It sounds exciting to start a crypto business, and it is. You need to take some important steps to make sure everything is right before you launch your exchange, wallet app, or crypto service. That means getting licensed, making or buying the right tools, and setting up the right legal framework.
We won’t use complicated legal or technical language in this guide to help you understand how to start your crypto business. If you’re just thinking about the idea or are already making progress on your product, this guide will show you the way.
We’ll also take a look at Canada, Malta, and Switzerland, three well-known countries where crypto businesses frequently obtain licenses. Finally, we’ll talk about what kind of software you’ll need to store and handle your users’ crypto.
Step 1: Know What Kind of Crypto Business You Want
Decide what kind of business you want to start first. Every crypto business is different. Most people have these types:
- A crypto exchange where users can purchase and sell cryptocurrencies like Bitcoin and Ethereum.
- Users can store their digital money in this crypto wallet app.
- A way for online stores to accept crypto as payment
- Online market or OTC (over-the-counter) desk
- A company that makes its own cryptocurrency or token
- A company that helps people with their crypto assets or gives them advice
Why does this matter? Depending on where you operate, various services have different legal rules. For instance, you might need a full license to run an exchange but not for a non-custodial wallet where users keep their money.
Step 2: Pick the Right Country
There are different crypto rules in different places. While others have more limits, some countries are very friendly to crypto start-ups. The place where you register your business and apply for licenses should be right for your goals.
These are three excellent choices:
Canada – MSB Registration
A government body in Canada called FINTRAC is where most crypto companies need to register as a Money Services Business (MSB). Exchanges, trade services, and payment providers all fall under this category.
In some countries, getting a full license is harder than getting an MSB permit. There’s no need to hire Canadians or open an office there, but it might be a beneficial idea. These are the most important things you need:
- A legal company, which can be established in Canada or another country, is necessary.
- A clear plan for the business
- A compliance officer ensures adherence to anti-money laundering rules.
- AML and Know-Your-Customer (KYC) rules
- Keeping FINTRAC up to date
It usually takes 4–8 weeks to register. You don’t have to pay to join, but you can pay for help from law or compliance experts.
This option is beneficial for crypto start-ups seeking a quick and cost-effective method to operate legally both globally and specifically in North America.
Malta – CASP License (EU, MiCA-Ready)
Malta is a member of the EU and has long been friendly to crypto companies. In line with the new MiCA rules (Markets in Crypto-Assets), it now provides a Crypto Asset Service Provider (CASP) license. It will soon be possible for businesses to operate in every EU nation with a single license.
A CASP license is needed if you:
- Run an exchange for cryptocurrencies.
- Offer services for wallets or custody.
- Send crypto to other people.
- Give tips about crypto.
- Give out pieces or coins.To apply, you need to:
- Organize a company in Malta.
- Place leaders in your area and open a small office.
Set up AML rules, IT protection rules, and a business plan.Please secure the necessary funds, which may range from €50,000 to €150,000, depending on the services you plan to offer.
You’ll need to go through ongoing compliance checks after you get your CASP license, which usually takes 4–6 months.
As long as a company is ready for tighter rules and a local presence, this license will let them serve people all over the EU.
Switzerland – SRO Membership
Switzerland is renowned for its banking and financial services, and it also hosts numerous crypto companies. To start a crypto business there, you don’t need a full license, but you do need to be a member of the SRO.
Self-Regulatory Organization is what SRO stands for. These are private groups that make sure their members follow Swiss rules against money laundering. If you want to start a crypto trading, wallet service, or exchange in Switzerland, the first formal step is to become an SRO member.
To join an SRO, you need to:
- Sign up for a Swiss company (AG or GmbH).
- Choose a head or agent in your area.
- Send in an AML paper and a business plan.
Set up systems for checking on customers and sending reports.It takes four to five months. The whole price ranges from CHF 15,000 to CHF 30,000, depending on how big and complicated your business is.
This option is suitable for crypto companies that focus on compliance, operate in Europe, or aim for long-term growth in a stable and reputable country.
Step 3: Register Your Company
You’ll need to set up a company once you pick your nation. Depending on the local regulations, your business could be structured as a limited company, a joint-stock company, or another type of entity. Also, you need to:
- Pick board members and owners.
- Please create, or at least apply for, a business bank account.
- To write your company’s rules, you will need to find “articles of association.”
- Documents should be filed with the local business office.
Before you can apply for a license, you need to finish this step, which usually takes two to four weeks.
Step 4: Get Your Compliance in Order
You need to follow the rules that stop money laundering and scams even if you don’t want to be a bank. This means having rules and systems in place inside the company, such as
- Checks to make sure you “Know Your Customer”
- Keeping an eye on deals for anything fishy
- Let the police know about strange behavior.
- Training for staff on compliance
- Putting someone (a compliance officer) in charge of everything
When you apply for a license or registration, regulators will look at how you set up compliance. Your application could be turned down or held up if it’s not strong enough.
Step 5: Choose Crypto Wallet Software
Crypto wallets are important for any business that deals with crypto. The users can keep, send, and receive digital money with them. You’ll need to decide between custodial and non-custodial wallets based on the service you use.
- Custodial wallets: Your company maintains the private keys of your customers. This constantly happens on exchanges and controlled systems. The wallets must be secure, and user money must be protected.
- Non-custodial wallets let users keep their keys. You only give them the software’s interface. This lowers your risk and compliance work.
Software for crypto wallets should be able to:
- Multiple signatures for safety
- There should be cold storage available for many cryptocurrencies.
- How to use hot wallets quickly
- Controlling access based on roles
- This includes checks for compliance, such as verifying addresses that are on a ban list.You can use open-source tools to make your own wallet, or you can buy enterprise-ready wallet technology from a service.
Step 6: Launch and Grow
Once you form your company, secure its license, and prepare its software, it’s nearly ready for action. Before going live, test everything, including customer support, training, wallets, and Know Your Customer (KYC) flows. Please ensure that your team is well-trained and prepared.
After that, it’s time to go. Focus on building trust with users and partners. Be ready to change your ways when the rules change. And finally, remember to follow the rules, especially as crypto becomes more controlled.
Final Thoughts
These days, it takes more than a brilliant idea to start a crypto business. To operate properly, secure your technology, and gain user trust, you need to take specific actions. To make your trip much easier, pick the right road early on, whether you’re in Canada registering as an MSB, Malta applying for a CASP license, or Switzerland joining an SRO.
The rules are changing quickly, just like crypto. But with the right setup, you’ll be ready to grow safely and create something that will last.
