Getting a cryptocurrency license in UK is a popular procedure for anyone who wants offering services connected with digital assets on state territory. Cryptocurrency is regulated in UK by AML/CFT Act. FCA is responsible for overseeing operation of structures dealing with cryptocurrencies, so issuing such license in the United Kingdom is carried out by FCA. Next, we will consider the procedure for regulating crypto activity there in more detail.
Cryptocurrency sphere controlling in UK
To enter local niche, you must get a UK cryptocurrency license from FCA. Main factor in cryptocurrency buying here is ban on crypto assets use to finance illegal deals. To open a crypto business, you should not just follow the AML/CFT rules, but also create and put into operation a mechanism for implementing the AML/CFT policy in your own company.
The regulator controls all parties involved in the purchase and sale of cryptocurrency in the state using the “Know Your Customer” (KYC) procedure. Cryptocurrency license makes it possible providing various functions of the company in an appropriate way.
Types of crypto authorizations in the UK:
1) Cryptoasset exchange provider
It includes a company or one professional practitioner providing, in the course of doing commercial deals, one or a combination of following:
- exchange, organization or establishing arrangements for cryptoassets exchange for fiat money or vice versa;
- exchange, organization or establishing arrangements for exchange of one cryptoasset for another;
- management of equipment that uses automatic processes to exchange cryptoassets for fiat funds or vice versa.
2) Custodian Wallet Providers
Firm or a practitioner providing protection and administration services within the framework of its own work:
- keeping their clients’ cryptoassets;
- keeping their customers’ encrypted private keys for storing and transferring cryptocurrency, if required.
Requirements for obtaining a cryptocurrency permission in the UK
- Organization must be registered in the UK.
- Enterprise must own an office on the territory of the state.
- The person receiving the license must maintain in the place of business all records in relation to transactions that have been made by the licensee.
- The applicant must hire a director-resident and an anti-money laundering officer. It is imperative for the candidate to verify that directors have needed experience to manage the business, taking into account the educational qualifications and professional certification of persons appointed to senior positions.
- No requirement for the min authorized capital amount.
The specialists of Eternity Law International have scrupulously researched the main points of the regulation of the cryptocurrency sphere within the United Kingdom. Our team will be glad to provide you with services of cryptocurrency firm registration in the UK, in obtaining an appropriate license, as well as in recruiting employees and finding a place for an office.
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