Crypto License
Last Update: 22.04.2026
To develop a legal and successful crypto business, you need a Crypto License. Many countries offer loyal conditions for crypto-business.
Choosing a jurisdiction is an individual process that depends on the specifics of your crypto business, planned model, tax preferences, and long-term strategies.
If you haven’t yet decided in which jurisdiction to start your crypto business, study our detailed guide or contact our crypto law experts for individual recommendations and to choose the most suitable solution.
What is a crypto license?
A crypto license is an official permit from a regulator to conduct business with digital assets (virtual assets/crypto assets). This status is usually required for VASPs/CASPs that exchange, issue, store, transfer, or service transactions with cryptocurrencies and tokens, as well as work with derivative instruments.
The principle of regulation is similar in many countries, but the licenses themselves have different names depending on the jurisdiction. In the European Union, companies obtain CASP (Crypto Asset Service Provider) status in accordance with the requirements of MiCA Regulation (EU) 2023/1114. In non-EU countries, such as a number of offshore and flexible jurisdictions, the designation VASP (Virtual Asset Service Provider) is used. In some Latin American countries, crypto businesses are often registered through PSAV licenses (except in El Salvador, where DASP applies), and in Hong Kong, the VATP (Virtual Asset Trading Platforms) format applies.
There are several types of licenses for cryptocurrency exchange. Each of them is associated with specific services: exchange, storage, brokerage, token issuance, and other operations. The right choice of license depends on the business model and scale of the project.
Without a license, a company risks losing access to system payments, facing lawsuits, and reputational damage.
Advantages of a Crypto License
A crypto license acts as a strategic lever. It gives businesses access to a full-fledged financial infrastructure, mitigates operational risks, and enhances the company’s reputation in the eyes of partners and customers. With the tightening of the regulatory framework, having a license is no longer just a competitive advantage; it has become a fundamental element of a sustainable business model.
International expansion
A single license in a number of jurisdictions allows a company to operate in several countries. Companies reduce their time to market, avoid duplicate checks, and save resources. For example, in the EU, CASP status simplifies the scaling of business across several key regions at once.
Increased trust from customers and partners
Institutional funds and large partners simply do not consider deals with companies without regulated status. Having a license not only simplifies negotiations but also speeds up approvals. Partners understand that the company operates according to transparent rules and complies with established standards.
Reduced regulatory risks
A licensed business operates in a predictable legal environment. The likelihood of blockages, sanctions, and unexpected restrictions is significantly lower. This allows you to build a strategy not in conditions of uncertainty, but with clear regulatory requirements in mind.
Systematic and manageable business
Licensing requires a structured internal architecture: compliance, control, processes, and reporting. This increases the company’s stability and facilitates scaling. As a result, such companies do not depend on specific individuals or manual management, but operate according to a clear model.
Strong negotiating position
Having a license strengthens the company’s position. It makes it easier to negotiate with banks, providers, and strategic partners for the stable operation of your company.
Long-term stability and brand
A license strengthens the company’s reputation and gives it strategic resilience. In an environment of tightening regulation, it is licensed players who retain access to infrastructure and markets. This is not a one-time advantage, but a factor that determines the company’s position in the future.
Acceleration of tokenization and RWA projects
Large exchanges and custodial providers require their partners to have a crypto license in a recognized jurisdiction (CASP, MSB, VASP, etc.). Without official registration, projects are often denied listing. With a license, the verification process is accelerated from months to weeks.
Access to financial infrastructure
Without a crypto license, it is virtually impossible to open a corporate account in banks in developed jurisdictions. Financial institutions consider unlicensed crypto projects to be high-risk, even if they operate legally. A license changes the situation: bank accounts, access to cards, payment gateways, and fiat settlements become available. This is a transition to a different level of operations, comparable to the traditional financial sector.
Types of crypto licenses, their purpose, and who needs them
For convenience and to understand who needs a crypto license, Gofaizen & Sherle has standardized the classification of crypto intermediaries based on European Union legislation. At the same time, it will be understandable and applicable in other jurisdictions as well. To simplify understanding, we have divided all intermediaries into three levels, depending on how deeply they interact with client funds.
| Classification by levels | Type of crypto license | Primary purpose | What services are covered | Who needs a crypto license | Recommended jurisdictions |
|---|---|---|---|---|---|
| First level | Crypto Broker License | Intermediary activities | Transfer of orders and client requests to buy or sell crypto assets between trading platforms, cross-trading, or OTC. Such a broker acts as a technological intermediary without having direct access to client funds. The ability to advertise financial platforms in a region where the client (crypto exchange) does not meet the requirements of the regulator. | Crypto Brokers, Liquidity Aggregators and Marketing Agencies promoting CASP/VASP/DASP’s financial platforms. | 1. Panama 2. Costa Rica 3. Saint-Lucia |
| First level | Portfolio Management with virtual assets | Crypto asset management | Covers trading bots and software that uses crypto exchange APIs to execute orders on behalf of clients without direct access to funds. Management is automated, with no possibility to change the strategy after launch. Withdrawal or storage of assets is not provided. | Asset managers. Non-customizable trading bots. | |
| First level | Provision of advice | Crypto Trading signals | They advise on investment strategies, providing direct trading signals/recommendations on buying and selling assets. They do not have direct access to client funds. | Investment consultants | |
| Second level | Crypto exchange license | Permission to crypto currencies exchange | Conversion of virtual assets into traditional currency and vice versa. | Online crypto exchange, Crypto-ATM (physical exchange). | 1. Switzerland 2. Canada MSB (except custody) 3. US (Montana) 4. Bosnia 5. South Africa 6. Anjouan 7. Cayman Islands 8. BVI |
| Second level | Crypto Custody License | Permission to store crypto assets | Storage of cryptocurrencies and private keys | Custodial providers and crypto exchanges. | |
| Second level | Crypto processing License | Processing crypto payments | Acceptance, processing, exchange and transfer of cryptocurrencies | Merchant providers, Payment gateways, Cryptocurrency payment processors, Escrow providers. | |
| Classified as a third-level | Full VASP/CASP/DASP/Crypto license | Multilateral trading platform for spot trading | A multilateral centralized trading platform will allow the platform operator to interact with client funds by storing, exchanging and processing virtual assets. The platform also has an appropriate software mechanism for matching buyers’ and sellers’ orders. | Crypto Exchanges for spot trading. | 1. El Salvador 2. CASP (EU) 3. VARA (UAE) 4. Hong Kong 5. Singapore 6. MTL (USA) (derivatives not allowed) |
| Classified as a third-level | Providing derivatives on underlying crypto assets | Organization of trading and creation of derivative contracts | Conducting transactions with options, futures, perpetual contracts on cryptocurrencies, as well as using borrowed funds from the broker for short and leverage transactions. | Stock Exchanges, Crypto Exchanges for Crypto Derivatives Trading. | |
| Classified between 1-3 | Issuer of asset-referenced/utility/security/e-money tokens | Token issuance | Digitalization of physical assets/securities and a way to raise funds for startups/crowdfunding projects. | Token issuers. |
It should be noted that in some jurisdictions, such as the United Arab Emirates, registration of activities for trading personal funds is required. Companies of this type and their activities in the UAE are registered in special trading zones, such as DMCC and IFZA.Not sure which jurisdiction to choose for opening a crypto business?
Contact us, and we will select the most suitable options for you.
Crypto license in Europe
The European Crypto License allows you to work legally in the EU, makes crypto-business transparent, and increases the trust of customers, partners, and state regulators. This is a promising direction for entrepreneurs to engage in cryptocurrency activities.
The European Parliament approved MiCA on April 20, 2023, making it a groundbreaking global legislation that sets a precedent for other jurisdictions.
MiCA is a regulatory framework developed by the European Commission to regulate markets for crypto assets and related services that are not currently covered by EU regulations.
It has been developed since 2018 and aims to provide a single licensing regime for all EU member states to harmonize regulation on the creation and trading of cryptocurrencies in line with the European Digital Finance Strategy. MiCA is expected to become effective sometime between mid-2024 and early 2025.
The adoption of MiCA will directly affect the regulation of any company that wants to operate in the EU, even if it seeks customers outside the EU. However, MiCA will not affect national regulatory frameworks that are already in force in some EU countries. These frameworks may supplement MiCA regulations and impose additional requirements that companies and crypto-asset service providers will also have to comply with. That being said, MiCA advocates that every company should be subject to regulation, hence being a CASP license holder.
Even before the MiCA implementation, European countries’ regulations had a single scenario, corresponding to the laws of the EU. However, in practice, they were having significant differences, especially in business models related to crypto-assets.
Therefore, choosing a jurisdiction must entail considering the specifics of regulations, conditions, and advantages of the crypto licensing scope in the EU countries. In most cases, a cryptocurrency license will be necessary. Regardless of the chosen jurisdiction, each regulator defines several specific requirements that must be met to obtain a crypto license successfully.
Which jurisdictions fall under CASP and which under VASP?
In Europe, there are two approaches to licensing crypto companies: CASP (Crypto Asset Service Provider) and VASP (Virtual Asset Service Provider). Understanding this difference is crucial in selecting the appropriate jurisdiction.
With the entry into force of the MiCA regulation in 2024, EU countries will transition to a single CASP regime, which establishes common rules for all member states. This means that jurisdictions such as Lithuania, Poland, the Czech Republic, Estonia, Slovakia, Portugal, and Spain will issue CASP licenses valid throughout the EU.
At the same time, the UK, Switzerland, and Bosnia and Herzegovina are not part of the European Union and are not subject to MiCA. Therefore, crypto companies in these countries obtain VASP status through national laws and international recommendations from the FATF.
| EU jurisdictions | License type | Example |
| Lithuania, Poland, the Czech Republic, Estonia, Spain, etc. | CASP (under MiCA) | Single license for all EU countries |
| United Kingdom, Switzerland, Bosnia and Herzegovina | VASP (national regulation) | The license is valid only within the country |
Crypto regulation in Europe has become more structured following the introduction of MiCA. The CASP license allows companies to provide services throughout the EU under a single legal framework. However, approaches to licensing and supervision vary from country to country. Obtaining a crypto license in Europe requires an analysis of the jurisdiction, from tax policy to ownership structure requirements and compliance procedures.
Poland
The Polish crypto license remains attractive to companies planning to operate in the EU thanks to clear rules and access to the pan-European market. The amount of capital depends on the category of services and varies from €50,000 to €150,000 (e.g., €125,000 for exchange and storage), with a corporate income tax rate of 19% (preferential rate of 9% up to €2 million). Registering a Sp. z o.o. opens up the possibility of providing crypto asset exchange, storage, transfer, and management services within the EU.
Explore
Czech Republic
The process of obtaining a crypto license in the Czech Republic is currently governed by MiCA standards under the supervision of the ČNB. The authorized capital is between €50,000 and €150,000, and the tax rate is 21%. Registering an s.r.o. Opens up access to providing services with crypto assets throughout the EU.
The Financial Market Digitalization Act has been in force since 2025. The transition period for VASPs is until July 2026 and applies only to companies that have applied for CASP by July 31, 2025; if CASP is denied, VASP status is lost immediately. The processing time is 6-8 months on average.
Explore
Lithuania
The process of obtaining a Lithuanian crypto license is in demand among companies entering the EU market. The minimum capital is €50,000 – €150,000 (€125,000 for exchange/storage), and the tax rate is 15%. UAB registration allows you to provide crypto asset exchange and storage services. The country is implementing MiCA regulations. VASP supervision is carried out by the FCIS, while CASP supervision is carried out by the Bank of Lithuania. All active operators can be checked in the public register. Licensing takes 6-8 months.
Explore
Bosnia and Herzegovina
A promising jurisdiction for VASPs with simplified regulation. The regulatory framework is still being finalized, but general AML and KYC requirements are already enforced. Companies are required to appoint a financial monitoring officer (MLRO) and notify the regulator of the commencement of activities within 30 days. Corporate tax is 10%, and dividends are not taxed. The registration process takes 1-2 months, and a physical office is not required, making a crypto license in Bosnia and Herzegovina a popular solution for startups and international players.
Explore
Switzerland
Starting a crypto business in Switzerland remains attractive thanks to its stable financial system, flexible regulation, and no capital gains tax for private investors. To register a GmbH (LLC), you need capital of €20,800, and for an AG (LTD), €104,000 (minimum payment of €52,000). Income tax is 11.9-21%. Although the country is not part of the EU, FINMA harmonizes its rules with MiCA, maintaining stricter standards. Licensing takes 2-3 months. A crypto license in Switzerland is required for legal operation.
Explore
Spain
Spain remains one of the most sought-after jurisdictions for entering the EU market, and the process of obtaining a Spain crypto license here is attractive due to its full harmonization with MiCA and access to the single European space. The minimum capital requirement ranges from €50,000 to €150,000 depending on the class of services, and the income tax rate is 25%. Registering an S.L. allows you to provide crypto asset exchange, storage, transfer, and management services throughout Europe. The CNMV is responsible for oversight, and the licensing period is 6-8 months.
Explore
Germany
A crypto license in Germany provides legal access to the regulated EU market with a high degree of trust and transparency. Regulation of the crypto sector is controlled by BaFin, and on December 30, 2024, the country switched to the uniform standards of MiCA Regulation (EU) 2023/1114. The national model under the Kreditwesengesetz is gradually becoming a thing of the past. From December 31, 2025, companies are required to operate under CASP rules. The license confirms full compliance with the most stringent EU requirements and allows crypto services to be provided in any EU country without re-licensing. It is considered a prerequisite for exchanges, custodial wallets, exchangers, payment solutions, and investment services.
Explore
Estonia
The procedure for obtaining a crypto license in Estonia remains one of the most transparent in the EU. The CASP (MiCA) license entitles the holder to provide crypto asset exchange and storage services throughout Europe. The minimum capital requirement is €50,000 to €150,000, with a 0% income tax rate on reinvested profits and a 20% tax rate on distributed dividends. The process usually takes 4 months, but the timing depends on the readiness of the documents and the FIU’s review. A local director, local office, AML officer, and internal audit are required.
Explore
Slovakia
Thanks to harmonization with MiCA, Slovakia remains one of the notable entry points into the EU crypto market. The process of obtaining a Slovak crypto license goes through the National Bank, where new operators apply for CASP status. Depending on the type of services, the minimum capital requirement is €50,000, €125,000, or €150,000, and previously registered VASPs can operate under transitional rules until December 30, 2025. Document verification takes about 25 business days, and the regulator makes its decision in about 1-2 months. The tax system in 2025 provides for a 21% corporate tax.
Explore
Portugal
Portugal crypto license maintains its reputation as one of the most attractive in the EU. Until a national MiCA authority is appointed, regulation is carried out through the Banco de Portugal and CMVM. A CASP license requires company registration in Portugal, a physical office, a local AML officer, and capital ranging from €50,000 (class 1) to €150,000 (class 3), depending on the services provided. The review period is approximately 6-8 months. Corporate tax is 21%. For VASPs, a transitional regime is in place until the end of 2025, after which full implementation of MiCA and CASP is expected.
Explore
Bulgaria
At the moment, there is no need to obtain a special crypto license in Bulgaria, as cryptocurrency is not considered a financial instrument and is not regulated by a financial regulator. However, since December 2024, the country has implemented MiCA regulations. To operate in the EU market, companies register CASP status through the FSC, and for electronic money tokens through the BNB (Bulgarian National Bank). The processing time is 6-8 months. A local director, local AML/MLRO, compliance with DORA requirements, as well as internal AML/CFT policies and procedures, is mandatory. Corporate tax is 10%, VAT is 20%. The transition period for VASPs is until July 2026.
Explore
United Kingdom
The United Kingdom has long established itself as a stable and predictable jurisdiction for crypto businesses. There is no formally established minimum capital requirement, but the FCA assesses a company’s financial stability and requires it to have resources to cover operational risks. Registration includes submitting a business plan, internal risk management policies, proof of office address in the country, and compliance with AML/KYC, including the Travel Rule. The corporate tax rate is 19-25%. The UK crypto license application approval process usually takes 18 months.
Explore
Cyprus
Since 2025, a CASP license from CySEC has been in effect under MiCA standards. Authorized capital: €50,000–150,000 depending on services. Registration in Cyprus, an office, a bank account, a qualified team, AML/KYC, and DORA compliance are required. A Cyprus crypto license entitles the holder to exchange, store, and issue tokens, with a processing time of 4-6 months. Thanks to a corporate tax rate of 12.5% and no capital gains tax on securities transactions, Cyprus remains one of the key hubs for crypto projects in Europe.
Explore
Norway
Norway offers a transparent and favorable environment for crypto businesses, combining clear regulation with government support for technology. To obtain a crypto license in Norway, virtual asset service providers must register with Finanstilsynet and comply with AML/KYC requirements. There is no minimum capital requirement, but the company must demonstrate financial stability. The processing time is 4-6 months on average, provided that the documents are prepared correctly. The corporate tax rate is 22%, and there are double taxation agreements in place.
Explore
Jersey
Jersey is an internationally recognized financial center with progressive regulation for crypto businesses. Licensing is handled by the JFSC, which requires registration, local directors, and strict AML/KYC. Advantages: 0% corporate tax, 100% foreign ownership, access to banking infrastructure, and support for blockchain projects. A crypto license in Jersey ensures transparency and trust, while a flexible regulatory framework simplifies business development.
Explore
Gibraltar
Gibraltar is one of the most advanced centers for crypto business in Europe, with DLT regulation introduced in 2018. To obtain a crypto license in Gibraltar (DLT license from GFSC), you need to register a company, have an office, an MLRO, AML/KYC procedures, and comply with the 10 principles of the DLT regulation. The process takes between 5 and 12 months, depending on the complexity. The state offers an attractive tax regime: corporate tax is 12.5%, and there are no taxes on capital gains or dividends. This makes Gibraltar a strong entry point for crypto projects focused on stability and trust.
ExploreCrypto exchange license in other jurisdictions
Regulation of crypto outside the EU remains fragmented. Some jurisdictions have a clear crypto licensing procedure, while others have simplified crypto company registration. Requirements for obtaining a crypto license (VASP license) vary from minimal to comprehensive: capital, KYC, AML, audit, and disclosure of structure. The choice of country determines the launch date, access to payment solutions, and the level of international recognition of the license.
Canada
A Canadian crypto license gives crypto companies access to legal work with fiat and digital assets without minimum capital requirements. Registration through FINTRAC simplifies market entry and reduces administrative barriers. At the same time, it is necessary to strictly comply with AML/CTF regulations and register with FINTRAC, which increases transparency and trust on the part of banks. Companies pay corporate tax (15–38%) and GST/HST. The license gives the right to exchange and store cryptocurrency and use banking infrastructure. The average processing time is 4-6 months.
Explore
United States
Obtaining a US crypto license is your ticket to the world’s largest crypto market, which accounts for over 30% of global turnover. Regulation here is structured in two levels: first, you need to register with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business, and then obtain licenses from the states where you plan to operate. In all other states, in addition to MSB registration, companies are also required to obtain a Money Transmitter License (MTL), which is necessary for legal work with banks and financial transactions with cryptocurrencies. The exceptions are New York, California, and Montana, where special rules apply. For example, obtaining a New York BitLicense and, starting July 1, 2026, a California DFAL. Obtaining an MSB in all states takes 1-2 months. However, an MTL license can take 4 to 12 months to obtain, depending on the state.
Explore
UAE
Crypto regulation in the UAE is based on strict AML standards and oversight by VARA, which ensures transparency and trust. The UAE attracts crypto companies with flexible regulation and developed infrastructure in the DMCC and ADGM free zones. The minimum capital requirement ranges from 100,000 to 1 million dirhams, depending on the scale of services. Corporate tax is 9%, and in some zones, profits from cryptocurrencies are not taxed. The state fee is 40,000-100,000 dirhams. A crypto license in Dubai is issued within 6-8 months upon submission of a full set of documents.
Explore
Kazakhstan
Kazakhstan has tightened crypto regulations through the AIFC, creating clear rules for working with digital assets. The minimum authorized capital is at least USD 200,000, which makes entry affordable even for small projects. Corporate tax is 20%, but AIFC residents are exempt from payment until 2066. A license in Kazakhstan provides access to cryptocurrency exchange and storage, expanding access to Asian markets. The term for obtaining a crypto license in Kazakhstan is 6-9 months, including an audit and strict control by the AFSA, which increases investor confidence.
Explore
Georgia
Crypto license in Georgia is particularly attractive in the Free Industrial Zone (FIZ), where tax incentives apply. No minimum capital is required, and income tax is 0% on reinvestment and 15% on distribution. The licensing process takes 1-2 months. Registering an LLC gives you the right to exchange and store cryptocurrencies in compliance with AML policies.
Explore
Hong Kong
Hong Kong crypto license, issued by the Securities and Futures Commission (SFC) and suitable for international VASPs. Minimum capital is 5 million Hong Kong dollars, which confirms the financial stability of the company. Tax is 8.25% on the first 2 million in profits and 16.5% on amounts exceeding this amount. Profits earned outside Hong Kong may be taxed at a rate of 0%. A resident director and AML compliance are required. Registration as a limited liability company allows you to work with cryptocurrencies and stablecoins (from August 2025). The licensing process takes 6-12 months and is supervised by the SFC and HKMA through a public register.
Explore
Singapore
Crypto license in Singapore is issued by the Monetary Authority of Singapore (MAS) and combines an innovative approach with strict control. The minimum capital requirement is between SGD 100,000 and SGD 250,000, depending on the type of services, and the income tax rate is 17%, with tax incentives available for some companies. A flexible regulatory system and developed financial infrastructure make Singapore attractive for crypto businesses. To register a PTE Ltd, a local office and a resident director are required. The license allows for the exchange and storage of digital assets, and the process takes 6-12 months.
Explore
El Salvador
A DASP license in El Salvador (crypto license) is attractive to startups due to its status as the first country to recognize Bitcoin. The minimum capital requirement is $2,000, and the income tax on crypto transactions is 0%, making the jurisdiction very attractive for startups. Registration in the SA format requires a business plan and an AML policy, allowing you to provide exchange and investment services. Regulation is carried out by the CNAD through an open registry. The license is issued in about 2 months.
Explore
Labuan
Labuan crypto license attracts with low taxes and international opportunities. The minimum capital is MYR 500,000, and the income tax is 3%, which is beneficial for startups or scaling. Registration through IBFC provides access to the global market without a local partner, subject to AML compliance. Supervision is carried out by the LFSA through an open register. The license is issued within 3-6 months, making Labuan an attractive option for entering the international arena.
Explore
Argentina
In Argentina, a VASP license from the CNV has been in effect since March 2024, opening the way to Latin America’s dynamic crypto market. Companies can operate as an SRL, complying with AML/CFT requirements, which allows them to legally exchange and store digital assets, as well as access international partners. The minimum authorized capital is $35,000-150,000, and the income tax is 25-35%. The CNV maintains an open registry, strengthening trust in operators. Since December 2025, a crypto license in Argentina can be obtained in about six months, which is suitable for projects with long-term development plans.
Explore
Australia
A crypto license in Australia through AUSTRAC is suitable for exchanges and digital currency operators. There is no minimum capital requirement, which provides flexibility for starting operations in the jurisdiction. Cryptocurrency is taxed as property: purchase and storage are not taxed, and profits from sales are taxed at rates ranging from 0% to 45% depending on income. Registration as a Pty Ltd in compliance with AML/KYC ensures legal operation and access to the banking system. AUSTRAC and ASIC monitor activities through a public registry. The license is issued within 6-8 months.
Explore
Panama
Panama remains one of the most accessible jurisdictions for cryptocurrency and crypto exchange businesses. It has territorial taxation – foreign income is not taxed (0%), and there are no minimum capital requirements. A company in the form of an S.A. can work with virtual assets with limited government control. Loyal regulation and simple procedures allow you to obtain a crypto license in Panama in 3–4 weeks, which is suitable for quick project launches.
Explore
New Zealand
A crypto license in New Zealand is obtained through the Financial Service Providers Register (FSPR). No minimum share capital is required, but companies must prove their financial stability. Income from trading, mining, staking, NFTs, and other operations is subject to a 28% income tax, and a 15% VAT applies to related services (not applicable to purchases/sales). Registering a company in compliance with AML/CFT requirements allows you to provide asset trading and storage services. The process takes 1–2 months, and the stable legal environment simplifies market entry.
Explore
South Africa
A crypto license in South Africa is obtained through the FSCA under the FAIS regime, where crypto assets are recognized as financial products. There is no minimum capital requirement, but financial stability requirements apply. Capital gains tax: up to 18% for individuals and up to 22.4% for companies. Registration as a Pty Ltd in compliance with AML/CFT regulations gives access to exchanges and platforms. The FSCA maintains a public register of licensed companies. The process takes several months, combining flexibility in doing business with official oversight.
ExploreWhich authorities regulate the issuance of crypto licenses
The issuance of crypto licenses is controlled by different authorities depending on the country and its legal system. Most often, these are financial regulators, central banks, or special agencies that supervise capital markets. Their job is to make sure that the company meets requirements for security, transparency, protecting customer interests, and following AML/KYC standards.
Examples of government agencies that issue licenses, including licenses for cryptocurrency exchanges:
| Region / Country | Regulator | Licensing features |
| European Union | National financial regulators of EU member states (e.g., the MFSA in Malta, BaFin in Germany) are subject to the MiCA single regulation. | License valid in all EU countries; Strict AML/KYC, capital, and disclosure requirements |
| United Kingdom | Financial Conduct Authority (FCA) | Regulates exchanges, custodial services, and crypto service providers; strict focus on AML. |
| United Arab Emirates | VARA (federal level), ADGM and DIFC (free zones) | Flexible system for international projects; separate conditions for exchange, storage, and tokenization |
| Hong Kong | Securities and Futures Commission (SFC) + HKMA | License for exchanges and custodial services; separate rules for stablecoins |
| Singapore | Monetary Authority of Singapore (MAS) | Licenses under the Payment Services Act cover exchange, storage, and payment transactions |
| Australia | ASIC + AUSTRAC | ASIC – financial services regulation; AUSTRAC – AML/KYC control for crypto businesses |
| Canada | FINTRAC (MSB registration) + provincial licenses | Uniform federal AML rules, but local variations by province |
In most jurisdictions, these authorities not only issue licenses but also conduct ongoing supervision of companies’ activities, including reviewing reports, compliance with security standards, and audit readiness.
The standard process for obtaining a cryptocurrency license for a cryptocurrency exchange
The process for obtaining a crypto license can vary from jurisdiction to jurisdiction. Some things may vary from state to state, so it’s important to conduct a detailed analysis of the legal framework and requirements of the cryptocurrency industry in the specific jurisdiction where you plan to operate.
In general, the process of obtaining a crypto license in different countries may include the following steps:
- Decide on the jurisdiction in which the company will be registered. It is important to consider the requirements of different states for the legal form allowed for such activities, the size of the authorized capital, the residence of the founders, the ideal reputation of directors and beneficiaries, the number of shareholders, and other nuances.
- Register the company in the selected jurisdiction. Please note: usually large stock exchanges have a complex structure that includes several companies, each of them performs certain functions. This allows you to optimize taxation and reduce the risks associated with doing business.
- Collect and prepare necessary documents and information to submit to the regulator. As a rule, to obtain a crypto license, it is necessary to submit several documents, such as a business plan, a description of services offered, information on the project team, financial statements, etc.
- Open a corporate account (in most cases, with a bank of the selected jurisdiction)
- Hire specialized staff, including certified employees with experience and a reputation in finance and virtual assets. This usually applies to hiring AML officers and Compliance officers.
- Develop and implement security policies and protect users’ data.
- Prepare the necessary technical and software for the exchange, by the needs of users and the requirements of regulatory bodies.
- Apply for review by an authorized body for obtaining a license. During the application review process, additional information or documents may be required, and the company may be checked for compliance with requirements and standards.
- Once a company passes all the steps of the review and meets the requirements, it receives a crypto license.
Find more information about the Crypto license in other jurisdictions
Standard AML requirements
AML (Anti-Money Laundering) is a set of measures and procedures aimed at combating money laundering and terrorist financing. Several standard AML requirements must be complied with when conducting cryptocurrency activities:
- Customer Identification (KYC). Cryptocurrency companies must conduct a KYC process for all of their customers to verify their legitimacy and check for links to criminal activity.
- Transaction Monitoring. Transactions conducted on the platform should be monitored and limits set on the amounts that can be transferred. This helps identify potential money laundering and terrorist financing schemes.
- Risk-based approach. Companies should assess the risks associated with money laundering and terrorist financing and take measures to mitigate those risks.
- Internal acts. It is necessary to develop several rules that will regulate the procedures and measures to comply with the legislation on combating money laundering, as well as minimize the risks of money laundering.
- Training and education. Companies should train their employees on the basics of AML legislation and anti-money laundering and counter-terrorist financing procedures.
- Record Retention. Records of their customers and their financial transactions should be retained for a specified period to ensure they are available for inspection by regulators and law enforcement.
- Reporting. It is a mandatory requirement to provide reports on their anti-money laundering and counter-terrorist financing activities as required by regulators.
Note that standard AML requirements for cryptocurrency companies may vary by jurisdiction. For example, different jurisdictions may have different requirements regarding the collection and retention of customer information, document retention periods, risk criteria, reporting, and other aspects. In addition, some jurisdictions may impose stiffer penalties and sanctions for violations of these rules than others.
Therefore, it is important to consider and comply with local legal requirements to avoid regulatory violations and sanctions.
What has changed and is relevant for AML requirements in 2025 for Crypto licenses:
- The European AMLA Agency is operating in the EU, which has tightened control over the crypto sector and requires a full AML program from the moment a license is obtained.
- International FATF recommendations include mandatory compliance with the Travel Rule, the transfer of information about the payer and payee between virtual asset service providers (VASPs). As of 2025, many countries are still implementing this standard.
- Technological solutions have become an integral part of AML: real-time monitoring, sanctions screening, and blockchain analytics to identify suspicious transaction chains.
Conclusion
Operating without a cryptocurrency exchange license in almost every jurisdiction means account freezes, bank refusals, and limited access to markets. In crypto licensing in Europe, MiCA has established uniform rules: one license opens the doors to all EU countries, but the capital, AML/KYC, and reporting requirements are the same for everyone. Outside Europe, the UAE, Singapore, Switzerland, and El Salvador have strong positions—the process is faster, the conditions are clear, and taxes are lower. The jurisdiction is chosen not only for the speed of registration, but also for the combination of rules, tax burden, and access to the necessary markets.
FAQ about crypto license?
How to get a crypto license?
There is no single algorithm that is suitable for all jurisdictions. The complexity and duration of obtaining a Crypto License depend on the current legislation and regulatory requirements of each country. If we gather the general requirements, they may concern a certain amount and liquidity of the authorized capital, legal form of business, the reputation of owners, legal address, bank account, compliance with AML/KYC rules, etc.
Different jurisdictions may have different state fees, application processing times, documentation packages, and special requirements.
Usually, it takes 1-6 months to review the application and the process of obtaining a license is as follows:
- Selecting a jurisdiction and registering a company.
- Opening a bank account.
- Selection of specialized employees.
- Preparation of technical equipment and software.
- Gathering and submitting documents required by regulators.
- Waiting for the crypto license application to be processed.
- All entrepreneurs must study the requirements of local regulators, the country’s legislation, AML/KYC rules, etc.
How much does a crypto exchange license cost?
The cost of a cryptocurrency exchange license depends on the jurisdiction you choose and can vary significantly. In Estonia, the state fee is around €10,000, with a minimum share capital for an exchange starting at €100,000.In the UAE, a license to operate in free economic zones such as ADGM or DIFC costs approximately $125,000 plus annual supervisory fees. In Canada, FINTRAC registration and provincial licensing start at $18,000. In addition to the license itself, expenses include capital costs, office space, technical infrastructure, personnel, and compliance procedures.
Which jurisdiction is the most profitable for the crypto business?
Each country or region offers its conditions for crypto companies, and the choice depends on the type of activity, budget, business plan, and development strategy. There is no universal advantageous option, but there are areas that remain the most sought-after in 2025.
If a balance between requirements and costs is important at the start, Estonia is worth considering. It remains popular with crypto businesses, but conditions have tightened since 2022: the state fee is around €10,000, and the minimum authorized capital for an exchange is €100,000, and for custodial services, €250,000.
If free economic zone benefits, quick access to regional and international markets, flexible structuring, and modern infrastructure are important, the UAE is worth checking out. For example, an ADGM license for a crypto exchange will cost around $125,000 plus annual supervisory fees.
MiCA establishes uniform rules for all crypto services in the EU. Companies receive a clear and transparent regulatory regime with uniform requirements for capital, corporate governance, customer protection, and asset storage. This increases trust among users and partners and simplifies interaction with banks and other financial institutions.
In Canada, no minimum capital is required, but the tax burden can reach 31–33% depending on the province. At the same time, since 2024–2025, control over crypto services has been tightened, including expanded AML/KYC requirements.
The choice of jurisdiction is always individual, and it is important to consider not only the initial costs but also the long-term operating conditions: taxation, regulatory climate, access to banking services, and scalability.
Is there any taxation for crypto companies?
Every year cryptocurrency becomes more regulated. And along with the regulations, comes taxation. Crypto assets are still part of a new industry, so not all countries have finally approved the mechanism of tax collection. However, this practice is present in almost every jurisdiction and may differ depending on the legislation of the country.
Let’s look at some examples:
- The UAE is a very attractive country on the tax side for cryptocurrency businesses that trade: the federal income and corporate tax rates are 0%. However, since the beginning of 2018, the government introduced new rules on the tax rate and it is 5%. Your company can be set up on a zero-tax basis, but regular transactions will be subject to 5% VAT.
- Poland and Slovakia have a stricter tax system but have signed bilateral tax avoidance agreements with more than 70 countries.
- In Canada, cryptocurrency activities may fall under the regulation of the Income Tax Act (ITA). The rate depends on the annual income: from 15 to 33%.
Connect with our experts
Our experts will tell you how to do it as quickly and easily as possible.
By clicking the button, I confirm that I have read the privacy policy and consent to the collection and processing of my personal data in accordance with the GDPR rules.