The European countries are promising for launching crypto projects because they open access to the European market without excessive oversight from local regulators. This doesn’t mean that compliance is absent in the case of running a crypto exchange in Europe. On the contrary, there is more trust in a local European company compared to offshore companies and most overseas firms. The balance between compliance and entrepreneurial interests is what makes the European market attractive for prospective investors. The common ground for all European countries is the need of obtaining a crypto license.
The procedure of getting such a license differs from country to country. Prifinance Company cryptocurrency exchange license services help address local peculiarities of licensing procedures and maximizing the chances for successful applications. Our lawyers prepared an overview of some general aspects of license applications that are in place in any European jurisdiction.
What You Need to Know before Starting a Crypto Exchange in Europe
Before launching the crypto exchange in Europe, you need to observe the following common points regardless of a chosen jurisdiction:
- Incorporating a separate legal entity responsible for launching a crypto exchange is required. In most jurisdictions, it will be a joint-stock company.
- Any regulator expects the provision of detailed information about the founders, beneficiaries, and affiliate companies of the new crypto project.
- Searching for qualified staff is required. Future managers and employees should demonstrate specific qualifications and experience in the industry as well as a good reputation.
- It is necessary to develop and implement data protection, KYC, AML, and reporting policies.
- Carrying out the ongoing monitoring of all transactions with crypto assets through an exchange is required. A licensee should also carry out enhanced verifications and checks in case of any suspicious transactions that may be in place.
- Ensuring effective training of staff is required when running a crypto exchange.
- Carrying out regular reporting according to specific industry standards is required.
How Prifinance Specialists May Help You
If you consider the option of obtaining a license in one of the European countries, Prifinance lawyers are ready to provide comprehensive support for your business in these terms, including but not limited to:
- assessing the background of your business plan and your future business objectives;
- collecting all required documents from the founders and beneficiaries of the crypto project as well as the affiliate companies;
- addressing all required nuances of crypto licensing in a chosen jurisdiction;
- selecting the most appropriate type of legal entity to launch a crypto exchange in a chosen European jurisdiction;
- drafting all required registration, statutory, and other documents;
- developing and implementing internal policies (data protection, KYC, AML, monitoring, and reporting in the first turn);
- arranging the cooperation with banking providers as well as opening corporate bank accounts;
- handling all negotiations with local authorities and regulators to obtain a crypto license; supporting the resolution of all issues that may appear over the course of the operation of your crypto project.
Provide the particulars about the background and goals in your case. Prifinance specialists are ready to assist you effectively in creating and realizing an action plan to launch a crypto currency exchange in Europe.