Choice of jurisdiction
A process such as the creation of cryptocurrency exchanges requires the right choice of jurisdiction. The development of the business will depend on the location of your cryptocurrency exchange. This article discusses the most popular jurisdictions with an excellent reputation.
ESTONIA
The main advantages of this country, as a jurisdiction for creating a crypto-exchange, include the following:
- short terms of registration of the organization for crypto business and for registration of a license for activity;
- The relatively inexpensive price of a license to create a crypto exchange;
- loyal legislation of Estonia, which simplifies the process of registration and further activities of the exchange;
- favorable attitude of the country’s financial regulatory system to the activities of the crypto exchange;
- citizenship of the EU countries to create an exchange on the territory of Estonia is not a mandatory requirement;
- income tax and various types of VAT do not apply to cryptocurrency business.
In order to register your cryptocurrency exchange in Estonia and to begin its activity in the future, you need to have the following licenses: for the provision of wallets services for exchange and savings, as well as for the transfer of virtual currency into fiat funds.
MALTA
The main advantages for creating crypto-exchanges in the territory of this republic include:
- legislative acts that regulate the creation and operation of virtual currency exchanges are duplicated in English;
- the state acts as a guarantor of the protection of companies and their users;
- Malta’s stability in politics and finance;
- the indulgence of the Maltese financial regulator;
- international reputation for success and authority in the field of cryptocurrency exchange activities;
- a rather low interest rate on income tax, which is only 5%.
SWITZERLAND
The country has created the most favorable conditions for cryptocurrency activities, as well as business development by creating a cryptocurrency exchange and business promotion.
As the jurisdiction to register a cryptocurrency exchange, Switzerland is a technically equipped and experienced state with a sufficient number of qualified specialists.
Note the benefits of this jurisdiction:
- the loyalty of the country’s authorities and legislation regarding the creation of cryptocurrency exchanges throughout the state;
- a simplified algorithm for creating a bank account for a crypto exchange, which is registered in Switzerland;
- economic and political stability of Switzerland relative to other EU countries;
- the financial regulator protects foreign investors in its territory;
- optimal tax system.
Eternity Law International experts will help you choose the best option, taking into account not only your wishes, but also the peculiarity of the activity.
We will provide you with information on the current status of international law and taxation, as well as prompt in solving financial issues, planning and issuing licenses who have experience and the necessary knowledge on the creation, registration and management of crypto exchanges.