Service providers in relation to crypto-assets, such as exchanges and brokers, initially had to operate within a regulatory vacuum, with self-regulatory initiatives kicking off the process of regulating the industry at large. This process was further hastened by the emergence of shortcomings by various service providers to the detriment of their users and clients, which attracted the attention of regulators worldwide.
In this day and age, reputable service providers seek to operate within jurisdictions that offer a regulatory regime covering the services provided and protecting the end users from any malicious or unlawful practices. At BCAS, we have the required knowledge and expertise to assist you in your journey to acquire the required licence to operate in Malta, Liechtenstein, or Singapore, three of the leading regulatory hubs.
The licensing process varies to greater or lesser degrees depending on the jurisdiction you opt for. The commonalities across the three jurisdictions we operate in, and the services that offer in this regard include:
Assessment of the applicant and collection of documentation
Preparation of the application forms and ancillary attachments
Submission of the application with the relevant authority
Communication with the relevant authority throughout the licensing process
Preparatory work for the commencement of operations upon the grant of in-principle approvals/final licence
The timeline for the obtainment of licences is also heavily dependant on the jurisdiction opted for, as well as the efficiency and responsiveness from your end in terms of providing the requisite information. BCAS will guide you along every step of the journey to ensure the swiftest application process and grant of the final licence.
Obtaining a licence within a reputable and regulated jurisdiction offers peace of mind to users and clients of such service providers in possession of the said licence. Following certain past incidents where end-users lost significant amounts in own funds due to regulatory lacunae, it is becoming increasingly important that such end-users deal primarily, if not exclusively, with service providers that are bound by adequate regulatory frameworks and regulatory authorities that supervise their ongoing business conduct.
Furthermore, it is likewise important for a service provider to be set up in a jurisdiction that offers regulatory certainty and a licensing regime. Operating under a general framework or under a temporary concession bears the considerable risk of not knowing whether any then-applicable standards are suddenly changed with far-reaching consequences to the operations of the service provider, often with no recourse to be pursued.
We at BCAS have ample experience in handling licencing processes and liaising with the relevant regulatory authorities to ensure that the journey to becoming a regulated business entity is as smooth and efficient as possible.