Get Crypto License
Costs and Timeline

How to get a crypto exchange license?
Depending on the jurisdiction the process of getting a crypto exchange license will be vastly different. One will eventually need to incorporate a legal entity, hire a compliance officer, implement robust crypto license compliant KYC/AML procedures and obtain necessary crypto licenses.

Before jumping into a process, speak to one of our professionals and get the costs and pricings of a crypto license.

What are the best jurisdictions for a crypto exchange license?
When considering the best jurisdictions for obtaining a crypto exchange license, there are several factors to take into account. This includes the regulatory crypto framework, ease of doing business, taxes, the cost of operations and accessibility to crypto friendly banks.

How to offer crypto on- and offramping?
Offering crypto on- and off-ramping is a crucial aspect of running a successful cryptocurrency exchange. Crypto on-ramping refers to the process of allowing customers to deposit fiat currency into their exchange account and convert it to cryptocurrency. Conversely, crypto off-ramping involves customers withdrawing cryptocurrency from their exchange account and converting it to fiat currency.

One way to offer crypto on- and off-ramping services is by partnering with banks and payment providers. This allows the exchange to leverage the existing infrastructure of these institutions, which can simplify the process of converting fiat currency to and from cryptocurrency. However, it's important to note that banks and payment providers may have their own regulatory requirements that the exchange must adhere to. Mainly, this is the existence of a crypto license in an accepted jurisdiction.

Our professionals have a lot of experience in setting up crypto friendly payment railways for our clients. To get an offer, get in touch with us.

What is a 'Crypto Company Registration'?
A crypto company formation refers to the legal process of establishing a business entity within the cryptocurrency industry. It involves registering a company with the relevant regulatory authorities, obtaining necessary crypto licenses and permits, and complying with legal requirements. The process is crucial for any entrepreneur seeking to enter the crypto industry and requires professional guidance to ensure proper adherence to crypto regulations.

Since requirements for crypto company formations change almost daily, we monitor crypto friendly jurisdictions and compare the regulations of crypto in the EU countries, as well as crypto regulations in offshore jurisdictions regularly.

Assistance in Crypto Company Formation
We assist entrepreneurs in the crypto industry by providing assistance understanding which jurisdiction to choose depending on the type of business activity that is going to be pursued. We assist in the full process, starting with understanding which crypto friendly jurisdiction suits the underlying business model, followed by the incorporation itself, drafting legal documents, such as articles of incorporation, Legal Opinions, partnership agreements and much more. All of this is essential in establishing a successful and legal crypto business structure.

How to get a crypto license?
To get a crypto license one should set up a crypto company and get a crypto license. We always guide our clients through the full process of obtaining necessary licenses and permits, as well as ensure compliance with regulatory requirements such as Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. This is essential to establish a legitimate business structure within the cryptocurrency industry.

Contact us today to schedule a consultation and learn how we can help you establish a successful crypto business.

How to set-up an Offshore Crypto Company with License?
To set-up an offshore crypto company with a license you need to first choose the best crypto friendly offshore jurisdiction, incorporate and apply for according licenses. We at LegalBison are assisting our clients in all of these steps, and can draw on the experience of our many clients in the past.

What are the benefits of an Offshore Crypto Company?
Offshore companies offer several benefits to cryptocurrency businesses, including low taxes, asset protection, lower regulations, lower operating costs and greater privacy than in non-offshore jurisdictions. Additionally, obtaining a license to operate legally provides the business with greater credibility, and the options for fiat on- and off-ramping, making it more attractive to investors and customers.

What is the process of starting an Offshore Crypto Company?
Starting an offshore crypto company involves several steps that may vary depending on the specific offshore jurisdiction and the type of company you want to set up. The exact process and costs always depend on the jurisdiction and the underlying services the company will be providing. We at LegalBison assist clients in a full turnkey solution and help understand which crypto jurisdiction is the best for the specific project.

What are the requirements for Starting an Offshore Crypto?
When starting an offshore crypto company you should clearly define the services your company will provide and make sure you understand the regulatory implications of these. Based on this, we will be able to guide you which jurisdiction makes sense for you, focusing on the legal requirements and involved costs.
We navigate our crypto clients through the legal requirements and assist in making sure all regulations are met properly. We usually assist in preparing all regulatory paperwork involved and set up the crypto company in offshore jurisdictions.

What are the regulations for Offshore Crypto Licenses?
The regulatory frameworks are very different from jurisdiction to jurisdiction. While some offshore jurisdictions follow FATF guidelines and are very strict, others are great for token issuances (ICOs) for example. Some crypto jurisdictions give you the chance to get licenses for issuing derivatives (options trading) or run a crypto exchange, while others prohibit this at all. We will guide and assist in obtaining necessary licenses: As an example, the Cayman Islands require crypto companies to obtain a virtual asset service provider (VASP) license, which regulates the custody, buying, selling, and trading of cryptocurrencies. To make sure you chose the right offshore crypto license - get in touch with our professionals.

What Crypto Friendly Jurisdictions are the best for issuing a token?
The best jurisdiction for issuing a token will depend on a variety of factors, mainly the regulatory environment, tax implications for underlying business, ease of doing business, and access to investors. However, from our experience some jurisdictions are more commonly used for token issuance than others.

Estonia, for example, was a popular jurisdiction for token issuance, with a supportive business environment and a streamlined e-residency program that makes it easy to establish a legal entity. Today entrepreneurs move to other jurisdictions, as the requirements are very strict in Estonia.

Other jurisdictions that are commonly used for token issuance include Gibraltar, SVGs, and Switzerland. Each of these jurisdictions has its own unique advantages and considerations. It is important for entrepreneurs to carefully evaluate their options before choosing a jurisdiction for token issuance.

When is a crypto token considered a utility or security?
To understand when a crypto token is considered a utility or security, it's important to first understand the difference between a utility token and a security token.

In very general terms utility tokens are digital assets that are designed to be used within a specific platform or ecosystem. These tokens are not intended to be used as investments, but rather as a means of exchange within a particular network or platform. Utility tokens are often used to access certain features or services within the platform or to pay for goods and services.

Security tokens, on the other hand, are digital assets that are designed to represent ownership in a real-world asset or entity. Security tokens are subject to the same regulations as traditional securities and must comply with securities laws.

This means that the functionality of the token is a key factor in determining whether it is a utility or security. If the token is designed primarily to be used within a specific platform or ecosystem and does not have investment value, it is likely to be considered a utility token. If the token is designed to represent ownership in a real-world asset or entity, or has investment value, it is likely to be considered a security token.

It is fundamental to get a Legal Opinion on the nature of your token to ensure regulatory compliance. If the token is subject to securities laws, it must comply with all relevant regulations, including registration and reporting requirements. If the token is considered a utility token, it may be subject to different regulations, such as anti-money laundering (AML) and know-your-customer (KYC) requirements.

The way the token is marketed can also be a factor in determining whether it is a utility or security. If the token is marketed as an investment opportunity, or if the issuer promises a return on investment, it is likely to be considered a security token. If the token is marketed as a means of accessing a platform or ecosystem, it is likely to be considered a utility token.

What is a Legal Opinion for an ICO?
A Legal Opinion (or often referred to as ‘Legal Memorandum’) for an ICO is a formal written statement prepared by a legal professional that assesses the ICO's compliance with relevant laws and regulations. It mainly focuses on the nature of the token itself.

Often the howey-test is used for this process. It aims to understand if according to relevant crypto laws and regulations the underlying token is considered a security, or would be classified as a utility token.

A Legal Opinion typically covers areas such as securities laws, anti-money laundering (AML) and know-your-customer (KYC) regulations, focusing on other relevant laws and regulations in the jurisdiction where the ICO is being offered.

Is a Crypto License needed for an ICO?
The need for a crypto license when launching an initial coin offering (ICO) depends on the specific jurisdiction and regulations in place. In some cases, a crypto license may be required for issuing a token, while in others, it may not be necessary.

However, regardless of whether a license is required or not, it is always advisable for ICOs to seek legal crypto advice and ensure compliance with relevant regulations. This includes registering the ICO with regulatory authorities, adhering to know-your-customer (KYC) and anti-money laundering (AML) policies, and providing transparency around the use of funds raised through the ICO.

The regulatory crypto landscape for ICOs is still evolving, and it is important for businesses to stay up to date on any changes to regulations or crypto licensing requirements in their jurisdiction. By doing so, they can mitigate legal and financial risks and ensure a successful launch of their ICO.

Why is a Crypto Company Registration important when doing an ICO?
A legal entity provides liability protection to the founders and team members of the ICO project. This means that if there are any legal disputes or claims against the ICO project, the legal entity can shield the individuals involved from personal liability. Without a legal entity, the individuals involved in the ICO project may be held personally responsible for any legal or financial issues that arise.

Why is a Legal Opinion important when doing an ICO?
The legal opinion is important for an ICO issuer to demonstrate to potential investors that the ICO is legitimate and complies with relevant laws and regulations. This can help to build trust with investors and increase the likelihood of a successful ICO.

In addition to providing assurance to investors, a legal opinion can also help the ICO issuer to identify and address any potential legal issues before launching the ICO. This can help to avoid costly legal problems down the road.

How to start an NFT Company?
One of the first steps in starting an NFT company is to form a legal entity, such as a corporation or limited liability company (LLC). This provides liability protection for the owners of the company and ensures that the business can enter into contracts, hire employees, and own assets. It is important to choose appropriate legal structure and jurisdiction for the company.

How to limit personal liability when starting an NFT company?
In some cases, NFTs may be considered securities, which are subject to strict regulations under federal and state securities laws (globally). Whether an NFT is considered a security depends on the specific facts and circumstances surrounding the offering. It is important to incorporate a company and then get a Legal Opinion on the nature of the token to ensure that any NFT offering complies with all applicable securities laws and regulations.

How to sell NFTs legally?
If the NFT does not have any functionality, it will almost certainly not be considered a security. Still, if you plan to sell NFTs it is important to ensure compliance with securities laws. The easiest way to do this is by the formation of an NFT company and having the entity hold the IP rights of it. Our processionals are well versed and can help in the whole process of this.

What crypto regulations are applicable to NFT companies?
As NFTs are a relatively new concept in the crypto world, there is no specific regulation that applies solely to NFT companies. However, there are some existing regulations that may apply depending on the specifics of the NFT being sold and the jurisdiction in which the company operates.

When is an NFT a security or utility?
The legal classification of NFTs is still a topic of debate, but it is generally determined by the specific characteristics of the NFT in question.

If an NFT is marketed primarily as an investment, it may be considered a security. On the other hand, if the NFT is marketed primarily for its utility value (such as granting access to a platform or service), it may be considered a utility.

If buyers of an NFT expect to profit from their purchase based on the efforts of others (such as the creator or a third-party promoter), the NFT may be considered a security. On the other hand, if buyers purchase the NFT for its utility value or because they simply enjoy owning it, it may be considered a utility.

How are crypto NFT companies taxed?
Crypto NFT companies are subject to various tax regulations and must comply with them to avoid penalties and legal issues. The taxation of NFTs varies depending on the jurisdiction where the company issuing these is registered. Generally, NFTs are considered as assets and are taxed accordingly.
Crypto NFT companies are subject to corporate income tax on their profits. The tax rate may vary depending on the jurisdiction

What legal documents does an NFT company need?
An NFT company needs to have legal documents in place to govern the sale of NFTs to buyers. One of the key legal documents required is the terms of sale, which sets out the terms and conditions under which the NFT is being sold to the buyer. This document outlines the ownership rights of the buyer in relation to the NFT, the conditions for transfer of ownership, and any warranties or representations made by the NFT company. Other important legal documents should be discussed depending on the exact underlying project.

What contractual agreements are needed for an NFT crypto company?
In general, having a suite of legal documents in place can help protect the NFT company and ensure that the sale of NFTs to buyers is conducted in a lawful and transparent manner. Speak to our professionals to discuss how we may help.

How to get a Legal Opinion on an NFT?
Getting a legal opinion on an NFT will be a crucial step in ensuring compliance with applicable laws and regulations. The legal opinion should cover presumably securities and anti-money laundering laws. A crypto legal opinion may also address the specific characteristics of the NFT, such as its use cases, the type of asset represented, and the terms of the sale.

When assisting our clients in preparing a Legal Opinion we require a basic understanding of the token at hand. Mostly in the form of a white- or litepaper. We may also review this document and give you guidance.

Does a DeFi Company need a crypto license?
Since DeFi companies provide financial services (often) without the need for traditional intermediaries and the regulatory landscape is very unclear it is especially important to have a legal entity to limit personal liability. While DeFi companies may not handle fiat currencies, they may deal with cryptocurrencies, making it important to consider whether a crypto license is required.

In many jurisdictions, DeFi companies are not currently subject to specific regulations or licensing requirements. It is important to understand that certain AML and KYC obligations still apply and fall upon the provider of these services.

To speak about the details of the requirements, please indicate when requesting a consultation that you are running a DeFi Company and need corporate assistance.

What legal documents are needed for a Defi company?
As already mentioned, there may be some legal grey areas in terms of what legal documents are required. However, since the company provides access through its interface (website) to the protocol it's crucial to limit personal liability of the shareholders/founders, a DeFi company should have in place a set of documents to ensure compliance with regulations and to protect both the company and the users.

What is DeFi KYC Regulation?
Since DeFi is a growing area in the crypto industry, regulatory authorities are beginning to take notice of this. Even though KYC and AML is in contrast to the open and permissionless nature of many DeFi protocols, where anyone can participate, the implementation of KYC regulations for these companies will depend on the jurisdiction in which the protocol operates.

Some jurisdictions have already implemented KYC and AML regulations for cryptocurrencies and crypto businesses, and it is likely that DeFi protocols will eventually be subject to similar regulations.