Creating New Crypto Exchange - Legal Concerns

aftermkt

copper member

Activity: 33

Merit: 0

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

What legal things i absolutely needs to get done before starting a centralized crypto exchange ?

Can't i just start it without doing any legal stuffs and market it right away ?

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem if i dont have a legal company ?

Also if i just say my company is based in "X" country and later register officially it will that be ok ?

at a minimum, you would need

- corporate formation
- electronic money transmitter license or securities license
- client side agreements, terms of service, privacy policy etc
- AML/KYC procedures and policies

we have created a handful of exchanges in the past: email me with any questions: [email protected]

coinsclone

newbie

Activity: 189

Merit: 0

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

What legal things i absolutely needs to get done before starting a centralized crypto exchange ?

Can't i just start it without doing any legal stuffs and market it right away ?

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem if i dont have a legal company ?

Also if i just say my company is based in "X" country and later register officially it will that be ok ?

Just Check which country is legal to start the crypto exchange, then you start without fear.
But start the decentralized crypto exchange business.

Read this article: Decentralized Crypto Exchange Platform

Slow death

legendary

Activity: 3164

Merit: 1127

Leading Crypto Sports Betting & Casino Platform

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

What legal things i absolutely needs to get done before starting a centralized crypto exchange ?

This is a question you should ask a lawyer in your country or a regulatory agency in your country. But you must be legalized to provide a good service

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

Can't i just start it without doing any legal stuffs and market it right away ?

depending on your country, you can be arrested if you do

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem if i dont have a legal company ?

depending on your country you may have problems, you can be arrested

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

Also if i just say my company is based in "X" country and later register officially it will that be ok?

No, it's not good. Just think for a few minutes: you in real life when you want to open a company in your country, do you use another country's address? Do you have something to hide?

darkangel11

legendary

Activity: 2478

Merit: 1360

Don't let others control your BTC -> self custody

Quote from: KingScorpio on July 25, 2018, 03:18:34 PM

government will collapse with its banks, question will be there who will make the laws

gays? criminal thugs? warlords?

You'll have to experience it too see how it plays out. There's no way for a land to exist without some form of a government, unless you want your area of influence to decrease, or you don't want to have land at all and live like nomads.

Quote from: KingScorpio on July 25, 2018, 03:08:17 PM

lawyers are nowadays highly corrupt individuals, it would be better to find a way somehow arround.

Don't generalize. There are honest lawyers, just like there are good policemen and so on.
Lawyers have to be witty to go around stupid laws that some idiots came up with in the first place and nobody has the balls to remove.

Quote from: ?? on ??

before you build it, ask yourself, can I get the liquidity?

Yup, it all starts and ends with money. You can always start with something small and local and slowly expand, but it will still cost a lot.

KingScorpio

sr. member

Activity: 1470

Merit: 325

Quote from: CryptoKingh on July 25, 2018, 03:13:56 PM

Quote from: fibrolit on July 25, 2018, 02:55:20 PM

In our time, a huge number of people who own a crypto currency are not interested in the level of protection and legality of the exchange. This applies to many bounty hunters and novice traders. Only 5-10% of traders will be interested in these issues. As for decentralized exchanges, here the issue of legality of actions and dependence on the state does not seem to me at all.

Is it irrelevant whether they are interested in the legality of the exchange when Uncle Sam comes knocking at your door. The legality of a exchange will protect you in the future against the government.

government will collapse with its banks, question will be there who will make the laws

gays? criminal thugs? warlords?

CryptoKingh

newbie

Activity: 96

Merit: 0

Quote from: fibrolit on July 25, 2018, 02:55:20 PM

In our time, a huge number of people who own a crypto currency are not interested in the level of protection and legality of the exchange. This applies to many bounty hunters and novice traders. Only 5-10% of traders will be interested in these issues. As for decentralized exchanges, here the issue of legality of actions and dependence on the state does not seem to me at all.

Is it irrelevant whether they are interested in the legality of the exchange when Uncle Sam comes knocking at your door. The legality of a exchange will protect you in the future against the government.

KingScorpio

sr. member

Activity: 1470

Merit: 325

Quote from: Vod on July 09, 2018, 06:04:17 PM

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem if i dont have a legal company ?

That doesn't make sense - not having a legal company is shady...

lawyers are nowadays highly corrupt individuals, it would be better to find a way somehow arround.

in each reagions the local exchanges might manipulate and use the fear of the people to create themselves a strong basis. preventing the other ones from becoming legal

fibrolit

sr. member

Activity: 784

Merit: 255

In our time, a huge number of people who own a crypto currency are not interested in the level of protection and legality of the exchange. This applies to many bounty hunters and novice traders. Only 5-10% of traders will be interested in these issues. As for decentralized exchanges, here the issue of legality of actions and dependence on the state does not seem to me at all.

Jerick01311

newbie

Activity: 84

Merit: 0

Creating New Exchange is very Hard. Because you Need High Security you need Partnership .you need Big Funds And Team Behind Your exchange you need A Meeting For A need Development For Your Project before you Start. You Need to Makes Idea to Make Trust Your Trader To Your New Crypto Exchange . Because many Of New Exchange Now Is Scam and Many Funds cant. Withdraw it
Thats the Reason Why Many Big traders Are Afraid To enter New Exchange.
I think you can Help this Idea You Want To Create New Crypto Exchange
You need High Security
Team Behind And See Your Face.
More Development.
And Big Funds

d3x Team

newbie

Activity: 7

Merit: 0

Centralized Crypto Exchanges have many, many overarching laws that they must abide by. On top of that, in the US, there are many, many individual state laws. You would be breaking the law as soon as you open. Without an entity, you would be leaving yourself open to personal legal liability.

As for security ... do you have any idea how easy it is for someone to initiate a DOS attack on you? Simple buffer overflow -> elevation of privilege. And do you really want to be the next hacked exchange?

Rhegar011

newbie

Activity: 63

Merit: 0

you definitely need legal and registered company. if you are going crypto to crypto, the procedure is simpler as compared to crypto-fiat. you need deep pockets for every jurisdiction you are catering your crypto-fiat services.

stomachgrowls

hero member

Activity: 3010

Merit: 794

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

What legal things i absolutely needs to get done before starting a centralized crypto exchange ?

Can't i just start it without doing any legal stuffs and market it right away ?

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem if i dont have a legal company ?

Also if i just say my company is based in "X" country and later register officially it will that be ok ?

You can do what you do want but expect there would be no users would definitely use up your shady exchange.
Centralized crypto exchange but doesnt comply any legalities? thats contradicting.
Even on top tier exchange do have the chance on getting hacked, i was amazed about your exchange wont get hacked. lol

Joel_Jantsen

legendary

Activity: 1988

Merit: 1317

Get your game girl

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

What legal things i absolutely needs to get done before starting a centralized crypto exchange ?

Pay Taxes, before and after creating a legally ran centralised crypto exchange with strict KYC policies.

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

Can't i just start it without doing any legal stuffs and market it right away ?

Why would anyone trust you? If you take all the funds and run away, customers would have no source to file a complaint against.

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem if i dont have a legal company ?

What are you? Computer Security God that you're so confident it won't get hacked? Even if you don't do shady stuff there are nasty hackers who will empty your exchange the moment it goes live.

Vod

legendary

Activity: 3668

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Licking my boob since 1970

Quote from: hellodarren on July 09, 2018, 05:38:29 PM

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem if i dont have a legal company ?

That doesn't make sense - not having a legal company is shady...

hellodarren

newbie

Activity: 1

Merit: 0

What legal things i absolutely needs to get done before starting a centralized crypto exchange ?

Can't i just start it without doing any legal stuffs and market it right away ?

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem if i dont have a legal company ?

Also if i just say my company is based in "X" country and later register officially it will that be ok ?

Topic: Creating New Crypto Exchange - Legal Concerns (Read 255 times)