Creating a crypto exchange
As a result of the increasing spread of cryptocurrencies, more and more people are willing to create cryptocurrency exchanges, i.e. platforms for their free exchange, withdrawal and other operations. However, there are some subtleties related to their operation and functioning that one should be aware of.
Why is the crypto exchange profitable?
– Since the beginning of Internet trading, trading commissions have been a major source of profit for online marketplaces around the world.
– Cryptocurrency allows people to access a wide range of financial services. If you offer these people to deal in cryptocurrencies on your exchange, it can significantly increase traffic and thus lead to additional revenues.
– If your exchange has a regular stream of customers, ICO projects are more likely to want to publish their assets on your site for a modest fee.
How to launch a crypto exchange?
Cryptoexchangers and cryptoexchanges are not the same thing!
Quite often there is confusion between these two concepts and the main reason for this is the use of the term “cryptoexchange” which defines both an exchanger and a crypto-exchange. The basis for their distinction is in their functionality, which is much broader if we are talking about a cryptoexchange. In addition, crypto exchanges only allow for the exchange between fiat currencies and cryptocurrencies, while crypto exchanges make this exchange profitable.
So what choice should you make? Should you choose a crypto-exchange or a crypto-exchange? The answer to this question is that to set up a crypto-exchange you need to understand the broader functioning of such a structure, so if you are looking for the easiest way, it is better to choose a crypto-exchange.
Peculiarities of activities in the EU jurisdiction
European common law countries operate in the field of cryptoassets according to a single scenario, but with territorial differences defining areas with more and less favorable licensing conditions.
The first thing to note is that there is the Anti-Money Laundering Directive (2018/843), which established the basic requirements for virtual asset service providers (VASPs), outlined the terms of service and the obligations of cryptocurrency projects to comply with AML /KYC measures.
The following outlines the main requirements that must be met in order for your business to comply with applicable laws:
- The founders, beneficiaries and managers must have an impeccable business history, reflected in the absence of a criminal record for each of them, conduct a risk assessment;
- The company must form and further implement the necessary AML/CFT policies, engage anti-money laundering specialists, develop AML/CFT documentation, internal company documents, implement IT solutions that will fully meet all legal requirements.
- The company must conduct its activities on the basis of the Know Your Customer (KYC) principles;
- The company is obliged to inform the relevant authorities about suspicious transactions;
- The company is obliged to keep data about its customers and information about their transactions for a certain period of time.
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