The crypto industry today is of great importance in the modern world. Today, blockchain is prevalent in many industries, such as logistics, the financial sector, pharmacology, etc. It leads to government agencies in different countries striving to learn how to regulate this industry. Most jurisdictions ask organizations to pass verification and obtain a crypto currency license. It allows organizations to work honestly and legally and attract new investments.
Why Do Countries Seek To Regulate The Crypto Industry?
The crypto industry appeared relatively recently; however, today, it is trendy, and many people use crypto assets to pay for goods and services, mining, or trading.
At the same time, many scammers work in this market today, people who are engaged in money laundering and financial terrorism. Thus, government agencies strive to learn how to regulate this industry to protect citizens.
Each country sets different rules for regulating the crypto industry. Some, like China, completely ban such assets, while Venezuela has begun to actively use it on a par with local fiat currency (even pays social benefits in such investments). However, most civilized countries offer crypto organizations to undergo a unique check and obtain a license. It enables firms willing to work within the law to develop and attract new customers actively.
Who Regulates The Crypto Industry In Different Countries?
As already mentioned, each country sets its own rules for regulating the crypto industry, creating various government bodies that control the work of crypto organizations.
USA
It is a massive country with federal laws, but each state reserves the right to interpret them differently. Here, crypto assets are regulated by such government agencies as the SEC and the CFTC. It leads to the fact that many tokens are equated with securities here.
According to regulators, the cryptocurrency market itself is not against the law, provided all transactions are carried out in the open, without third-party intermediaries, and all data is documented. The IRS is also cracking down on cryptocurrency earnings or profits even more in 2023, although you can get potential tax deductions if you lost money from cryptocurrencies.
Canada
This country was one of the first in the world to start developing laws to regulate crypto assets. Although cryptocurrencies are not legal tender here, the bitcoin exchange-traded fund was created for the first time.
The primary regulators are the CSA and the IIROC. They require that every crypto organization register and pay taxes correctly.
In terms of taxation, crypto assets are treated like commodities, and the tax rate ranges from 19% to 33%, depending on the size of your company and the province where you are registered.
Great Britain
The leadership of this country is interested in developing the crypto industry; therefore, it establishes relatively simple rules for regulating this. The license here is advisory; however, your organization must register and pay taxes.
The UK FCA is the main regulatory body. The main requirement that you must comply with is the AML and KYC policy. So, each client who registers on your platform must complete the verification process and provide documents confirming their identity and place of residence. You may not provide services to companies that have previously been involved in fraud, money laundering, or financial terrorism. In addition, you are required to identify suspicious economic activities and report them to regulatory authorities.
Countries That Make Up The European Union
Regulations vary slightly from country to country in the EU. However, crypto organizations must register and pay taxes throughout the union's territory. In 2022, a law was passed that tightened the requirements for AML / KYC, allowing better consumer rights protection for 2023.
Switzerland
The government of this country is also interested in actively developing the crypto business. There are very lenient rules for regulating the crypto business, which leads to the fact that today more than 2 thousand large and small firms are registered here. The Swiss Federal Tax Administration (SFTA) is the main regulatory body. It considers cryptocurrencies to be assets, so they are taxed on wealth in 2023.
How To Get A Work Permit
As you can see, each country sets different rules for regulating crypto assets. However, each asks organizations to go through the licensing process and pay taxes promptly.
There are several aspects of the licensing process that will be valid for all jurisdictions:
• The organization must think through all aspects of its work and create a business plan for at least 2 years;
• The firm must be registered in the country where it wants to obtain a work permit;
• The company must have an account in a local bank, where the authorized capital is kept, and pay state fees;
• Prepare the necessary documents;
• Check if your organization complies with government requirements.
With a legal education, it will be easier for you to understand all the features of regulating crypto assets in different countries. Please seek help from specialized specialists.
Benefits Of Obtaining A Crypto License
Government authorities recognize unlicensed crypto organizations as fraudsters, meaning their platforms are blocked, and the owners must pay a considerable fine. It can be challenging for such an organization to obtain a work permit in the future, as the reputation is ruined.
Thus, to avoid getting in trouble with the law, you must obtain a work permit.
In addition, many investors refuse to cooperate with unlicensed crypto organizations, as they doubt their reputation. The fact is that companies that receive a license undergo a comprehensive check and prove that they are not fraudsters and are not engaged in money laundering.
Thus, if you want to attract more investors and clients, you must get a work permit. Thus, you can only do this with a license if you want your crypto business to develop actively.
Services Of Our Company
If people need help understanding the conditions of regulation of the crypto industry in different countries, they should contact our specialists. Specialized lawyers have extensive experience and the necessary knowledge to help you obtain a work permit. The list of our services includes:
• Consultations;
• Paperwork;
• Opening a bank account;
• Verification of cryptocurrency compliance with government authorities.
You can contact our specialists, who will do all the hard work of obtaining a license for you. You do not need to fly to the selected jurisdiction, and all documents can be issued electronically for crypto compliance.
Cryptocurrency Conclusion
The crypto industry is actively developing today despite the crypto winter. According to statistics in 2023, the number of transactions increased by almost 40%. This leads to a large number of crypto organizations seeking to create their own business in 2023 and beyond. To avoid problems with the law, you need to find out in advance who regulates cryptocurrencies in different jurisdictions and what requirements you must meet. Quality website promotion in the crypto industry is handled by cryptoseoagency.
