Cryptocurrency exchange license in the United Kingdom
United Kingdom is considered to be an innovative hub for digital businesses, such as mining, cryptocurrency exchange and electronic money transactions. What’s more, UK is also seen as a beneficial place for blockchain startups.
- Register a legal entity (with a real office) to which the existing taxation rules are applied – when exchanging cryptocurrencies companies pay a corporate tax, but VAT, like during mining, is not introduced for them;
- Open bank accounts for operations and cryptocurrency transactions;
- Prove that the company complies with the requirements of anti-money laundering and terrorism financing prevention legislation – the British Treasury offered to apply it to the business that opens client accounts in cryptocurrency and converts it into fiat currencies
- Prepare a package of documents for obtaining a license for the cryptocurrencies exchange – with a description of risks, a business plan, policies according to AML / KYC legislation, etc.