Cryptocurrency exchange license in the UK

The attitude towards the crypto industry is very different in different countries. The UK government has managed to appreciate all the benefits of using blockchain technology, so all kinds contribute to the development of this industry. Crypto license in the UK is advisory, so many companies are limited to simply registering and paying taxes. But practice shows that a company can achieve great results with a work permit.

Why do you need to get a work permit?

As already mentioned, the UK’s crypto exchange license is advisory. The country’s government has created the Innovation Hub platform, where various companies and crypto enthusiasts can receive legal support, but registration here is advisory.

However, if you want to work legally, you need to register your company and be sure to pay taxes.

Why do companies seek a work permit if having a license is a recommendation? There are several reasons for this. First, the heads of such companies understand that the legal situation can change at any time. If the state authorities say that every company must obtain a license without fail, this will significantly burden the state bodies.

In addition, the cryptocurrency exchange UK has an excellent reputation. So, a company that has received a work permit here is more prestigious. The level of trust in such organizations is much higher, which is very convenient when looking for investors and new clients.

Obtaining a work permit in this jurisdiction is much easier than in other countries, but it makes it possible to work in the UK and other jurisdictions.

Thus, if you want to work legally and successfully develop and attract new investments, you have to obtain a crypto license in Britain.

Control of the cryptocurrency sphere in the UK

The FCA controls cryptocurrency activity in this jurisdiction. Government agencies generally only seek to regulate some aspects of crypto activities. Still, it prohibits using this asset for illegal activities (fraud, money laundering, or financial terrorism).

The government of this jurisdiction is interested in the development of this industry. However, it makes sure that the financial assets of users are safe.

Crypto license availability

You can quickly get a crypto exchange license in the UK if you are willing to work honestly and openly. This jurisdiction does not impose complex requirements on organizations, but it must comply with the KYC policy and ensure the safety of clients’ assets.

Thus, obtaining a work permit is very high if you use software that protects financial assets and clients’ data.

Taxation of crypto activities

Every crypto company is required to pay taxes. The tax rates here are among the lowest in Europe, which makes obtaining such a license very attractive.

So, crypto organizations are required to pay the following fees:

  • Corporate tax;
  • Value-added tax.

At the same time, taxation of such organizations is carried out in the same way as many other companies. Thus, the UK is an up-and-coming market for every crypto organization.

The amount of taxes depends heavily on the type of activity of the crypto company, the amount of income, and the services it provides. Before obtaining a crypto license, it makes sense to conduct a consultation to understand how much taxes your company will pay.

Securities Law

Why study securities law? The government of this jurisdiction has divided all tokens into 3 large groups:

  • Exchange tokens are cryptocurrencies. It includes Bitcoin, Ethereum, Litecoin, and many others.
  • Tokens with the properties of securities – may give the right to a share of the profits or any other property rights.
  • Utility tokens – give access to specific platforms and certain goods or services.

Thus, if you are using tokens with securities properties, you need to understand how this market works in the UK.

It is worth saying that the government of this country is interested in developing this market. Therefore it establishes straightforward and understandable regulation rules. You will not have any particular problems with selling or purchasing tokens with the properties of securities.

If you use such assets, we advise you to seek the help of our company’s lawyers to understand what problems you may encounter and how best to organize the work.

Requirements for organizations

You need to meet certain requirements to obtain a cryptocurrency exchange license in the UK. As already mentioned, this jurisdiction does not set complex requirements for crypto organizations:

  • The company must be registered in that jurisdiction;
  • The office must be in the country;
  • The director must be a resident.

This jurisdiction does not impose requirements for the authorized capital. It allows both large companies and small startups to work here. However, large and small companies must comply with KYC policies and combat money laundering and financial terrorism. Before obtaining a license, you must develop anti-fraud mechanisms.

Types of crypto licenses

Today you can get 2 types of crypto licenses – exchange and wallets. They need to be discussed in more detail.

Exchange of crypto assets

Every company or private specialist engaged in crypto asset exchange must obtain a work permit. It includes organizations that exchange crypto for crypto or crypto for fiat. Also, this type of license must be received by operators of equipment management that perform the exchange of assets automatically.

Crypto wallets

It would be best if you got a license for crypto wallets to profit from holding crypto assets. This category includes firms or private practices that keep users’ financial assets and encrypted private keys.

The process and timing of obtaining a work permit

Obtaining a crypto license is a rather lengthy process, which takes an average of 3 months to six months. It is because you have to go through several rather complicated but very important steps:

  • Company registration;
  • Opening a bank account;
  • Prove that the company is ready to comply with the KYC policy and combat money laundering.

In addition, you need to prepare a package of documents that includes all the provisions of the company’s work, from a business plan to a risk assessment. It is worth saying that the preparation of documents must be approached very responsibly, so it makes sense to seek help from the lawyers of our company immediately. They will help you complete the necessary paperwork, check the availability of the essential documents, and how correctly they are executed.

If all the documents are in order, you can get a license quickly, and there will be no big problems with this. But, if the state authorities find errors, they can return them for revision. If you want a license to be as easy and fast as possible, it makes sense to seek the help of qualified lawyers.

Our services

CryptoLicense is a company that provides legal services and assistance in obtaining a crypto license. Thus, our services include the following:

  • Consultation;
  • Assistance in paperwork;
  • Checking the company’s readiness for licensing;
  • Office search and more.

In the first stage, our experts study your company’s activities and provide a full consultation, so you should be prepared because this will take a lot of time. Then, fruitful work begins to create the necessary documents and improve your company to meet the requirements of regulators.

You can create a power of attorney for our specialists, who will then conduct business on your behalf. This will simplify your work as much as possible, so your participation in this will be minimal. So, our specialists will be able to represent your interests in government bodies, help you find an office and provide other services.

Conclusion

Interest in cryptocurrencies in this country is very high, so many companies tend to work in this jurisdiction. If you want your business to thrive, it makes sense to get a license. To simplify the process of obtaining a permit, you should contact the specialists of our company. It will help keep your involvement in the process to a minimum.

 

FAQ

Yes, you can legally use crypto licenses as a payment method for mining or trading. Currently, this jurisdiction has pretty simple and understandable rules for regulating this industry.

No, having a license is a recommendation, but you must be registered and pay taxes.

Yes, companies that profit from the use of crypto assets are required to pay taxes. We talked about tax rates a little higher.