FAQ
Crypto licensing — frequently asked questions
Common questions on costs, timelines, jurisdiction selection and ongoing compliance. If your question isn't answered below, book a free consultation.
What is a crypto license?
A crypto license is regulatory authorisation issued by a national or supranational regulator. It permits a business to provide virtual asset services such as exchange, custody, broker-dealer activity, token issuance or stablecoin issuance. Most operating businesses end up holding two or three licences across their target markets, not one.
Do I need a crypto licence at all?
If you handle customer funds, run an order book, custody assets, issue tokens to the public, or operate the front-end interface for retail crypto users — yes, in most jurisdictions. Pure non-custodial protocols, immutable smart contracts and self-custody wallets often fall outside scope, but the answer depends on your role in the value chain.
How long does it take to get a crypto licence?
Timelines range from 4 weeks (Panama, Georgia FIZ) to 24 months (UK FCA registration, NY BitLicense). Median for institutional-grade licences is 6–12 months. The bottleneck is usually regulator review queues and fit-and-proper checks, not legal drafting. Plan for at least one round of supplementary questions.
How much does a crypto licence cost?
Application fees range from USD 5,000 (FinCEN MSB) to USD 100,000+ (UAE VARA Cat 4). Capital requirements range from zero (BVI substance-based) to USD 5 mn (Wyoming SPDI). Add legal fees of USD 30,000–250,000 and recurring annual costs of USD 50,000–300,000 for AML, audit and director services.
Which jurisdiction is best for a crypto exchange?
For institutional credibility: Singapore MPI, Hong Kong VATP, UAE VARA, EU MiCA CASP. For faster time-to-market: Georgia, Lithuania, BVI. For US market access: FinCEN MSB plus state Money Transmitter Licences. Most exchanges combine an offshore holding with an onshore licensed entity, rather than going pure-offshore.
What's the difference between VASP, CASP and VATP?
VASP is the FATF-aligned global term used in BVI, Cayman, Georgia and emerging regimes. CASP is the EU MiCA term, replacing national crypto regimes from 30 December 2024. VATP is Hong Kong's SFC-specific designation for trading platforms only. They cover overlapping activity but with different capital and conduct rules.
Can I buy a ready-made licensed crypto company?
Yes, but with caveats. Ready-made companies exist in Lithuania, Estonia (legacy VASP), Canada (MSB), Czech Republic, and a handful of Caribbean jurisdictions. Regulators must still approve the change of beneficial ownership, which takes 4–12 weeks and can be refused. See our ready-made guide for due-diligence steps.
What happens after I get the licence?
Ongoing requirements include annual returns, audited financial statements, AML programme refreshes, MLRO function, transaction monitoring rule reviews, change-of-control filings, regulator levies, and periodic on-site or thematic reviews. We offer post-licence retainer arrangements covering all of this on a named-partner basis.