Crypto-business without borders: legal support at every stage

Jurisdiction selection and business structuring
Company registration and crypto-licensing
Bank accounts and payments
Tax optimization

The cryptocurrency market continues to grow rapidly, opening new horizons for profitable projects. In 2023, the sector showed an impressive 108.1% growth, rising from $829 billion to $1.72 trillion. Trading volumes are also astounding: in the fourth quarter, they grew by 53.1% to $10.3 trillion.

However, as the market grows, so does the attention of regulators. Crypto-licenses are becoming a prerequisite for doing business in most jurisdictions. The process of obtaining a license can vary significantly from country to country.

top countries for crypto-business

UAE

The UAE offers ideal conditions for registering a crypto business:

Transparent legal environment
Low tax rates
Strategic geographical location
Stable economy
Positive attitude towards cryptocurrencies

Distinctive features of the UAE:

Choosing where to incorporate. The UAE offers Mainland and freezone company incorporation. Each option has its own advantages. Non-financial freezones (e.g. DMCC) are regulated by VARA and provide tax benefits. Financial freezones (ADGM in Abu Dhabi, DIFC in Dubai) have their own regulation of virtual assets. When choosing between freezones and Mainland, evaluate the pros and cons of each option for your business model.
Choosing the right commercial license. Required for all companies to operate. The types of licenses available depend on the location of registration - Mainland or Freesonia.
Obtaining an additional license from the regulator. For a crypto business, you will need an additional license from a regulatory body. This could be FSRA in ADGM, VARA in Dubai, DFSA in DIFC or SCA/CBUAE in the rest of the UAE.

Hong Kong

Hong Kong is attracting cryptocurrency companies:

Regulatory transparency
Active participation of the government in the development of the crypto environment
Developed infrastructure
Favorable tax policy

Distinctive features of Hong Kong:

Hong Kong has 2 regulators for virtual assets: the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA).
Companies issuing tokens that may be considered securities are required to obtain a license from the SFC under the Securities and Futures Ordinance (SFO). Other companies subject to the Anti-Money Laundering (AML) and Counter-Terrorist Financing Ordinance (AMLO) must be licensed by the HKMA.
In some cases, it is possible (and necessary) to obtain both SFC and HKMA licenses.

Kyrgyzstan

Kyrgios offers:

Transparent regulation of virtual assets
Loyalty of the state to crypto services
Favorable tax conditions
Emerging market

In addition, obtaining a crypto license in the country can be accomplished in a fairly short period of time.

Distinctive features of Kyrgyzstan:

Regulator. Financial Market Regulatory and Supervisory Service - controls the timing and completeness of filing of financial statements of regulated companies, including crypto-business and virtual assets.
Types of activities. Mining, issuance of tokens and services with virtual assets (purchase, sale, exchange, transfer, storage, etc.) are subject to regulation in Kyrgyzstan.
Platform requirements. In case you want to provide services in the field of virtual assets - you must have a platform located on servers in Kyrgyzstan.

Kazakhstan

Considering Kazakhstan as a jurisdiction for virtual asset activities should be based on the establishment of a company in the Astana International Financial Center (AIFC). It is fast becoming a major destination for cryptocurrency companies. The MFCA offers:

Strategic opportunities to enter new markets
Stable economy
Developed infrastructure

Distinctive features of MFCA:

A wide range of activities. Cryptocompanies can obtain one or more crypto licenses depending on their business model. MFCA offers a long list of possible licenses, consisting of more than 20 types of activities.
Tax benefits. Companies registered in this center receive a number of tax benefits, including exemption from income tax, property tax and land tax.
International Recognition. IFCA operates on the basis of English common law principles, which increases its attractiveness to international investors and partners.
Possibility of 100% foreign ownership. No restrictions on foreign ownership.
Ecosystem for business promotion. Various structures are in place to help attract investment, personnel and legal issues.
Active attraction of investments. Finally, the center has attracted about $11 billion of investments, which indicates confidence in it.

Georgia

Georgia is one of the popular jurisdictions. The country attracts crypto-business:

Good international reputation
Favorable tax system
Modern financial sector
Transparent laws

Distinctive features of Georgia:

Elaborate legislation on virtual assets. The National Bank of Georgia acts as a regulator in this area.
Georgia has minimal physical presence requirements.
Having a crypto license will allow your business to conduct activities such as cryptocurrency exchange, asset storage, processing, etc.

Switzerland

Switzerland's reputation in the world speaks for itself. Transparent legal system, stable financial infrastructure, stable political position - makes it one of the most favorable jurisdictions for crypto business.

Distinctive features of Switzerland

‍ In Switzerland, virtual assets are regulated by the following authorities:

Swiss Financial Market Supervisory Authority (FINMA) - responsible for ensuring the stability and integrity of financial markets in Switzerland.
Swiss National Bank (SNB) - plays a key role in maintaining financial stability and controlling payment systems in Switzerland. Although this body does not regulate cryptocurrencies directly, it has repeatedly stated that it is monitoring developments and is actively involved in the development of cryptocurrency regulation.
There is no centralized, comprehensive crypto regulation. Virtual assets are regulated by various existing acts, such as The Financial Market Infrastructure Act, The Anti-Money Laundering Act (AMLA) and others.
There are different types of licenses, depending on the activity, including banking, dealer and FinTech.
Attracts major digital asset companies such as Ethereum Foundation and Cardano Foundation.

Cayman Islands

Despite being an offshore jurisdiction, the Cayman Islands offer a favorable environment for crypto businesses with a clear regulatory framework.

Distinctive features of the Cayman Islands

The Virtual Assets Service Providers Act (2020), which comprehensively regulates virtual assets, has been passed , and AML Regulations apply to cryptocurrency companies.
The regulator is the Cayman Islands Monetary Authority (CIMA). Your company will need a license from this authority if you plan to exchange, transfer, store or issue tokens for virtual assets.
A "regulatory sandbox" regime is envisaged, under which a business innovating can obtain a temporary license under the supervision of CIMA.
No direct taxes. No direct taxes on income, profits and capital gains.
The jurisdiction is characterized by a well-developed legal system based on English common law.

Singapore

A leading hub for cryptocurrency businesses, offering clear regulation and substantial government support. The jurisdiction has long been a hub for major crypto players from around the world. It is valued for:

Strategic location
Stable economy
Developed infrastructure
Favorable tax policy

Distinctive features of Singapore:

Transparency Act. Payment Services Act (PSA), introduced in 2019, regulating various types of digital assets and payment services.
Main regulator. Monetary Authority of Singapore (MAS). Depending on your business model and transaction volume, you will need one of the licenses provided by this authority: money changing license, standard payment institution license or major payment institution license.
Office Registration. A crypto business requires a registered office in Singapore and at least one resident director.
No capital gains tax for private investors, 17% corporate tax for companies.

why would I need a
crypto license?

Worldwide recognition 
In many countries, a crypto license carries international weight, which increases the reputation and credibility of your business.
Regulatory clarity and trust
Having a license provides legal certainty and increases the confidence of customers, investors and partners.
Tax advantages 
Many countries have a competitive tax system with low corporate tax rates and no personal income tax, making them highly attractive for crypto companies looking for a favorable business environment.
Diversity of business activities
 A crypto license allows you to engage in a variety of activities including cryptocurrency trading, exchange, storage and related services.
Access to traditional finance
Licensed cryptocurrency companies can more easily establish relationships with banks and financial institutions.

Main types of cryptolicenses

Broker's license
A brokerage license is crucial for companies that act as intermediaries in the trading process, executing cryptocurrency buying and selling transactions for their clients. Such companies are required to implement risk management systems, comply with market rules and ensure transparent transaction reporting in accordance with financial laws. The license requires sufficient capital, the use of sophisticated trading platforms and fair pricing to protect and benefit consumers.
License to issue tokens
In order to legally create, issue and distribute tokens based on blockchain technology, regulatory authorization is required. Such a license is particularly important in the context of Initial Coin Offerings (ICOs), Security Token Offerings (STOs) and other forms of cryptocurrency fundraising.
License for storage of virtual assets
The custody license is intended for companies responsible for the safety of their customers' virtual assets. It emphasizes the need for high-level security measures to prevent unauthorized access and potential theft of cryptocurrencies. Holders of such a license must ensure advanced security features such as multi-signature wallets and cold storage.
Mining license
In some regions, companies that engage in cryptocurrency mining must obtain a license. The license usually focuses on the environmental impact of mining operations on the environment, compliance with standards for equipment use and energy efficiency.
License for processing
Companies that plan to provide payment transaction processing services with cryptocurrencies need to obtain a permit issued by financial or regulatory authorities that allows the company to process cryptocurrency transactions.
Cryptocurrency exchange license
Crypto exchanges in the UAE require a special license. It confirms compliance with transaction security standards, user verification and financial regulations. Operators are required to securely process large volumes of transactions, protect customer funds and implement effective anti-fraud measures. These requirements are aimed at ensuring regulatory standards in the UAE crypto industry.

The process of obtaining a license

Submitting an application

1 Choosing the right jurisdiction

Choosing the right jurisdiction is your top priority. There are many factors to consider: transparency of legislation, tax regime, convenience of geographical location and stability of the economic situation. It is important to assess not only the current conditions, but also the prospects for changes in the country's cryptocurrency legislation.

2 Creation of infrastructure

The corporate structure of the business must comply with the strict requirements/legislation of the crypto industry. It is important to choose a legal entity form, provide a clear governance structure and appoint local directors and responsible managers in accordance with legal requirements.

3 Preparation of documentation

The stage includes the development of a business plan detailing the business model and financial projections, as well as AML, CTF and customer due diligence (KYC) policies. The composition of the documents and their requirements may vary from jurisdiction to jurisdiction.

4 Appointment of responsible persons

The selection and appointment of key officers such as compliance officer, CFO and CTO is important for business compliance with legal standards.

5 Filing an application and paying fees

Once all documents are prepared, the license application is submitted along with the fees. The procedure is mandatory in any jurisdiction.

6 Continuous compliance

Once licensed, it is important to maintain ongoing compliance. This includes regularly monitoring changes in legislation, conducting internal audits and changing company policies to comply with new laws.

Comparative table by country

Country

Timeline

Regulator

* The timeframe is indicative and depends on a huge number of factors, from your business model to the speed of preparation of the necessary package of documents. In some cases, the timeframe may decrease, and in some cases it may increase.

What can we do to help?

Document preparation

The right jurisdiction is a key step in obtaining a crypto license. We focus on legal transparency, tax incentives and fintech support. We will research current and potential changes to ensure your business is flexible in a changing environment.

Appointment of key persons

We will register the legal entity in the chosen jurisdiction, taking into account corporate laws and your strategic objectives. We will select the appropriate form of company and help you establish a clear governance structure for full compliance.

business plan preparation

We will put together a business plan, develop AML/CTF/KYC policies and prepare a White Paper describing your technology and business model. This will help demonstrate your transparency and readiness to regulators and partners.

Application and payment

We prepare and submit an application with a description of the business model, and assist with the payment of fees. Everything to confirm that you are ready to work within the legal framework.

Launch and maintenance

Post-licensing support - updating procedures, internal audits, employee training for legal compliance.

Examples of our recent projects:

AML policies and risk assessments for Dubai-based crypto company
We helped prepare AML policies and risk assessments for a Dubai-based company engaged in mining and investing in its own portfolio of assets.
Comparison of legal frameworks for crypto-businesses
We conducted a detailed analysis for a future NFT marketplace on the types of licenses, legal status of crypto assets, taxes, intellectual property and payroll options in various jurisdictions - UAE, Hong Kong, Singapore, Malta, Cyprus and El Salvador.
Legalization of client's crypto business in Estonia
We registered the company, ensured the necessary presence in the country, prepared all documents to meet AML/KYC requirements, obtained a license for cryptocurrency transactions and connected the client to the payment system with EMI license in Malta.
Setting up compliance for a crypto broker in the UAE
Our team prepared AML/CFT Policy, Anti-Corruption Policy, Business Risk Assessment Policy and other documents for a company planning to operate a broker-dealer, exchange and custody of crypto-assets in the UAE.
Creation of crypto-exchange in Lithuania
We identified Lithuania as the most suitable jurisdiction for one of our clients who was planning to open a crypto exchange, studied the regulatory framework of cryptocurrencies in Lithuania, helped to obtain the necessary licenses and prepared local acts, including AML policy.
Launch of online casino with crypto features
We helped launch an online casino with various crypto options by analyzing the client's business model and proposing the optimal jurisdiction. We prepared the contract for the sale of tokens required for the planned operations.
Launch of WEB3 fintech application in UAE
We prepared the user agreement (EULA) for launching a WEB3-based fintech application in the UAE by verifying the regulatory requirements of the financial sector.
Launch of a major mining project in the UAE
We conducted a detailed analysis and compared business conditions in freezone and mainland in the UAE, recommended several suitable options to the client, accompanied the registration process, and developed a chain of payment solutions for the business, including opening accounts on crypto exchanges, banks and payment systems.

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Crypto-business without borders: legal support at every stage

top countries for crypto-business