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The Forex market is an attractive investment destination because the platform offers high liquidity and many options for earning potential. This is why many companies are thinking about how to start a forex business. The first stage is the creation of a brokerage platform. And it is important to get all the necessary licenses because it is illegal to offer services without documents. Local authorities can close the platform and impose fines. Moreover, your unlicensed site will be unattractive to potential customers as every trader who decides to start a cryptocurrency business strives to get the maximum guarantees.
To create a cryptocurrency exchange and obtain a license, you must select the desired region. Some countries are weakly regulated (Belize, Saint Vincent, and the Grenadines, Vanuatu). Here, the requirements for obtaining a license are simpler, and this is a convenient solution for beginners. Also, there are other popular regions with stricter regulation (Cyprus, Malta, Estonia, UK). However, the list of required documents for obtaining a license remains the same.
Let's talk about what documents you need to create a crypto exchange on Forex. List of required documents for obtaining a license "C" (this license is offered by Estonia, Cyprus, Malta).
- Information about the company and documents on its registration (address, statutory fund, founders, etc.);
- KYC and AML documents;
- Documents confirming the guarantee of financial risks, as well as data on the company's ability to repay debt obligations;
- Documents about founders and board members.
List of Registration Documents
The next step for obtaining a Forex license and starting a cryptocurrency exchange is the process of registering the platform according to the requirements of the selected region. Category “C” is the most demanded among beginners and beginner platforms.- The first step is to open a bank account. Remember that the bank must have an excellent reputation in the region. Then the first contribution (share capital) should be made. The size is 125 thousand euros for STP. In case you want to get a market maker license, you will need to deposit 730 thousand euros. Also, remember that these limits may vary depending on the requirement of the region or country. In addition, the investor must provide all the necessary certificates that this money is clean.
- In some cases, the regulator may require additional documents on the financial condition of the platform. This is necessary to analyze the financial viability and prove that the site will work and develop.
- Now you need to pay the fee. The standard tax amount is 4-8 thousand euros, depending on the country.
- The last step in the process of obtaining a license and before creating a crypto exchange is renting an office and hiring employees. Remember that regulators only issue licenses to real and professionally operating companies. Unreliable platforms prefer offshore zones for registration, where the requirements are minimal.
Potential Financial Risk Documents
This is another point to think about before starting a cryptocurrency exchange on Forex. Financial regulators protect users from unforeseen circumstances and other problems. Therefore, the broker must prepare the relevant documents.- Make a business plan. This is a very useful step. This approach will not only allow you to prove your serious intentions to the regulator. Having a development scheme will become the face of your platform and help you develop a quality strategy.
- Financial prospects. New entrants have far more expenses than income. The main profit will appear in the future. The financial regulator analyzes the documents received and makes a conclusion about the prospects of the platform. This allows you to understand if the broker is capable of withstanding the competition or will go bankrupt soon after the cryptocurrency exchange is created.
- Potential risks. Forex offers users good dividends, but it is worth remembering that it is also a highly risky market. It is important to convey this information to traders and clients who are going to start a crypto exchange business on your platform. It is necessary to draw up a clear and understandable document where all the risks are spelt out.
KYC and AML Documents
In order to create your own crypto exchange as quickly, conveniently, and efficiently as possible, the broker must meet all the requirements of the regulator. One of the important factors is compliance with KYC/AML requirements and the availability of mandatory documents. In order to obtain the approval of these institutions, the broker must provide certain documents.AML (Anti-Money-Laundering) is a "clean money" policy. In other words, you are prohibited from investing illegally or criminally obtained funds. Entering the market for such investors is impossible. KYC (Know-Your-Client). This is another requirement that prohibits working with unverified users. Therefore, all new customers must verify their accounts by providing the required documents.
Obtaining a KYC/AML certificate is possible from reliable providers. The intermediaries will check the company for compliance with the requirements and issue the necessary permits.
Information about the Founders and the Governing Board
Regions with a weak regulatory system have minimum staff and shareholder requirements for a new broker. Therefore, it is easier to get a license and start a cryptocurrency exchange here. But if we are talking about reliable white label trading platforms, then they operate in accordance with category "C" jurisdiction. And here there are more stringent requirements. Therefore, you will need to provide some additional documents.- Questionnaire for top managers and investors. This document allows you to learn more about the staff of the company and its employees, analyze their experience and prospects. Also, company owners must provide information about the board of directors to financial regulators. The most promising candidates are candidates with years of experience in the financial sector.
- Police clearance certificate. Another important point. All managers, board members, and shareholders must be free from criminal misconduct or under investigation.
Self-Obtaining a License
We have described all the necessary documents, and now you know how to register and how to create a cryptocurrency exchange. Moreover, you can do it by yourself, but there are some nuances here. After all, regulators may require hundreds of other documents that they deem necessary. The fact is that the laws on obtaining a license have additional "buts" that give financial regulators different mechanisms of influence. And if you did something wrong, the process of obtaining a license can take years. There are two options to win this battle: get the license by yourself or choose a reliable partner in this battle.The first option will require cooperation with professional lawyers. You will need to get more than a dozen consultations on how to start a crypto exchange, understand Forex legislation, and prove the correctness of your decision. But sometimes time is too expensive. Moreover, the process of learning about legislative nuances can be overwhelming. After all, there are also pitfalls here.
The second way is simpler and more efficient. A new broker may seek help from a quality liquidity provider and a trusted company with a wealth of experience. This allows you to go through all the legal steps quickly and without any hassle. You just need to pay for the service, send all the necessary documents. And soon you will receive a broker license. It sounds simple, but it is very convenient and is a reality.
B2Broker will help you fulfil your desires and create the best white label cryptocurrency exchange. The company implements innovative solutions and offers clients a wide range of services, including white label crypto exchange software. This is the most efficient way for a new broker. Because B2Broker allows you to get ready-made turnkey solutions quickly, as well as avoid typical beginner mistakes and enlist the round-the-clock support of a reliable partner.