Crypto Exchange License Cost and Requirements

As cryptocurrency trading goes through the roof, so do crypto exchange licenses. However, every jurisdiction has its own procedures and costs. This guide aims to break down the crypto exchange license cost and requirements while also highlighting ways that are more affordable.

Where Can You Find Them Cheapest? 

Estonia

Estonia is known as one of the cheaper places to get your cryptocurrency license. They offer low fees and simple application processes. Entrepreneurs looking for an Estonian license can expect to pay between €3,330 and €3,700 for their crypto exchange.

Malta

Although Malta isn’t as cheap as Estonia is for getting your crypto license; it’s secure regulatory environment makes up for it. Malta charges anywhere from €12,000 to €18,000 depending on which option you choose. But in return they provide stability and credibility for any cryptocurrency business.

Requirements For Getting A License 

Business Plan

One requirement that is consistent across all licensing jurisdictions is creating a comprehensive business plan. Within this plan should be company structure details, product/service descriptions, target market analysis, and long-term goals, along with financial forecasts and marketing strategies.

Financial Stability

Regulators will take very close looks into your finances – so make sure they’re in order! There aren’t any specific financial requirements because each applicant is different, but showing financial viability is mandatory.

Compliance Measures

Following anti-money laundering (AML) and counter-terrorist financing (CTF) regulations are crucial to success. Building strict compliance policies, training employees, and creating procedures for identifying and reporting suspicious activities are all steps that need to be taken in order to follow the law.

Technical Infrastructure

Any type of cryptocurrency enterprise needs a stable technical infrastructure. Looking into measures such as encryption, multi-factor authentication, and regular testing will help safeguard against cyber threats – making sure your business will always be up-and-running.

The Range Of Costs For Crypto Licensing 

The cost of getting a crypto license can vary quite a bit depending on specific licenses and jurisdictions people are searching for. Most prospective license holders should mentally prepare themselves to spend anything from a couple thousand to tens of thousands of dollars – with additional annual fees to maintain the license.

Steps To Obtain A License 

Research And Prep

Before you even start filling out any applications, you need to make sure you do thorough research on local laws and regulations. This is the only way you’ll get them right.

Application Submission

Once you’ve done all your research it’s time to submit! Each application process is different but most require things like business plans, financial forecasts, compliance programs and other documents that they deem necessary.

Approval Process

Now, it’s time to sit back, relax, and wait for approval. This process can range anywhere from weeks to months, depending on how complex your application is, along with jurisdictional factors. So don’t stress!

Licensing Requirements For Digital Currency

Different types of licenses require different paperwork requirements. Some might have you submit detailed business plans, while others might want personal references along with identification credentials for directors and shareholders.

Finding your way through the maze of cryptocurrency regulation and licensing can be complicated, but with a little bit of thinking about it, you’ll be able to start down the path of getting a license quickly. You should definitely think about cost factors, options for jurisdiction and requirements for being compliant if you want to take this path.