Obtaining a Crypto Broker License

Working in the cryptocurrency market is considered a profitable business today. This is a unique opportunity to enter the market of growing rates. In light of recent events, this sector has increased retail interest. Launching a crypto broker, that is, a business model that combines the advantages of cryptocurrency transactions and brokerage operations, is suitable for financial companies and aspiring entrepreneurs.
Lawyers of Law & Trust International offer comprehensive services for obtaining a license for the activities of a cryptocurrency broker. We have deep knowledge in the field of regulation of financial markets and blockchain technologies, which allows us to effectively resolve any legal issues that arise in the process of obtaining such a license.

Lawyers of Law & Trust International offer comprehensive services for obtaining a license for the activities of a cryptocurrency broker. We have deep knowledge in the field of regulation of financial markets and blockchain technologies, which allows us to effectively resolve any legal issues that arise in the process of obtaining such a license.

Who is a crypto broker and what does "cryptocurrency exchange" mean?

All these enterprises facilitate the process of buying and selling transactions with cryptocurrencies. But brokers and the exchange itself work for different audiences. For example, a crypto broker appeared relatively recently, as a representative of a new concept to respond to market demand, and a crypto exchange has existed since the advent of cryptocurrency trading.
In short: a crypto exchange is needed as an online platform for currency exchange, and a crypto broker is a company that provides financial services and acts as an intermediary. Brokers also offer additional opportunities to clients - including portfolio management and investment advice.
You can become a broker in the cryptocurrency market through third-party white-label providers or by obtaining broker status.
Exchanges and brokers make money through commissions.

How to Become a Cryptocurrency Broker

There are several methods to become a cryptocurrency broker.

Create an independent brokerage company. Most often, such a company is created from scratch. This allows you to control the entire cycle - from infrastructure to marketing and regulatory requirements. Creating an autonomous broker involves developing a platform, building relationships with liquidity providers and banks, and recruiting a team of professionals.
White Label Partnership . They provide an existing platform and other infrastructure under your brand, outsourcing all back - office solutions. In this case, there will be less control, but you will be able to save your time.
Introducing Broker ( IB ) status. In this status, you will introduce clients to a larger brokerage firm and receive commission payments. Minimal resource investment, but you will have limited control over the business.

Registration of brokerage business

You can register your company yourself or through a supplier. The latter option is much more convenient since the intermediary already has experience in this matter. However, before this, it is important to understand where to register the company. Some jurisdictions prohibit such activities, but there are countries that are popular in this area - Saint Vincent and the Grenadines, Marshall Islands, Cayman Islands. You can consult on this issue with our specialists.
It is important to obtain a crypto broker license - official permission from the country's financial regulator. Obtaining such permission is important not only for the jurisdiction where the activity is carried out but also for the company itself - it allows you to enter the global market and shows clients your transparency and law-abidingness.

Creating a brokerage company using third-party software

Working on establishing your own company in this field from scratch is a complex process. Therefore, to simplify it, you can use third-party white-label solutions. They offer already configured platforms and back-office tools, thereby making the work easier for brokers.
Third-party vendors are knowledgeable in the industry and provide guarantees of ongoing technical support and other updates.