Virtual currency license
The virtual currency license gives its clients the opportunity to exchange cryptocurrency for fiat, fiat for cryptocurrency, and to exchange various cryptocurrencies among themselves.
The main requirements for obtaining a virtual currency license
Availability of a certificate of no criminal record for all participants of the company (managers, owners, Contact person). Appointment of a Contact Person – a specialist of the company responsible for verification of clients and analysis of their activities for compliance with the requirements of the AML Law. Drawing up of the company’s internal procedural rules on the basis of the legislation governing activities with cryptocurrency.
The importance of virtual currency license
The presence of authorization for the storage, trading and sale of cryptocurrencies brings the business to a new legal level, these companies quietly work with almost all banks in the world, without fear of sudden blocking of the account. In addition, licensed cryptographic companies interact more effectively with business partners, have the right to issue virtual money, place tokens and act as an intermediary. Failure to obtain the necessary permits and licences can result in heavy fines or even business closures.
The main advantages of the virtual currency license:
- no interest tax, management fee, royalty and technical fee
- lack of exchange control
- no stamp duty and vat
- no import duty / sales tax / service tax
- no capital gains tax and inheritance tax
- 50% tax discount for foreign professionals / managers
- 100% tax exemption on director fees for foreign directors
- no dividend tax
Types of virtual currency license
It is possible to obtain a license for two types of activities related to cryptocurrencies:
- Crypto Exchange License. The company gets the opportunity to exchange digital currency for fiat, and fiat for cryptocurrency, receiving a commission.
- Crypto Wallet Exchange Crypto Wallet Services. In this case, the company manages client wallets (or rather keys to personal wallets of clients) for cryptocurrency storage.
The company, having received a crypto license, can choose its own sphere of activity.