Cryptocurrency licenses are the future for many companies that want to work with cryptocurrencies in the legal sector.
The cryptocurrency sphere has long been part of the systems of many companies. Banks, financial institutions, states, social networks are already working with digital assets. And also try to integrate them into their systems. In addition, there are many crypto companies that have focused their activities exclusively on digital assets. The financial turnover of such companies is very large. In this case, a question arises. Do all companies that are somehow connected with cryptocurrency exist according to some legal rules? Or maybe they are illegal? Let’s see if there are cryptocurrency licenses, and who has already been able to get them?
Cryptocurrency licenses: what is it?
First of all, it should be said that, of course, cryptocurrency licenses exist. They are issued by regulators (authorities that control the issuance of licenses to different companies). So far, there are not many countries in which a company can obtain a license. But what is a license anyway?
In fact, this is a permission from the local authorities for the official work of a particular crypto company in the territory of their country. The crypto company is protected by law, pays taxes and conducts business in the same way as, for example, any grocery store in Germany.
Which countries issue licenses?
In fact, not many states can approve completely legal activities on the territory of their country for a crypto company. All such countries are conditionally divided into 2 types:
1) Small states that have either already legalized cryptocurrencies themselves, or offshore countries. For example, El Salvador, which was the first to fully legalize bitcoin in 2021. Offshore companies include the Cayman Islands. Their licenses are not highly valued among the giants of cryptocurrency firms.
2) Large states. This type includes large states with a reliable economic structure that have not yet legalized cryptocurrencies, but allow the possibility of official operation of crypto companies on the territory of their country. Such countries include Switzerland, Liechtenstein and the United Arab Emirates – the most popular crypto zone at the moment. It was in Dubai and Abu Dhabi that crypto companies began to receive their first licenses.
Which companies have received cryptocurrency licenses?
To begin with, let’s give an example of large cryptocurrency exchanges that are licensed to operate in the UAE. This is Binance, BitOasis.
There are also some so far small crypto companies that managed to get the first licenses for custodial storage of cryptocurrency in Dubai (bitcoin storage company Simba Storage). And there are also companies that have received a license for over-the-counter cryptocurrency exchange in the same jurisdiction of the UAE.
Thus, you can be sure that, in fact, many states, including Russia and Germany, will also soon begin issuing activity licenses for cryptocurrency companies. In this case, the interaction between customers and companies that provide services is simplified.
The crypto future has already arrived. In some 10 years, all cryptocurrencies will become legal and a new type of payment will dominate the international market.