Topic: crypto trading business without a license (Read 343 times)

You can start up your trade platform without having any license depending where you’re living. So it will be best if you make some research about how it works in your country or maybe ask those around to know. Though there is one thing you said that I’m a bit against  “having a low budget”.

Before you do anything you should be ready for it and we’ll prepared, you don’t just start up something when you’re not fully prepared, cause not having enough budget might cause you to go bankrupt tomorrow and you know what always follows.

the rules for making business in each country are different and it also depends on the rules about crypto in that country. If it is in my place, any business that wants to be given a legal sign must be registered at the Trade Office and Licensing Service Office. Its better to at least make our business legal locally. But also you have to make sure that crypto isn't illegal thing in your country.

yes, if the crypto business like a new project without a license  it's dangerous, and investors don't want to invest in projects like this because investors think the project is a fraud, so if want the project to be successful, security and trust are number one.

Sounds illegal just like you want to avoid some taxes but better if you do that legally because you might be acused of not only tax evasion but money laundering too in which has the greater punishment. There is no way you can avoid the government wrath but maybe if Bitcoin is not legal but not ban in your nation then maybe you could bypass the law for a short period of time.

Digger further for the Russia advise I found something in Quora that may or may not help you:

https://www.quora.com/What-license-do-I-need-to-create-a-crypto-exchange

and to quote


So I guess its one route you can take as well. But just be careful though, Its Russia so goldluck on your trading exchanges.

If you dont wanted to be in jail, you better follow the process and get the license before opening your trading business. Trading platform nowadays are in a hotseat by the government ad trying to regulate it properly. For me, you should focus on security first before licensing your business. What is the purpose of the business if the security of your customers are hanging in a thread? Building a trading business need millions of dollars so you better seek for a partnership or raise an ICO.

It would be still possible, after all not all business needs to register at all, no business needs to register to be honest.

A license gives you the right to operate with the regulations of the government put on you and you can be relaxed about it since you are not breaking any laws and following all the steps you should as a business. However if you do not get a license the only difference between that and having a license is the risk factor.

If you get caught while operating without a license there will be consequences and there would be penalties in play. There could be even jail time depending on what type of business you are in. Hence the license is not there to run the business, it is there so you could get a "free out of jail" card when things go bad and you just say "I was following regulations".

I'm not planning to leave my partners, as I said i'm the person who developed the idea and the platform, I did most of the work.
So in case I will join another company everybody involved will be part of the deal.
This is not the best solution but i'm afraid that if I wait 1 year somebody else will come with the same business and i would have waste 2 years of my life for nothing.

Just be careful with what you are planning as pulling out of a partnership especially if they are in a good position will be harder than you thought. Always find time on reading the partnership agreement you have with them maybe you will find out that what you partnership you have entered is not that easy to jump ship after all. Also just think of it. Is is really that good of an idea of being independent as soon as you have the money to do so? If things are working out with your partner why would you leave them?

I'm thinking about to join another business that already has a license and maybe give him some percentages of the profits.
This until i don't get my own license of course.

Nope there is none, and if you started to run your business without the necessary permits no one will trust your trading platform as a reliable trading website. Instead of looking for a way to run your crypto exchange illegally while not try to look for a partner who will handle all the expenses, you can talk about how you will divide your profits after that but it is important that you know your partner is not taking advantage of you knowing that he has the money and all, the right partner will come just don't be desperate on having one.

Hopefully those information can be useful to other people too, so this is what i found out so far:

- Malta requires a VPA license (1 year)
- Estonia requires a license (1 year) it requires 50k as company capital and the actual process cost around 100k
- Netherlands it doesn't require a crypto license, but the lawyer told me that they still want you to get a license related to fiat even if you don't use them(it depends on the business model)
- Honk kong (not clear) I managed to speak with somebody, this guy was calling cryptocurrency "crystal currency" all the time so i'm not sure if he is really quilified (he adviced me to contact their office in Liechtenstein)
- Liechtenstein I called them and I will receive a call back from them, not sure when.
- Saudi Arabia according to internet is now illegal to start trading crypto company there, so I haven't reached nobody
- Japan I haven't called no one, but it looks it is the most difficul place where you can start a crypto trading business
- Russia, it looks like you need some license there too, but I will investigate a little more

Does anyone have more suggestions? thanks 

Thanks I will make some research, i found out that maybe Netherlands could be a solution too.

Then I suggest you move to Russia because you can run your exchange on that country without a license(Not recommended to run a company without a license), but of course, if you want to become a legitimate crypto exchange you should have that one. Basically, you need a license to run your company in those countries that support cryptocurrency.

Yes that's what I have been doing, i spoke to an Estonia lawyer and to a Malta lawyer, they both told me that in their country i must get the license in order to get started with the business, I'm looking for a country that can be a better fit for my company.

Yes I think that's the point, on top of that  I guess it's important not to provide the service to people who come from regulated countries.
I guess I need to look for a country that has no regulation about bitcoin and establish there, it's just not easy to find the right place.

The subsisting laws in the country you'll be operating from is what matters, as it will determine if you'll be able to operate with/without a license. In countries that aren't really crypto friendly, you might have a hard time operating in those places.

That's what Binance has been doing for quite some time now. Dig in, take over, apply for a license, get the heck out in case it's not granted to you. It worked well for them, but I wonder how long they can continue doing this, especially with how regulators start to become more motivated than ever before to finally do what they are supposed to do.

There aren't any in your situation, and you seem to be aware of it with how you plan to start without a license anyway. I don't recommend anyone to replicate this because you don't know how regulators are going to respond to you. Some might just order you to shut down, where others will fine you on top of it because you violated their laws. Don't try them.

Take the 2nd comment or post above.

Each country do have its own laws when it regards to business.Therefore,before tending out to talk about licensing then its better to consult out a local lawyer into your place and
ask regarding on this matter. If cryptocurrency is somehow still neutral or isn't still regulated then you can start up without license.

It's nor hard but it's expensive and it takes a lot of time.
For instance in Estonia you need at least 50k as company capital plus the actual process to get the license cost up to 100k, on top of that it takes about a year.
So my plan is to get started without a license and apply for it asap.
It looks like starting a crypto business is not for everyone. At least not anymore.
I'm looking for legal solutions of course.

Hmmm. Why not apply for a license before officially rolling out your crypto platform? I mean it is hard to apply for a license in the first place? You wouldn't want to risk everything so it would be better if you will get a license first so that you will have no doubts running your business, just saying. Best of luck though.

Thanks Cindy for your reply, it looks like most of the business that managed to get a license they did while running an ICO, I didn't ask anybody directly but that is what seems to be like the pattern, while raising funds from the ICO use the first funds received to acquire the license.

Anyways it's hard to talk to somebody involved with a similar company because they see you like a competitor, so of course it's not in their interest to help you.

I had an idea about running an ICO, but my token would be considered as security token, and according to the lawyer I asked informations to set up the ICO would have costed me something like 400k (without counting the money required for marketing).

I think I might be able to get investors, but having the platform ready and not being able to launch it because a license it kind of hurts 

I know there are 100's of websites that do provide trading services without being regulated or without having any license, i don't know how to do that without getting in trouble and what would be the best way to do that.

Meanwhile of course I will apply to get a license, because I want to provide to my users a service that is regulated.

To add further. Try reaching out to other projects and see what they have done with licensing. Many won't respond or care to share but I like to believe in human kindness.

On your point about not wanting to conduct an ICO because you don't need millions of dollars. You can do a smaller ICO with not such a large raise. Go back a few years and ICOs never raised millions of dollars like they do today. Alternatively you could seek investment through another source, that might enable you to hire a lawyer who can help expedite the process.

Thanks! your answer was very useful, I'm from Italy and I did some research, Estonia and Malta are the best options for eu based companies, however both require a license, it may take up to 1 year to get it.
I did some research as well on ICO and to set up an ICO is very expensive, plus I don't need millions of dollars to be fair to run this project so I decided not to go with it.
I really want to be regulated but I don't really want to wait a year, that's the main issue.
My business model is not exactly based on an exchange it's more like a real trading platform (think it like forex), so I need something different according to the lawyer I have been speaking to.
They told me I need a license called VFA (malta).
It's very interesting the fact that if I register the company here in Italy I don't need a license, I didn't know that, so I will look for it.
Thank you again.

I am not a lawyer and so my advice will be very limited and will be based on common sense. Before you have taken the trouble to create an exchange you should have researched the laws of your country, for this you could count on the help of a lawyer in your country. But leaving that aside let's your question:


as far as I know, in the United States, Japan and South Korea are the countries that require licensing and they are very strict, and the most rigorous are Japan and South Korea. in malta you can also have a license, but from what I read they are more considerate. If you are in Russia, Saudi Arabia, Brazil, Portugal, Italy, Argentina, Canada and many other countries you may not need a license, see the case of yobit, hitbtc and many exchanges that have no license, but are online and making profits by doing poor service and robbing customers. Of course, the fact that you do not have a license and not be inspected by the government does not mean that you should be a scammer who just wants to create an exchange to enrich by stealing your customers' money


Oh, you do not know. today people have discovered the gold mine to finance their projects that 90% of them are just meaningless projects, I'm talking about ICO. ICO is the new way people found to get funds for their projects.

Hi everybody, I spent the last year building a cryptocurrency based trading platform different from anything else available in the market.
I'm now in the phase where I need to register the company and get started with the licenses process.
I know that until sometime ago most of the exchanges and trading platform didn't had any license, is there a way to get started without a license (legally) and apply for it later on?
I wonder how most of cryptocurrency projects can afford to go live if they have low budget like myself.
I hope somebody can help me to figure out