Cryptocurrency Licensing Services & Legal Solutions

A cryptocurrency license is issued by the regulatory authority in a specific country and authorizes firms to legally offer exchange, custodial, and a variety of services focused on digital assets. As crypto has grown over the years, regulation has emerged in all parts of the globe. With decades of experience in financial services, Atomiq Consulting is the ideal consulting firm to assist your group in selecting the best licensing jurisdiction that best fits your group’s needs.

Crypto Licensing Benefits

  • Ability to legally operate as licensed cryptocurrency exchange. Regulation allows licensed crypto exchanges to offer: staking, spot trading, margin trading, lending, as well as other popular exchange services
  • Comply with Apple Store and Google Play licensing requirements
  • Enhanced credibility compared to unlicensed VASPs
  • Legally market your digital asset firm’s services and products
  • Access banking and payment services otherwise inaccessible to unlicensed firms
  • Legally accept payment in crypto and offer the ability to convert from fiat to crypto as well as crypto to crypto
  • Launch a Web 3.0 project backed by regulation which improves credibility

Cryptocurrency License Terminology

The world of crypto regulation involves a variety of acronyms and terms which may be unfamiliar to newcomers. We outline them below to help demystify some of the most common words and phrases used in this industry.

VASP: Virtual Asset Service Provider

A VASP is simply a business offering crypto related services. While exchanges are the most common VASPs, these can also be businesses focused on Web 3.0 projects, asset management firms, and payment firms.

DASP & CASP

These two terms describe are interchangble with a Virtual Asset Service Provider (VASP) but are used in certain regions. For example, El Salvador uses the term DASP while CASP is a term used in Europe to describe crypto regulation.

Crypto / Digital Asset Licensing Jurisdiction Overview

Jurisdiction Key Benefits
🇲🇾 Labuan, Malaysia Access Southeast Asia’s markets with favorable tax regimes and a progressive regulatory environment.
🇲🇹 Malta One of the first jurisdictions in the EU to offer crypto licensing, now fully MiCA compliant.
🇻🇬 BVI Reputable offshore jurisdiction where major exchanges like Huobi and BitFinex are licensed.
🇸🇻 El Salvador The first country to recognize Bitcoin as legal tender; a DASP license is a cost effective way to launch your crypto exchange.
🇯🇵 Japan Operate under one of Asia’s most reputable crypto regulatory systems, ensuring high compliance standards and investor trust.
🇨🇭 Switzerland Benefit from a well-established and globally recognized licensing framework, ideal for fintech and blockchain enterprises.
🇿🇦 South Africa Tap into Africa’s growing crypto market with a regulatory environment that supports innovation and expansion.
🇻🇺 Vanuatu Establish operations in a cost-effective offshore jurisdiction with flexible licensing options for crypto businesses.
🇻🇨 SVG One of the most cost effective offshore crypto destinations.

How to Get a Crypto License? – A Step by Step Process

1. Selecting The Jurisdiction
The jurisdiction you select will depend on factors such as target regions, budget, and type of crypto project (exchange vs securitized token project). Our team will work with your group to help you select the best region based on your specific needs, keeping pricing and other factors in mind.

2. Submit KYC & Business Documentation
Regulators will require basic Know Your Client (KYC) documentation for each owner which is a copy of government issued ID and proof of residency. In addition, we’ll require specific details about your crypto project especially the software. The majority of regulators will require a detailed outline of the software, stress testing, security protocols as well as data management. Finally, a business plans and AML documentation will also be required, a services we can assist with.

3. Submit The Application
Once all documentation has been gathered and compiled, we’ll proceed to submit the application with the local regulatory authority. We’ll then wait for the regulator to provide their feedback as well as comments which usually takes several months.

4. License Approval & Banking
The regulator will issue the final approval. Depending on the region, it is often required that a local bank account must be opened to inject capital. Our team can also assist with additional banking and payment options.

Crypto Licensing Checklist – What to Consider Before Applying for a License

✅ Consideration
✔ Ability to Issue ICOs
✔ Taxes
✔ Reputation of License
✔ Recurring Costs
✔ Desired Regions to Target

Why Choose Atomiq Consulting for Your Crypto License Application?

Founded in 2014, Atomiq Consulting began by assisting FX & derivatives brokers with company formation services, as well as forex broker licensing consultation in both offshore and continental jurisdictions like Asia, Oceania, and EU. Atomiq Consulting also has years of experience assisting digital asset firms with cryptocurrency licensing as well as payment institution licensing services.

Atomiq Consulting is led by CEO Jonathan Baumgart, a veteran of online FX & CFD trading who began his career in 2005. For over a decade his firm has helped forex brokers of all shapes and sizes with licensing, banking, and company formation services. As a member of Zitadella Advisory Group, Jonathan leverages not only his personal network but a massive network of brokers, crypto exchanges, liquidity providers, and tech firms.  

Transparency and a commitment to excellence are the cornerstones of Atomiq Consulting. Jonathan not only is an active contributor on LinkedIn but also hosts the Atomiq Consulting YouTube channel, a rare resource which covers the gamut of licensing jurisdictions. Few firms can boast of the experience Atomiq Consulting brings to the table making us the best choice for your licensing needs.

Get a Price Quote on our Licensing Services Today!

    🌐 Looking For an Unlicensed Jurisdiction? Explore Global VASP Registration Options

    Jurisdiction Key Benefits
    🇨🇷 Costa Rica A cost effective & efficient option for VASP registration.
    🇵🇦 Panama One of the fastest ways to register a VASP in South America.

    Crypto / Virtual Asset Service Provider License FAQ

    What is a crypto license?

    A crypto license allows an exchange or digital asset firm the ability to legally offer their services in the region offering the regulation. Digital asset firms seek licensing for several reasons. First, a crypto license offers a level of credibility over non-regulated companies. Secondly, licensed crypto firms have better access to banking and other payment facilities compared to their non-licensed counterparts. Finally, crypto specific technology often requires some type of regulation in order for the exchange or digital asset project to operate.

    How much is a crypto license?

    Crypto licensing in certain jurisdictions can be obtained with budgets less than $50,000. Specific costs are region-dependent due to local costs as well as regulatory requirements. Factors that play a role in the cost calculation are number of required directors, local office rental fees, paid up capital requirements, as well as government fees. Generally speaking, jurisdictions in Europe such as Cyprus and Switzerland tend to be the most expensive while South American jurisdictions like El Salvador are the most cost effective.

    What is a VASP?

    A Virtual Asset Service Provider often referred to as a VASP is a business providing services in the realm of cryptocurrency. A VASP doesn’t necessarily have to be a crypto exchange, it can be a Web 3.0 project, a firm that tokenizes assets, or a fund managing crypto investments among other services.  

    Is crypto legally regulated?

    Yes, cryptocurrency is legally regulated in a variety of countries across the globe. Europe in particular has a very detailed and comprehensive regulatory framework for for the regulation of cryptocurrencies which includes focus on Anti-Money Laundering (AML) along with cybersecurity and other types of data protection measures.  

    What is a DASP?

    A Digital Asset Service Provider, DASP, is a company whose main focus of business centers around cryptocurrency. This specific terminology is used primarily for regulation in El Salvador where a unique license is granted for companies providing cryptocurrency services. A more common term to describe crypto firms is a Virtual Asset Service Provider or VASP.

    How to get a crypto exchange license?

    To get a crypto license, one must first select a jurisdiction which will depend on costs, target regions, and other factors. After a jurisdiction has been selected, one must then apply for the license which involves paying government fees and supplying specific documentation about the business as well as owners. Once the application has been submitted, one must wait several months in order for the local regulator to review and approve the license.

    What is MiCA?

    Markets in Crypto-Assets Regulation (MiCA), aims to provide a harmonized legal framework for crypto assets across EU member states. The advantage in MiCA is that each EU member state has the same rules and guidelines to follow, making it easy to obtain regulation regardless of the country. An additional benefit is the ability to passport regulation across all EU states.

    About the Author

    This article was written by Jonathan Baumgart, Founder and CEO of Atomiq Consulting. With over a decade of experience in the forex industry, Jonathan specializes in helping businesses launch brokerages and navigate global licensing requirements.

    Connect with Jonathan on LinkedIn



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