Cryptocurrency Regulation – How Does It Work?
Cryptocurrency Regulation – How To Become a Bitcoin & Cryptocurrency Broker?
The rapid rise in value of Bitcoin and other cryptocurrencies has brought waves of attention from the global investment community. As with many emerging industries, cryptocurrency regulation is still in its early stages. Many are now looking to take advantage of a new industry with massive future potential. As specialists in corporate formations, licenses, and banking solutions for online forex (foreign exchange brokers), Atomiq Consulting is an excellent position to guide brokers and other investors looking to obtain money transmitter licenses for their cryptocurrency businesses.
Where are Crypto Currencies Currently Regulated?
A good place to start is to examine where bitcoin and blockchain regulation currently exists. Because of their disrupting nature and relatively new entrance to the marketplace, there is little regulation for cryptocurrencies as of this moment. A few exceptions do exist.
Estonia has recently made headlines by offering licenses for wallet and cryptocurrency exchange services. Specifically, the Financial Intelligence Unit (FIU) of Estonia, offers 2 types of licenses. The first allows exchanges to convert virtual currencies to fiat, while the second for is for the previously referenced currency vault or wallet services.
In the United States, a few states such as Washington now offer a regulatory framework, but this doesn’t apply to the entire country. In Asia, the only country offering some type of legislation is Japan. Other than the United States and Japan, it’s an open landscape. The EU, for example, currently has no regulatory framework, although this should change in 2018.
This seeming lack of regulation may make it appear that it is rather easy to simply set up shop, which is unfortunately not the case.
How Do I Get Started?
Due to the nearly open landscape in bitcoin and cryptocurrency regulation previously described, it can appear easy at first to get started: simply set up a company and bank account. Establishing a cryptocurrency business is not as easy as it looks. Any of those who have tried this route can attest to this fact. Although the lack of regulation can be viewed as lowering the barriers to entry, many hurdles still present themselves.
To help navigate these challenges, Atomiq Consulting is able to guide your firm with help in registering, launching, and accepting payments for cryptocurrencies. We are happy to work with existing forex brokers looking for a bitcoin / cryptocurrency license, as well as new entities.
Contact us for more details related to cryptocurrency regulation.
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