Cryptocurrency is not just a popular trend, but an entire industry that is actively developing and attracting more and more attention from businesses and investors. However, in order to work in this field legally, many companies face the need to obtain a crypto license. A crypto licence is a permit issued by the competent authorities to conduct activities related to cryptocurrencies. And although this document may sound like something complicated, it actually covers a fairly specific list of services.
Cryptocurrency Exchange
One of the main services covered by the crypto license is the ability to legally provide exchange transactions. Exchange refers to both direct transactions between cryptocurrencies (for example, bitcoin for ether) and transactions with conversion to fiat currency (dollars, euros and others).
Companies working in this field provide users with platforms where such operations can be carried out conveniently and safely. Obtaining a license provides not only a legal basis for work, but also adds trust from customers. Users want to be sure that their funds are protected and transactions are transparent and legal.
Cryptocurrency storage (custodial services)
Another important service that requires a crypto license is the storage of cryptocurrencies. This service is relevant for those who want to entrust the protection of their digital assets to professionals.
Custodial companies provide secure wallets and offer additional protection measures: multi-signature, key backup, etc. This is especially important for large investors who are afraid of losing funds due to hacking or other risks.
Such services are often used by banks, investment funds and even large corporations. In this case, the license confirms that the company complies with strict requirements for the security and protection of its customers’ data.
Asset management
A crypto license allows companies to offer asset management services. These can be investment funds that use cryptocurrencies as the basis of their portfolio, or customized solutions for clients.
The essence of such services is that professionals take responsibility for market analysis and management of client funds in order to ensure a stable income. This requires special skills and a deep understanding of the market, so having a license confirms that the company really has the right to engage in such activities.
Conducting ICO and IEO
Although the ICO (Initial Coin Offering) market has become less popular in recent years, this service is still relevant. The license allows companies to legally organize the issuance of their tokens and attract investments. An analogue of ICO is IEO (Initial Exchange Offering), where tokens are sold through crypto exchanges.
Organizing such events without a license can lead to serious fines, so companies get permits in advance to avoid problems with regulators. It also gives investors confidence that the project fulfills all legal obligations.
What are the advantages of cryptolicence?
Mentioning the term crypto license in a business context immediately increases the level of trust in the company. This means that the business is ready to work within the framework of the law and comply with all necessary rules. But that’s not all. The license allows you to:
- To participate in international activities, as many countries require legalization to work with their citizens.
- To open bank accounts and use the services of traditional financial institutions, which is especially important for companies operating in the “gray zone”.
- Expand the customer base as more and more people choose only licensed platforms.
Obtaining a crypto license is not only a requirement of the law, but also a way to show customers and partners that the business operates transparently and reliably. This is especially important for large players who need to maintain their reputation.
The crypto license covers a wide range of services: from the exchange and storage of cryptocurrencies to asset management and ICO. It helps companies to conduct legal activities and gain the trust of customers. In the context of rapidly changing legislation in the field of cryptocurrencies, the availability of such a document becomes not just an advantage, but a necessity for successful business.