LICENSING TERMS:
- Register a company in the UK; establish an office
- Register with the FCA.
- Get registered as a taxpayer. When exchanging cryptocurrencies, corporate tax is withheld, but VAT is not charged (as with mining).
- Open a corporate bank account to conduct transactions with cryptocurrencies and convert them into fiat funds.
- Collect documents for obtaining a license for the exchange of crypto-currencies, taking into account the requirements of AML / KYC standards.
AS A REGULATED PERSON, YOU MUST:
- Conduct a money laundering risk assessment based on your services, products and customer base.
- Document an AML policy that describes your internal anti-money laundering procedures.
- Ensure that all employees have completed AML training.
- Keep an annual report for audit purposes.
- Adopt a risk-based KYC process and apply an appropriate level of customer due diligence.
Types of cryptocurrencies
It is necessary to understand which tokens are regulated and which are not, in order to understand what types of activities are subject to legal acts.
TYPES OF CRYPTOTOKENS
1.Regulated tokens
Investment: “specified investment” under the Regulated Activities Order (RAO), excluding electronic money. They may grant ownership, the return of a certain amount of money, or the right to a share in future profits. They may be transferable securities or other financial instruments. tools according to the MiFID II Directive.
2.Unregulated tokens
Any tokens that are not investment or electronic money tokens are unregulated. This category includes utility tokens that can be exchanged for o to a specific product or service (provided using the DLT platform).
This category also includes tokens such as bitcoin, litecoin and their equivalents, often referred to as “cryptocurrency” or “payment tokens”. They are decentralized and designed to be used as a medium of exchange.
CONCLUSION
Obtaining a crypto license in the UK is a promising solution, since the United Kingdom is today considered one of the most powerful platforms for the functioning of crypto-currency activities. The United Kingdom is seen as a platform for launching blockchain startups and holding ICOs in the EEA countries.
If you need a license to exchange cryptocurrencies or build a business structure for mining cryptocurrencies, then Astorts specialists will develop the best solution for you.
We can advise and provide the client with a solution both on a specific issue and take a comprehensive approach to the development of a large project according to the customer’s vision and provide legal support for blockchain projects of any complexity.
We provide legal advice on the legal status of cryptocurrencies and provide legal support for blockchain projects in different jurisdictions.
