money_gate

Home
Crypto
Crypto Company Formation in Europe

Crypto Company Formation in Europe

Posted on: July 18, 2022

Category: Crypto

GBO specializes in Crypto company formation in Europe

The European Union has adopted uniform laws that created a common regulatory scenario for finance in all the member states. Some countries have created a more favorable framework than others. Still, there are substantial differences between them when it comes to cryptocurrencies.

The European Union already regulates crypto financial business through the AMLD5. There will be further changes when the AMLD6 regulations come into force, probably at the end of 2024. The new law will probably define crypto assets as a new category of financial assets. Until then, they are not legally recognized as a currency.

GBO has been working in the cryptocurrency business in the EU since the beginning of digital currencies. Suppose you are looking for a crypto company formation in the most advantageous way. In that case, you should talk to our expert advisors to find the best way to get this done.

Find out how GBO will form your crypto company

Based on the experience we have, we can suggest looking at the following countries first:

crypto company formation in europe

Country	Theme
Lithuania	Lithuania is probably the most crypto-friendly country in the EU. It offers facilities for crypto-enabled financial services, Electronic Money Institutions (EMIs), crypto exchanges and crypto brokers.
	There are two kinds of crypto licenses available:
	Classic exchange: a platform for customers to buy and sell cryptocurrencies
	Depository wallets: providing crypto custody.
	It is a requirement for the company to have a registered office inside Lithuania. Still, the directors and shareholders do not have to be citizens.
Malta	Although Malta is widely known as the “blockchain island” due to the large number of digital service companies that have set up there, it is not a particularly friendly environment for companies wanting to do business in cryptocurrencies.
	Several large crypto exchanges like Binance, Bitbay and others are operating out of Malta. Still, banks there apply strict rules before accepting corporate customers wanting to deal with crypto transactions. Most regard this as high-risk finance and companies must comply fully with the Virtual Financial Assets Act.
	A crypto license can be obtained in one of four classes:
	exchange between virtual assets and fiat currencies
	exchange between one or more forms of virtual assets
	transfer of virtual assets
	safekeeping or administration of virtual assets.
	It is necessary to incorporate a private limited liability company, located on the island, with at least three locally-resident employees.
Estonia	Estonia comes close to Lithuania as one of the most digital-friendly countries in the EU.
	Estonia has committed to Anti-money Laundering (AML) and Countering the Financing of Terrorism (CFT). The Estonia crypto company license empowers the formation of a crypto exchange that can swap fiat for crypto currencies, exchange cryptocurrencies, and offer wallet storage of assets, both in fiat and cryptocurrencies.
Germany	German law currently recognizes crypto brokers as financial professionals. This means they must hold the crypto license defined by the Federal Financial Supervisory Authority (BaFin).
	Until AMLD6 comes into force, the German regulations are still under review and could be subject to changes. Most companies are looking elsewhere to establish their crypto presence until the scene stabilizes. Still, once this happens, Germany, which is the powerhouse of the EU economy, should become a dominant market.
Switzerland	Switzerland is not a member of the EU country, so different regulations apply there. Different kinds of cryptocurrency licenses are available, depending on what financial activity is intended. The Swiss Financial Market Supervisory Authority (FINMA) sets the guidelines.
	Obtaining a crypto license can be a lengthy process, and the KYC and AML checks are substantially different from the EU’s AMLD5 standards.
UK	Following Brexit, like Switzerland, the UK is no longer a member of the EU. Still, in this case, the regulations are substantially the same. However, this may change once AMLD6 is implemented in the EU, because the UK can now set its own standards.
	The UK is by far the primary market for crypto company formation - nearly one-half of all crypto businesses are domiciled there.
Country	Theme

Crypto company formation costs

Crypto company formation costs depend entirely on the country of domicile and the type of service being offered. GBO can prepare a detailed quotation outlining every company’s formation and licensing aspect.

FAQ

Why choose the Lithuania crypto license?

Lithuania is one of the EU’s most advanced digital finance environments. It has the second-largest number of Electronic Money Institutions (only the UK has more.) In terms of the relative importance of digital banking, Lithuania is much bigger than others in the EU.

What are the basic requirements for obtaining a crypto exchange license in the EU?

GBO can work with you to set up a crypto exchange in the right country in about 6-10 weeks.
The basic steps are:

Registration of a private limited company
Preparation of company documentation (Act of incorporation, Articles of association)
Preparation of license documents (AML /KYC / CTF) and details of the Ultimate Beneficial Owners (UBOs)
Application for the crypto license

What are the main kinds of crypto wallets businesses in the EU provide?

There are four kinds of wallets. The choice of which one a business needs depends heavily on the type of transactions and the required level of safety.
Software wallets allow customers to manage their online crypto assets themselves. The wallets (also called online, mobile, desktop, and hot wallets) use cryptographic keys stored on a connectable device that has access to the Internet. They provide easier access but may be vulnerable to hacking.

Cold wallets (also known as hardware wallets) are stored on a physical device that has no access to the Internet.

Hosted wallets represent a digital record of crypto assets and are stored on a secure third-party web server. They can be linked to the user’s account. Like hot wallets, they are easier to use but more vulnerable to hacking.

Decentralized wallets are a type of hosted wallet that reduces the security risks associated with hosted wallets. It doesn’t require a third-party service to transact or store the cryptocurrency.

About the Author: GBO Specialist

GBO provides advanced corporate solutions, which includes step-by-step guidance through the process of incorporating foreign companies and opening bank accounts worldwide as well as assisting to obtain gaming and financial licenses, clearing and payment solutions, operating from 2009 You can contact GBO at: https://il.linkedin.com/in/lena-dikman-04422496/

Recommended for you

interview with Yudi Soetjiptadi, CEO of Eventus International

23.11.22

Interview with: Mr. Yudi Soetjiptadi, Managing Director of Eventus International Visit SPiCE India webpage1. What has been happening in the gaming industry since lockdown caused by Covid19 has ended? During the shutdown, frequent gamblers shifted to new internet possibilities. Data showed increasing profits from online...

Top random number generator companies for gaming software

30.10.22

GBO’s team will assist you to find the top random number generator companies for gaming software All online gaming operators must build a random number generator (RNG) into their system which is the fundamental element that provides the randomness necessary for the outcome of digital...

New trends in banking 2023

30.10.22

Online banking has had the most profound effect on the banking sector over the last decade. The rate of change is accelerating, and is changing the whole customer experience. In 2023, automation of the customer interface and the application of advanced technologies like Artificial...