Top 3 countries with the lowest requirements for obtaining a crypto exchange license

Most investors invest in cryptocurrency because this is a profitable commercial investment. But this requires a license, and the question arises of which country has the minimum requirements. This article will examine countries with the most minor requirements for obtaining a crypto exchange license. We hope that this will be helpful to you.

Czech Republic

The Czech Republic is one of the most attractive EU countries for opening a crypto business because only the National State Bank controls the financial sector. Today in the Czech Republic, there is no special regime for obtaining a license. Still, providing services related to crypto assets will be considered a licensed activity with the need to register a company in the Trade Licensing Register.

To register a company, you do not need a corporate account, and the minimum authorized capital is only 1 CZK for one shareholder. In addition, the state regulatory framework does not have special requirements for registering a company associated with virtual currency. Therefore, you can open a crypto-exchange within just 1-3 weeks, during which you will go through the entire registration process, including obtaining a crypto license entered in the Trade Licensing Register.

However, a company associated with cryptocurrency activities falls under FAU's (financial intelligence) supervision, so it is necessary to comply with the AML and KYC policy requirements.

The main advantages of Czech jurisdiction:

• short term for obtaining a license – up to 3 weeks;

• no requirements for authorized capital;

• there are no specific requirements for management and staff;

• attractive taxes;

• initial costs for opening a company – 2000-7000 euros.

Since there are no separate types of crypto licenses in the Czech Republic, and the obtained trading license belongs to the type of activity No. 81 (provision of services related to cryptographic tools), then as a legal entity, your company has the right to:

• exchange of cryptocurrency for fiat funds (and vice versa);

• exchange of one type of cryptocurrency for another type;

• opening of crypto wallets and storage of private keys – storage service;

• service for the transfer of cryptocurrency.

Thus, with a trading license, your firm can engage in several activities related to virtual currency.

Georgia

This country is also very beneficial for creating a crypto-exchange, especially in the territory of the FIZ, where you need to register a company. Consider the main advantages of this jurisdiction.

Favorable environment for cryptocurrency activities

Georgia is a very loyal state to crypto activities. Thanks to low prices for energy costs, mining is developing, and crypto mats are actively working. Taxes for crypto activities are small, the laws are loyal, and obtaining a license is simple, following a few regulator rules.

Short term license

You can get a license in about 2-3 weeks, saving a lot of time (compared to other countries, where it can take several months to a year or more), so you can start doing crypto activities faster.

No residency requirements

In Georgia, a citizen from any country can open a crypto-exchange, and there is no need to open an actual office; having a legal address and doing business is enough, allowing you to save on office maintenance.

No requirements for authorized capital

This country has no set minimum capital for opening a crypto exchange. There can be any amount on the account to start the activity.

Availability of PPE

Since 2008, free industrial zones have been created in Georgia, which provide many advantages for the crypto business, including the absence of income tax, VAT, and property tax. It is a significantly costly part of the company.

Slovakia

The country's National Bank does not control cryptocurrency-related services in this jurisdiction, but mandatory rules apply. Therefore, the crypto business does not need the regulator's consent or a license from NBS. But all companies whose activities are related to virtual currency are required to register with the Trade Licensing Authority. After the company's registration (or later), depositing a small amount of the authorized capital – 5000 euros is necessary.

The head of the company must be a citizen of Slovakia or the EU, and you must also follow the AML and KYC rules applicable to licensing. There are 2 types of crypto licenses in Slovakia:

• mediation for exchange for payment: cryptocurrency – fiat, fiat-cryptocurrency, cryptocurrency – cryptocurrency;

• maintenance and storage of virtual currency (digital wallets).

The main advantages for crypto businesses in this country are as follows:

• terms: company opening 3 weeks, licensing – 5 weeks;

• no currency control restrictions;

• the movement of funds is not limited;

• tax from 22% can be reduced to 0.5% if the agency scheme and proper accounting are applied.

Thus, Slovakia is quite an attractive jurisdiction for creating a crypto exchange. Suppose your company has any questions about obtaining a crypto license in one of the countries. In that case, you can contact experienced and qualified specialists at Gofaizen&Sherle, where you will receive comprehensive information on all your questions.