The crypto industry continues to develop actively, despite the crypto winter. While the value of most currencies is rapidly falling, more and more people worldwide are choosing to use such assets to pay for goods and services. According to statistics, the number of crypto transactions has increased by 40% compared to last year. Interest in the crypto industry leads many new organizations that want to use crypto assets to earn money appear. If you’re going to work in this industry, you need to get a license. On the site https://cryptocurrencylicense.co, you can find a reliable partner who will help you do it quickly.
Benefits of obtaining a license
In most countries, having a crypto license is mandatory for any company that wants to make money on crypto assets. However, some countries, such as the UK, have advisory permission, but various organizations still seek a work permit. Let’s see why this is happening.
Firstly, obtaining a work permit in one European country automatically allows you to work legally throughout the territory. Still, at the same time, you can choose a jurisdiction with the lowest taxes and simple reporting requirements.
Secondly, the crypto industry is very young and rapidly developing, so the government agencies of different countries still need to create stable rules to regulate this. However, they are constantly working on it. We regularly see new legislation establishing tighter controls on cryptocurrencies to prevent fraud, money laundering, and financial terrorism. Even if you can afford to work without registration today, there is a high probability that tomorrow, the rules will change, and you may get into severe problems with the law.
Thirdly, many investors refuse to cooperate with unlicensed companies because they do not believe in their reliability. When you get a license, you go through due diligence. In addition, investors understand that in case of problems, they will be able to resolve all issues in the legal field if the company has a license. Thus, if you want your organization to attract new investors and clients and actively develop, you must obtain a work permit.
Some people believe that the crypto industry should operate outside of government regulation. However, if you don’t get a work permit, government authorities may recognize you as a fraudster, which means that your platform will be blocked, and the owner will be forced to pay a rather hefty fine. Subsequently, obtaining a work permit will be much more difficult, as your reputation will be damaged, which is very important.
Who needs to get a work permit?
The crypto world is rapidly developing, and people actively seek new opportunities to profit from. You must obtain a work permit if you:
- Exchanges that exchange crypto for crypto or crypto for fiat;
- E-wallets (with hungry and hot storage);
- Organizations that are engaged in mining;
- Companies that issue new crypto assets that fall under the definition of securities.
Different jurisdictions are suitable for each of the above activities. So, for example, in Poland and Latvia, only exchanges and wallets are subject to licensing. And if you are engaged in mining, it is better to prefer the Czech Republic.
Understanding all the intricacies can be tricky, so contact specialized lawyers if you doubt whether you need a crypto license. They will analyze your company’s activities and help you choose the most appropriate jurisdiction.
How to get a work permit?
Each country sets its own licensing rules. However, we can highlight a few aspects that all crypto organizations need to do:
- Learn more about the regulation of cryptocurrencies in different countries and choose the most appropriate jurisdiction;
- Think over the work of your organization to the smallest detail, taking into account the requirements of government regulators;
- Register an organization;
- Open a bank account and pay the fee;
- Collect the necessary package of documents;
- Check that your organization meets all requirements;
- Apply.
With a law degree, it will be easier to go through the above steps independently. You can seek help from our lawyers. They have extensive experience in the industry and will help you get your license in the shortest possible time.
Which countries are better to choose for licensing?
Today there are many jurisdictions where crypto organizations can get a work permit. Today we want to discuss the most popular ones.
Lithuania
This jurisdiction has been very popular with large and small startups for a long time due to shallow requirements and simple taxation rules. However, this year the country’s government decided to tighten the rules to prevent fraud and money laundering. So, among the main requirements that your organization must now meet are the following:
- Authorized capital from 125 thousand euros;
- The company must have a local director and an anti-money laundering specialist;
- The organization must serve not only foreigners but also clients from this country;
- You should follow the KYC/AML policy;
- None of your team members must have a criminal record.
Among the main advantages of this jurisdiction are tax incentives for small organizations and straightforward rules for regulating the industry.
Poland
The most straightforward rules for regulating the crypto industry are in Poland. It establishes only 2 requirements – no criminal record and good qualifications of employees who occupy key positions. So, all members of your company must have a good reputation, specialized education, and work experience in the relevant post. It would be best to have a well-thought-out business plan describing your organization’s activities in detail.
You must also comply with all KYC/AML compliance requirements. It is one of the few jurisdictions that allows you to make anonymous transactions for no more than 1 thousand euros. There are also tax incentives for companies with at most 10 employees.
Estonia
This country was one of the first in the EU to regulate the crypto industry. Now quite strict requirements for crypto organizations have been developed here; however, if you are ready to work honestly and openly, there will be no problems. The peculiarity of this jurisdiction is that it has a straightforward taxation system – you pay 20% of the profit. There are no other fees or covered charges here.
Great Britain
The government of this country is interested in developing this industry; therefore, it creates elementary rules of regulation. A license here is a recommendation, but you must register your organization and pay taxes regularly. The tax rate is the lowest among European countries at approximately 13%. It allows you to invest more money in the development of your business.
Conclusion
If you want your organization to be able to work quietly, grow rapidly and attract a huge number of new customers, then you need to get a work permit. This process is quite complicated, but if you ask for help from specialized specialists, they can do all the hard work for you.
