In which countries is it allowed to open a crypto company?
In a relatively short time span, cryptocurrencies have grown to become incredibly popular. Hundreds of different kinds of ventures were founded to service the growing cryptocurrency market, and hundreds more are reportedly currently in the works. The number of countries that have wholeheartedly embraced cryptocurrencies has grown exponentially in the past year as well. When it comes to obtaining a crypto company license, you have a ton of countries to choose from. That said, regulations differ from country to country, so you’ll need to carefully consider each jurisdiction before figuring out which suits your business the best. To address the topic, it’s easier to list countries in which it ISN’T possible to launch a cryptocurrency business. Algeria, Ghana, and several other not-so-progressive countries have either outlawed or made it very difficult to acquire a license for a cryptocurrency company. Fortunately, it’s not too difficult to legally create and operate such a business almost anywhere else in the world.
What are the pros and cons of European countries?
There are a lot of factors to consider when looking into which countries are best for launching a cryptocurrency business, but they tend to be fairly consistent. Businesses with a certain set of needs are sure to prefer the European continent while others might look towards the Pacific or even the Americas to set up shop. There are many different things that come into play when launching a crypto business, so here are a few pros and cons of setting up shop in the Old World.
- Great reputation
- Solid legal framework
- Easy access to skilled workforce
- Stricter requirements
What are the pros and cons of offshore jurisdictions?
Offshore jurisdictions are pretty much synonymous with what’s called a “tax haven.” Small island nations like the Isle of Man or Saint Vincent and the Grenadines provide a great deal of secrecy and access to talented workers for business owners looking to do their business outside of their own countries. Let’s examine key advantages and disadvantages of setting up your business in offshore jurisdictions.
- No taxes or almost no taxes
- Cheap workforce
- Easy to register a business
- Bad reputation
- Regulatory framework might be subject to sharp change
Why is it necessary to obtain a crypto license?
While some entrepreneurs seem to think that acquiring proper licenses and opening a business doesn’t really need to happen, the reality is quite different. In order to launch a successful crypto venture, you need an appropriate license or else you’ll be at risk of an audit from your local authority. As it stands, even if the process of acquiring a proper license might include some setbacks, it’s nothing compared to the risk of an audit or legal action that could bankrupt your business.
What is the procedure for opening a crypto company?
Starting off on the right foot, it’s important to understand the process of obtaining the license you need in order to open a crypto company that’s built to last. In the broadest terms possible, here are the steps of starting a crypto business:
- Finding the right idea. The whole process of starting a cryptocurrency business requires a lot of thought and preparation and if the core idea isn’t there, it’s possible to achieve the goal.
- Completing a White Paper. It’s the step where you attract funds and determine if your idea has staying power. In most cases, however, even a great idea has to be put into practice before any investors will invest in it. A good White Paper looks at possible real-life scenarios for your business and lists the risks and downsides of your business model.
- Hiring a company to assist you. A good crypto counseling company will take care of everything so you can focus on perfecting your idea/WP or looking for investors. They will ensure that all the documentation is submitted in a timely fashion and that your business will be safeguarded in the event of legal troubles.
- Post-opening promotion. It’s an important step to include in the process in order to make sure that you get a decent amount of traffic on your site. A good post-opening promotion involves going live with your product and offering it for free or at a discounted price. A good word-of-mouth promotion can help grow your product’s popularity.
How to get a crypto license?
Obtaining a cryptocurrency license is an important step in the process of opening a crypto business. If you don’t want to hire a company that will aid you in the process, it’s recommended to take your time to do it all on your own. Remember to carefully examine all the government documentation and guidelines before making any serious moves. The process of obtaining a crypto license looks fairly straight forward and can be divided into the following steps:
- Select a country based on how well it suits your business.
- After choosing the jurisdiction, you’ll have to examine the requirements and submit your application.
- Open a business bank account in the country.
- Wait for the regulatory authorities to make a decision about your application.
- Pay any fees involved.
- Re-submit the corrected application if necessary.
If you want to get a crypto license or if you don’t want to use the services of a professional company, there’s still hope of a fairly smooth and straightforward registering process. That said, it’s always easier to let professionals handle it all for you.
As far as which jurisdiction might suit you the best, it’s a highly personal decision. Europe, for example, seems to be an ideal option for projects with a bigger starting budget and an emphasis on reputational security. Opening a company in an offshore country is a great decision for businesses that are more concerned with saving money. There are some shared upsides and downsides, but each case is different, so you’ll have to conduct your own research. What’s really important to highlight is that no matter which jurisdiction you’ll end up choosing, obtaining a crypto license is a must. Nobody’s going to be willing to work with an unlicensed business and your project will be doomed from the start.