The modern banking system has become obsolete. Many people worldwide began looking for the opportunity to carry out international transactions, decentralized in minutes and without large commissions. Blockchain has become such a payment system. The original idea of the first crypto enthusiasts was to create a payment method that would not be tied to government regulation and could work in a decentralized manner. Then why do crypto organizations need to obtain a cryptocurrency license? Getting a permit has many advantages, which we want to discuss in more detail.
No problems with the law
Today, many people worldwide are involved in the crypto industry, so the governments of different countries are forced to create rules for regulation. Some countries, such as China, altogether ban crypto, and some give them complete freedom and encourage people to use them as a payment method, such as El Salvador. But most countries have set specific rules that crypto organizations must follow. So, all EU countries, the USA, Canada, and many others require that all organizations be tested and get a work permit. It is necessary to protect the population of these countries from fraud and replenishment of the state treasury with taxes from the crypto industry.
Those companies that decide to operate without a permit will be recognized as fraudsters, forced to pay huge fines, and their activities will be blocked. Government agencies in many countries have developed mechanisms to block the operation of unlicensed companies.
Also, if you decide to work without a license, get in trouble with the law, and choose to get a work permit, you won’t succeed. The level of trust and reputation play a decisive role in licensing matters. If you are recognized as a fraud in one jurisdiction, you cannot obtain a work permit in any other country.
Increase the level of confidence among investors
There are a lot of scammers in the crypto industry. We regularly see reports of intruders who embezzled the money of depositors. It leads to the fact that most investors tend to cooperate only with licensed companies because this is the main guarantee that they are ready to work honestly and openly.
In addition, when you cooperate with a licensed organization, you can be sure to resolve all legal disputes.
Attract more customers
After you get your work permit, you can start an extensive advertising campaign that will help tell a large number of people about your company’s activities. However, you don’t have to worry about it attracting the attention of government regulators.
It is worth saying that most crypto enthusiasts are well aware of the risks of cooperation with unlicensed organizations, so they often refuse this idea.
How to get a work permit?
The process for getting a work permit depends on your chosen jurisdiction. We decided to tell you about obtaining a cryptocurrency license in Poland because this jurisdiction establishes straightforward licensing rules and is loyal to the crypto industry.
First, you must prepare documents and check if your company meets the basic requirements. Please involve an independent organization that will help to carry out the audit.
Next, you need to register a company in this jurisdiction. It can be done remotely, taking approximately 5 business days. Next, you need to get a PESEL – a unique tax number. It takes about a month.
You also need to hire personnel with impeccable reputations who have not previously had legal problems. All team members must have relevant experience and the necessary knowledge and skills to perform their duties.
After completing the preparatory phase, you can apply to have your company listed on the register.
The entire registration process in this jurisdiction takes approximately 2 months. For comparison, in the UK, it takes about 6 months; in Estonia and the Czech Republic – 3 months; in Lithuania – 1 month; and in the UAE – about 2 weeks. The described terms are valid for those companies that built the management of their company in advance, taking into account all the requirements of state regulators and collecting all the necessary documents.
The choice of jurisdiction is very important because obtaining a permit, taxation, and the territory where you can work legally depend on it.
If you cannot decide on the jurisdiction independently, contact the Gofaizen Sherle specialists. They will analyze your organization’s activities and suggest which country is ideal for you to license. They will also give recommendations on what should be changed in your company’s work so that it better meets the requirements of government regulators and help you collect a package of necessary documents.
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