Licensing

Bosnia and Herzegovina is an attractive and promising destination for those looking to engage in commercial activities within the cryptocurrency sector. Although a comprehensive legislative framework for cryptocurrencies is not yet in place, the government is paying significant attention to the issue. Drawing on the experience of neighbouring countries, they are working on developing regulations aimed at establishing the legal oversight of digital assets.

Cryptocurrencies in Bosnia and Herzegovina are not recognised as an official means of payment and do not hold legal tender status. However, they are not prohibited for trading and investment purposes, and both individuals and legal entities are free to use them. The growing interest in the development of the cryptocurrency industry, the country’s readiness to integrate with the international cryptocurrency market, and the desire to attract foreign investors give reason to hope that a legal framework will soon be established, facilitating the formalisation of cryptocurrency activities in Bosnia and Herzegovina.

Poland is an attractive jurisdiction for conducting cryptocurrency business. Since 2021, state regulation of business activities in the cryptosphere has been in force here. Notably, unlike many other countries, Poland does not issue cryptocurrency licenses in the traditional sense. Instead, it has a crypto-authorization procedure. To work with crypto assets, a company only needs to be registered in a special Register of Activities Related to Virtual Currencies (Rejestr działalności w zakresie walut wirtualnych). Failure to comply with this requirement can result in a fine of 100,000 zlotys (about 25,600 euros).

The operation of cryptocurrency companies in Poland is regulated by the Anti-Money Laundering and Anti-Terrorist Financing Law of 2018, as amended in 2021. Currently, the cryptocurrency business is administered by the Chamber of Tax Administration (Administracji Skarbowej w Katowicach), which maintains the Register of Activities Related to Virtual Currencies.

Kyrgyzstan is one of the few countries where activities related to cryptocurrency assets are regulated at the state level. Since mid-2022, the country has implemented the law “On Virtual Assets”, which outlines the rules for such activities and also recognizes the right of individuals and legal entities to own cryptocurrencies and use them in accordance with regulatory standards.

The Agency for the Development of Information Technologies and Communication is the official body regulating the cryptosphere in Kyrgyzstan. Several types of crypto licences are available in this jurisdiction:

• crypto trading operator (crypto exchange);
• currency exchange operator (crypto exchanger);
• mining operator.

Additionally, in Kyrgyzstan the public issue and circulation of crypto-assets are regulated by law.

Dubai is one of the top choices for businessmen planning to obtain a cryptocurrency licence in the UAE. In recent years, the emirate’s authorities have made significant efforts to establish themselves as a regional hub for financial technologies and to attract cryptocurrency companies from around the world. In the UAE, general cryptocurrency regulations were first introduced in 2018, and in November 2020, the local regulator, the Securities and Commodities Authority (SCA), issued the initial crypto asset regulations.

The Virtual Assets Regulatory Authority (VARA), established in 2022, is the primary regulatory authority overseeing the cryptocurrency sector in Dubai. As of early 2023, VARA has introduced mandatory licensing requirements for all cryptocurrency companies intending to operate in the region.

Currently, Dubai offers two main types of cryptocurrency licences:

• Exchange licence.
• Custody licence.

All activities related to cryptocurrency assets in Slovakia are regulated following European legislation. This regulation primarily focuses on compliance with anti-money laundering and anti-terrorism financing prescriptions. Any transactions involving digital financial assets, as well as transactions with fiat financial assets, must be transparent and traceable.

Cryptocurrencies in Slovakia are not considered securities or financial instruments, and they are not subject to regulation by the Central Bank (NBS). However, they are subject to strict legal provisions, which are spelled out in Law No. 279/2020 Coll., amending Law No. 297/2008 on the prevention of money laundering and the financing of terrorism. Cryptocurrency activity in Slovakia is monitored by the Financial Intelligence Unit (Finančná spravodajská jednotka).

Under this decree, Thai enterprises, related to digital assets, are classified into three types:

• Digital asset exchanges. They serve as platforms or networks designed for digital assets trading or exchanging. The work of these exchanges is based on matching orders or facilitating agreements between parties interested in trading cryptocurrencies. Regulations, set forth by the SEC, govern their functioning, with specific exclusions as outlined in their notification.
• Digital asset brokers. They are individuals or entities that offer broker or agent services, enabling others to provide trading or exchanging operations with digital assets. These services are offered to all interested and are usually remunerated through fees or compensation. However, certain brokers or agents may operate, based on criteria stated in the notification, prepared by the SEC.
• Digital asset dealers. These individuals or entities dealing with digital assets and offer trading or exchanging services within their own accounts. These activities take place separately from digital asset exchanges and are integrated into their regular business operations. However, it is worth noting that certain dealers may operate in accordance with guidelines provided by the SEC in their notification.

In order to conduct activities associated with digital assets within the country, entities of any type are required to undergo registration with the country’s regulatory authority, the Securities Commission (SEC).

Singapore was among the first jurisdictions where the regulation of cryptocurrencies was adopted at the state level. In general, this country is considered favorable for the activities of cryptocurrency exchanges and crypto start-ups.

Cryptocurrency companies are regulated by the Monetary Authority of Singapore (MAS). The main documents regulating the crypto sphere in the country are the Securities and Futures Act (SAF) of 2001 and the Payment Service Act 2019, which came into force at the beginning of 2020. The last one introduces the concept of a “digital payment token” (DPT) and those who want to provide any related services must obtain a license of a payment institution (Small Payment Institution or Major Payment Institution). It is important to note that a cryptocurrencies exchange license is required only for crypto exchanges that are going to act as intermediaries in trading operations with tokens that are subject to securities legislation.

MAS pays much attention to decentralized finance and takes an active position regarding the regulation of the crypto industry in Singapore. In 2022, several recommendations and consultation papers were issued to mitigate the risk of money laundering and terrorist financing through digital assets. Further changes to the regulatory framework are expected throughout 2023.

The Singapore Cryptocurrency and Blockchain Industry Association (CBIA) actively supports small and medium-sized businesses in this industry.

Estonia is one of the first jurisdictions in the European Union where public authorities began issuing appropriate licenses to cryptocurrency companies. This happened in 2017. Today, mining, ownership and storage of digital currencies, initial coin offering (ICO), purchase, exchange and sale of cryptocurrencies are allowed in this country. Estonia is considered a country friendly to the crypto industry, but the state tightly controls the work in this area.

The main regulatory body in the field of cryptocurrency activities is the Estonian Financial Intelligence Unit (FIU), the Estonian Financial Supervisory Authority (EFSA), and the Money Laundering Data Bureau are in charge of the operation of crypto companies in the country.

ADVANTAGES OF OBTAINING A VIRTUAL ASSETS LICENCE IN THE CZECH REPUBLIC

Registering a crypto company in the Czech Republic provides many opportunities for conducting a successful international business. This licence entitles a company to do business throughout the European Union, making its services available almost all over the world.
The Czech Republic has the advantage of relatively low labour costs, transparency of the tax system and proximity to the CIS countries, both mentally and geographically.

Over the past few years Lithuania has evolved into a country with a well-developed and sophisticated financial system as well as transparent legislation. The crypto regulation in Lithuania allows to conduct reliable businesses that clients are willing to trust. One of the standards is to obtain the cryptolicence that allows a company to provide virtual assets services to its clients.

ADVANTAGES OF OBTAINING A LICENCE IN LITHUANIA

Registering a crypto company in Lithuania opens up numerous opportunities for international business development. This licence enables operations throughout the Eurozone, allowing the company to promote its services or products on a nearly global scale. By utilizing COREDO’s assistance in obtaining a cryptocurrency licence, several benefits can be gained:

• Registration and establishment of your company in full compliance with legal requirements.
• The ability to provide virtual asset-related services in Lithuania, including:
  • Virtual currency exchange operator: Offering services for the exchange, acquisition, and/or sale of virtual currency for a fee:
    • Fiat to Crypto exchange (Fiat vs Crypto).
    • Crypto to Fiat exchange (Crypto vs Fiat).
    • Crypto to Crypto exchange (Crypto vs Crypto).
  • Cryptocurrency depository wallet operator: Managing custodial wallets for virtual currency on behalf of clients:
    • Virtual assets and crypto storage service.
    • Crypto transfer service.

• Obtaining appropriately drafted internal AML/CFT documentation that complies with the requirements of AML/CFT legislation.