How Does A Digital Currency Exchange Apply For A License? Which Blockchain License Is Most Valuable?

How to apply for a digital currency exchange license?

Currently, only a few countries in the world can issue digital currency licenses. Even though many countries can apply for licenses, the price is not affordable by ordinary companies, and this license is not necessarily good because it is expensive, so if exchanges or investors want to get a digital currency license.

We can simply understand which countries have better-known license plates. US MSB license, Estonia, Australia and other countries are currently applying for more licenses. Anyone engaged in digital currency, virtual currency or foreign exchange business in the United States must obtain this license to have local and overseas legality, so applying for a US MSB license has become the first priority, followed by Estonia and Australia. Currently, there are new rules in Estonia that require the director to be present in person. Estonia takes care of the visa interview, which makes the entire process more difficult.

China has not yet opened applications for such licenses

If China can recognize the legitimacy of digital currency, a large amount of new capital will definitely enter the market. This will undoubtedly be a great benefit for the currency circle, but the risks will also increase, so supervision is necessary, but it cannot be too Cruel. Recently, Hu Jiye, a professor at China University of Political Science and Law, said that my country’s blockchain finance and digital currency industry has huge development potential. In terms of supervision, we must adhere to the combination of prudence and encouragement to prevent insufficient and excessive supervision. Insufficient supervision will lead some people to take the wrong path and become the cradle of criminals; excessive supervision will hinder the development of blockchain technology, and an emerging technology may die prematurely.

At present, my country’s so-called “blockchain license” is just a business license with blockchain

This so-called "blockchain license" is actually a business license with blockchain, and is not a formal document approving the relevant institutions to conduct business.

The necessity of “blockchain license”

1. Necessity of name

Generally speaking, the company name only needs to comply with the relevant national laws and regulations and the provisions of the registration authority. There are no strict restrictions except for business activities in the financial sector. However, according to the "Regulations on Registration and Management of Enterprise Business Scope", the business scope of an enterprise should include or reflect the industry or business characteristics in the enterprise name. Therefore, if a company’s business license name contains the word “blockchain” but its business scope has nothing to do with the blockchain industry, it does not comply with the company name registration regulations.

Therefore, for practitioners in the blockchain technology industry, if the company name involves "blockchain", the business scope should involve technology research and development, consulting services, training activities and other business activities that are consistent with the characteristics of the blockchain industry.

2. The necessity of business scope

According to the "Regulations of the People's Republic of China on the Registration and Management of Enterprise Legal Persons" and its implementation rules, if an enterprise engages in business activities beyond the approved registered business scope or business method, it will be given a warning, its illegal gains will be confiscated, and, depending on the severity of the case, a fine of not more than three times the illegal gains will be imposed. fine. A fine of not more than 30,000 yuan shall be imposed. If there is no illegal income, a fine of not more than 10,000 yuan shall be imposed. Anyone who violates other relevant national regulations and engages in illegal business shall be ordered to suspend business for rectification, have illegal income confiscated, and be fined not more than three times the illegal income but not more than 30,000 yuan. If there is no illegal income, a fine of not more than 10,000 yuan will be imposed. ; If the circumstances are serious, the business license will be revoked.

It can be seen that there is a risk of administrative penalties for business activities that exceed the scope of business, especially when some regions in my country have recently investigated and dealt with illegal pyramid schemes, illegal fund-raising and other business activities, and severely cracked down on illegal activities. Control the blockchain industry. "When nominally engaged in illegal activities, the risk of business license revocation is also increasing. For companies actually engaged in the blockchain industry, having a business license that meets the corresponding business activities is an inevitable choice."

But whether the business scope must include the term "blockchain" depends on the company's own development needs. Generally speaking, business scopes such as technology development, technology transfer, technology consulting, and technical services are in line with the business scope of blockchain companies. business and comply with the requirements of the industrial and commercial department during the industrial and commercial registration process, but if the enterprise still wants to further refine its business activities and limit its business activities to "technological development, technical services, etc. within the field", it is recommended to communicate with the industrial and commercial department , change the business scope.

Regardless of whether the future fate of "blockchain licenses" will be the same as financial licenses, the threshold is high and the stock is limited. There is no doubt that obtaining regulatory approval is particularly necessary only when a company is truly engaged in business activities in the blockchain field. Otherwise, those who temporarily obtain a business license to engage in unrelated business activities just for the purpose of hype or "stealing the limelight" will also face a ban from the regulatory authorities.

What is a digital currency exchange operating license?

In order to ensure the standardized development of the digital currency market, major countries in the world have now included the digital currency market in regulatory discussions and legislative processes on how to supervise digital currencies. Many countries around the world are undergoing regulatory discussions and legislation. Regulations and management standards vary greatly from country to country. However, the basic regulatory overview can be divided into the following five points: First, classify the legal nature of digital currencies and establish their legal status. The identification of the nature of digital currencies has always been a core issue in legal supervision. More than 20 countries and regions have recognized the legal status of digital currencies such as BTC. Different regulatory agencies have different identifications of their legal attributes. HM Revenue and Customs (HMRC) defines Bitcoin as personal property; US Internal Revenue Service (IRS) classifies BTC as a taxable asset; In Japan, BTC is defined as a new payment method; Australia “allows digital Currency is deemed to be currency subject to excise tax”. The second is to supervise ICO and protect the rights and interests of investors. The regulatory progress of ICO does not match the development level of ICO. The United States and Singapore have successively determined that ICO tokens belong to the securities category under ICO supervision and have included them within the scope of supervision. In Switzerland, digital currency companies do not require any specific licenses or approvals. The UK's Financial Conduct Authority (FCA) discussed blockchain and digital currencies in specifications published in April 2017. Countries such as China pay close attention to ICO regulatory issues and ban the issuance of ICOs. The third is to adopt a licensing system to supervise the legal qualifications of digital currency start-ups.

The New York State Department of Financial Services (NYDFS) released the Regulatory Framework in June 2015, making New York the first state in the United States to officially launch customized Bitcoin and digital currency regulation, setting a precedent for other states and other regions in the United States. . The state regulates virtual currencies. Set benchmarks. Subsequently, Washington State in the United States and Japan also introduced similar licensing systems to protect consumer rights. These licensing systems are regulated by companies operating in the digital currency space such as BTC and include various compliance policies, such as the need to comply with KYC and AML regulatory requirements. Fourth, include digital currency trading platforms and private users in anti-money laundering regulations to prevent money laundering activities. The vast majority of transactions, such as the exchange of digital currency and legal currency, are completed through trading platforms, and the supervision of the platform is less difficult than that of private users. Therefore, most governments have made trading platforms the focus of anti-money laundering regulation. In order to improve regulatory efficiency, the United States and Japan have focused on intermediary service institutions such as digital currency trading platforms and payment companies as the focus of anti-money laundering supervision. Anti-money laundering measures for private users of digital currencies mainly focus on addressing the anonymity of digital currencies. The draft amendment to the fourth edition of the EU’s Anti-Money Laundering Law regulates the use of digital currencies through real-name identity authentication of digital currency users. Fifth, it is to reduce or reduce BTC transaction taxes or establish regulatory immunity privileges to relax supervision of the digital currency industry. In order to encourage financial innovation, some governments have relaxed regulations on BTC, etc. Australia has canceled the BTC goods and services tax; the European Union has exempted digital currency transactions from value-added tax; and the states of North Carolina and New Hampshire in the United States have developed regulatory exemptions for some digital currency merchants.

标签： #blockchain #digital currency #currency #btc