It all comes down to where you want your cryptocurrency exchange to be based. Once you've decided on a location, consult with a lawyer to learn how to make your crypto exchange fully legal in that country. This will keep you from facing serious criminal charges in the future.

As an example,

Crypto-related activity is legal in the United States. If you have a registered business in the United States, you must pay taxes. A cryptocurrency store for up to a year is taxed at 10%-37%. Crypto stored for more than a year and steadily increasing in price is subject to a 24% penalty.

The Advantages of Crypto Licenses


A crypto license may assist your crypto business in gaining the trust of potential investors and other partners. A crypto license can protect your company from legal ramifications. Certain service standards and security regulations must be followed. A crypto license can assist your company in presenting itself as a trustworthy partner to consumers and potential customers. This can help your company stand out, especially if it isn't already owned by one of your competitors.

Yes, a license is typically required to run a crypto exchange, as most jurisdictions regulate these platforms to ensure compliance with financial and anti-money laundering (AML) laws. Licensing requirements vary by country but often include registering with relevant financial authorities, implementing Know Your Customer (KYC) procedures, and adhering to AML regulations.

For instance, in the United States, crypto exchanges must register with the Financial Crimes Enforcement Network (FinCEN) and may require state-specific money transmitter licenses. The European Union mandates compliance with the Markets in Crypto-Assets (MiCA) regulation. In other regions, licenses from securities or financial regulatory bodies may be necessary.

Operating without proper licensing can result in severe penalties, including fines, closure, and legal actions, making compliance essential.