Launching a Crypto Exchange: Step-by-Step Guide

With cryptocurrency being so popular nowadays, many businessmen are pondering to launch new cryptocurrency exchanges and exchangers which is not so easy as before because there are certain legislative obstacles. So what do businessmen should be aware of prior to launching their own cryptocurrency exchange? We have made a step-by-step guide for creating cryptocurrency exchanges and exchangers.

Step 1. Incorporate a company and select a jurisdiction

The most popular jurisdictions for registering a cryptocurrency exchange company include Estonia, Switzerland, USA, Malta, Gibraltar, Great Britain, Singapore, and Hong Kong, and offshore jurisdictions. The issue with the latter is that there are practically no payment solutions for operations with fiat money.

SBSB lawyers advise using offshore companies only for non-fiat transactions. Companies generally do not work with US citizens due to enhanced financial monitoring in the USA.

Step 2. Obtain the cryptocurrency license

Some jurisdictions require a cryptocurrency license which allows one to identify a payment solution quickly and operate fiat money. To get the license, it is necessary to comply with certain requirements, including due transaction monitoring, availability of an office, and a local management member, and payment of the state duties. Our lawyers strongly recommend that crypto companies obtain the license which is the evidence of project stability and reliability.

Step 3. Set up a bank or payment system

The difference between payment systems and banks involves the ability to accept and issue deposits. Banks have a strong reputation so most crypto projects prefer to work with them.

Frick Bank (Lichtenstein), Fidor Bank (Germany), and СIM Bank (Switzerland) are considered cryptocurrency-loyal banks. The following requirements must be met to open a bank account:

• an understandable business model of the company;
• economic connections to the bank’s country;
• minimum deposit;
• a transparent company structure.

Step 4. Connect your Website to a Processing Provider

One needs to open a merchant account with a PSP provider in order to accept payments from individuals via VISA and MasterCard. We collaborate with an extensive range of processing providers, each of whom offers its own business approach and acceptable risk.

The account opening conditions depend on:

• the country of incoming and outgoing payments;
• turnovers and currency;
• processing history.

The current cryptocurrency exchange or exchanger process is clear and transparent. Well-known crypto exchanges had long shifted their operations to the legal framework in the face of immense regulator penalties. One should keep in mind that every step involves a large package of documents and investment agreements.

We at SBSB know what it takes to obtain a cryptocurrency license in various jurisdictions and launch ICO/IEO projects. Our lawyers offer crypto project implementation on a turnkey basis and are there to give advice on any matter. Join our Telegram chat to get a free online consultation.