By Kooshila Takoordyal, 21.08.2020 Updated 26.08.2020
The advanced and disrupting technology of cryptocurrencies and blockchain has taken the world by storm and the value rapidly increased rapidly to more than 5000% in 2017. But the wave is far from over, with 40 million cryptocurrency users worldwide there is still plenty of opportunity in the market to establish a cryptocurrency business. In May 2020, the cryptocurrency market cap was over $2.6 billion and is forecasted to reach $23.3 billion by 2023.
For some countries in the world, Cryptocurrency’s revolutionary dispersed approach is a challenge. Such countries protect themselves from this “challenge” with anti-crypto legislation and hard policy towards banks and businesses who wish to adopt it.
Coincidentally, not all countries are anti-crypto currency, with some being friendly and even welcoming towards cryptocurrency business opportunities. If you’re looking for a place to establish a cryptocurrency business, you might want to check out countries like Malta, Estonia or Switzerland, to name a few.
1. Malta
Due to its favourable and detailed legislation, Malta is the first and only country to introduce an organized framework for cryptocurrency used to help combat money laundering and financial crime through its MFSA (Malta Financial Services Authority). With the Malta parliament signing three bills into law, they expect to change the people’s perspective and view of cryptocurrency. Binance, the largest cryptocurrency exchange in the world in terms of trading volume is now headquartered in Malta. This is a hugely profitable cryptocurrency exchange, making $200m profit in one quarter alone. On November 1st, 2018 Malta launched 3 blockchain bills: the Malta Digital Innovation Authority Bill, The Technology Arrangements and Services Bill and the Virtual Financial Assets Bill.
Note: The cryptocurrency sector in Malta has experienced some setbacks. It was recently reported that 70% of crypto companies have not applied for a license. Additionally, the Malta Financial Services Authority (MFSA) has been slow to process applications and has yet to issue any licenses.
2. Estonia
Estonia is one of the friendliest countries in the world for crypto and blockchain companies. Estonia is even considering the launch of its own national cryptocurrency, Estcoin with the new recent legislation for cryptocurrency service providers.
Amendments to the Money Laundering and Terrorist Financing Prevention Act (MLTFPA) enter into force on March 10, 2020. The changes primarily concern cryptocurrency service providers. The amendments make tougher the requirements for cryptocurrency service providers, they must bring their activities in line with the new requirements by July 1, 2020; increase the state duty and strengthen the position of the Estonian Financial Intelligence Unit (FIU).
Estonia grants specific licenses for your company to work with cryptocurrencies, make changes between fiat and cryptocurrencies, or act as a wallet for your clients.
3. Switzerland
Switzerland has been one of the more progressive nations when it comes to cryptocurrency businesses. Last year, it allowed blockchain start-ups to apply for a FinTech license that would let them handle deposits of up to $100 million. It is looking to advantage the way in promoting the growth of this up-and-coming financial sector by applying a light touch to its rules and regulations for financial technology companies. Especially the canton Zug nicknamed “Crypto Valley” has passed some very progressive laws regarding crypto and related businesses, even approving Bitcoin as payment for utility bills.
When choosing a location to establish a cryptocurrency business, it is crucial that you first find out what is the local government’s stance is towards cryptocurrency including taxation and banks policies. The experts at Euro Company Formations can assist you to explore these options. Please Contact Us today to start the process.
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