License for exchange of cryptocurrency (2024)

The National Bank of Croatia adheres to the following idea: the assets forming cryptocurrency cannot be considered financial, but the circulation of electronic money in the country cannot be considered illegal, cryptocurrency exchanges are not prohibited.

The absolute majority of Croatian financial experts consider it necessary to introduce regulatory procedures at the legislative level and even licensing of ICO activities.

In 2017 Estonian government set course for digitalization of economy and started creating favourable climate for the development of fin-tech companies and start-ups. One of the outcomes of this policy was adoption of the amended version of Anti-Money Laundering Act, where the terms “virtual currencies” (cryptocurrencies fall under this category) and “electronic cash-box” were introduced. The main legislative innovation was the establishment of a special permission (a license) which allows to perform cryptocurrency exchange, including exchange for traditional or fiat money.

It should be pointed out from the outset that at this moment state authorities have significantly neutral position in relation to obtaining license for exchange of cryptocurrency in Hong Kong. It means that the issue of cryptocurrency exchange licensing is in suspension. However, such position of the regulator may be transferred from amorphous to very specific form.

Japanese legislation on payment services was significantly modified. Since April 2017 amendments to the financial legislation of the country entered into force. Issue concerning exchange of cryptocurrency to traditional settlement funds was regulated for the first time ever. Persons intending to provide such services are obliged to obtain the license for exchange of cryptocurrencies.

The United States of America are the most attractive state for doing business. However, given significant differences in legal regulation depending on the state, a lot of projects experience significant difficulties when operating in the United States.

A small town called Madeira, or Madeira Beach, geographically is a part of the Florida state. The local municipality has not clear regulatory position for: Bitcoin circulation is allowed and the need for licensing is not defined.

The New Zealand digital platform is significantly developed due to the clear investment climate and the precise legal regulation expressed in licensing activities. Thus, the New Zealand Financial Markets Authority (FMA) relates transactions with cloud assets to securities, which puts them under regulatory control of two legislative acts:

• On Financial Markets,
• On Financial Service Providers.

Any variations of cryptocurrency are equal to the types of securities, so a license for cryptocurrency in New Zealand is not required. In this case, it is necessary formally to license the activity in accordance with which the the cryptocurrency market counterparties provide services to customers.

At the present moment Singapore is one the jurisdictions that establised regulation of cryptocurrency exchanges. During 2014-2018 the national regulator (MAS) issued interpretations expressing its position in relation to the cryptocurrencies, operating the ICO, as well as licensing the cryptocurrency exchange in Singapore, but at 2019 a new Payment Service Act came in force that introduced 2 types of licence: small payment institution and major payment institution. Nowadays, those who operate the exchange of cryptocurrencies shall obtain license in Singapore. Furthermore, if the company deals with cryptocurrencies that may be classified as securities, such entities shall entail license of stock exchange.

License for cryptocurrency exchange in the USA entitles its owners to operate with exchange of cryptocurrencies. Except crypto exchanges, all other applicants intending to provide payment services are interested to obtain such license.

Licensing of cryptocurrency exchange itself is sufficiently patient process. We will consider everything in details hereunder.

The United Kingdom of Great Britain and Northern Ireland currently represents a powerful platform for the operation of cryptoexchange exchanges and cloud mining products subject to licensing of cryptocurrency operations. However, there are a lot of legal uncertainties, which create difficulties in assigning cryptocurrency to one of the existing objects of civil rights.

Formally, the actions of cryptocurrency exchanges in the UK have not been subject to state licensing, and a license for cryptocurrency in the UK is not required. However, several years ago, the Financial Regulation and Control Department created the Innovation Hub platform, in which crypto-players and interested persons were given the opportunity of legal support of a recommendatory nature. Participants do not need to register, and as a result of this a vague situation emerged, in which the UK cryptocurrency license temporarily took the backseat.