united kingdom

Registering your crypto company with the FCA in the UK can be pretty intimidating, but our company is eager to help. If you want professional assistance, don’t hesitate to contact our experts.

Finally, an obligatory requirement for obtaining an FCA license is an actual office space equipped with necessary devices and a high-speed internet connection.

Personnel Requirements

The personnel requirements for a licensable company are also high, with the Executive Director nominee needing to demonstrate their understanding of the financial market segment. For a limited liability joint-stock company (LTD), there should be at least one private founder with no residency requirements. In addition, the company must have at least one director who is a private individual of any residence, a compliance officer who works with the regulator, and a secretary is not necessary.

Documents

To obtain the license, a package of documents must be prepared, including  a risk description, business plan, and policies under AML/KYC legislation.

After submitting these documents, the maximum timeframe for receiving an FCA financial brokerage license can take up to a year.

Requirements to obtain a license

You must meet several requirements to obtain a license for a cryptocurrency exchange in the UK. Firstly, a legal entity must be registered with a physical office, and corporate tax is applied to cryptocurrency exchanges, while VAT is not introduced. Additionally, the company must open bank accounts for cryptocurrency transactions and demonstrate compliance with anti-money laundering and terrorism financing prevention legislation.

The license is issued for the following activities:

• Crypto exchange.
• Exchange from crypto to fiat and vice versa.
• Crypto ATM operations.
• Custodian wallet services.
• Peer-to-peer exchange of crypto.
• ICO-related transactions.

The United Kingdom is among the most favorable countries for innovative digital businesses such as cryptocurrency mining, exchanges, and electronic money transactions. The UK and the territories under the British protectorate, including the Isle of Man, are seen as ideal platforms for blockchain startups and initial coin offerings (ICOs).

Regarding Bitcoin, the UK considers it private money, and crypto assets are deemed numerical combinations derived from mathematical calculations that are not subject to the Anti-Money Laundering Act.

The Financial Conduct Authority (FCA) is the national regulator licensing non-fiat currency exchange businesses. It follows the Bank of England and the UK government’s stance. These institutions actively explore blockchain technologies, embrace payment crypto-solutions as an inevitable part of the future, and even offer state support to blockchain startups. Although the legislative regulation of crypto-related businesses is still in its babyhood, the FCA issues licenses for cryptocurrency exchanges and exchangers. Any profits from cryptocurrency transactions are subject to standard capital gains taxation, including VAT, similar to the United States.