How to obtain a crypto license
- Jan 12
- 5 min read
Introduction - how to obtain a crypto license
If you want to operate a crypto exchange, custody platform, payment service, stablecoin issuer, or any business handling customer crypto assets, you need a crypto licence. Without regulatory approval, you cannot legally serve customers, open operating bank accounts, or access most payment rails.
This guide explains how to obtain a crypto licence, what type you need, where to apply, how long it takes, what it costs, and how to approach regulators correctly.
Buckingham Capital Consulting has been helping financial and crypto businesses secure regulatory approvals across Europe and internationally for over 15 years.
Crypto Licensing at a Glance
Typical timelines
Accessible jurisdictions typically take three to six months. Established financial regulators usually take six to twelve months depending on the complexity of the business.
Before applying you need
A regulated company, approved directors and shareholders, AML and transaction monitoring systems designed for crypto, sufficient capital, local operations, secure custody and IT systems, and a clearly defined business model.
How Buckingham Capital Consulting Can Help
Buckingham Capital Consulting supports crypto exchanges, custody providers, payment platforms, and stablecoin issuers through the full crypto licensing process.
We assist with jurisdiction selection, local company setup, regulatory application preparation, regulator engagement, and ongoing compliance after approval. This allows clients to move from planning to live regulated operations under a single coordinated project.
What is a Crypto License
A crypto licence is regulatory authorisation to provide services involving cryptocurrencies, stablecoins, and digital assets. Depending on the jurisdiction, this may be issued under a crypto specific framework, a payment services regime, or a full financial services licence.
Holding a crypto licence allows a business to legally operate, work with banks and payment providers, and offer services to customers in regulated markets.
Who Needs a Crypto License
You need a crypto licence if your business does any of the following:
Operates a crypto to fiat exchange
Operates a crypto to crypto trading platform
Holds or safeguards customer crypto assets
Processes crypto or stablecoin payments
Operates a crypto brokerage or OTC desk
Issues or redeems stablecoins
Operates a crypto trading or matching engine
If you perform any of these activities for customers, you are carrying out regulated crypto activity.
Main Types of Crypto Licences
Crypto licences fall into four main regulatory categories:
Virtual Asset Service Provider licences
Used to regulate exchanges, custody, and transfers in many countries.
MiCA Crypto Asset Service Provider licences
The European Union licence that allows passporting across all 27 member states.
Payment Services or E Money licences
Used for crypto businesses that move customer money or issue stablecoins.
Financial services licences
Used for crypto trading, brokerage, and custody in more developed markets.
The correct licence depends on what you do with customer funds and digital assets.
Top 7 Crypto Licensing Jurisdictions
Crypto licences are issued by national financial regulators. The jurisdiction you choose determines how credible your licence is, how easily you can access banking, and how your business is supervised.
European Union under MiCA
Crypto firms in the EU are licensed under the Markets in Crypto Assets Regulation, with authorisation granted by the firm’s home EU regulator and passported across all 27 member states.
MiCA is designed to create a single high standard regulatory framework for crypto businesses. It is best suited for firms that want long term access to European banking and institutional counterparties.
United Kingdom
Crypto businesses in the UK are regulated by the Financial Conduct Authority under the Money Laundering Regulations.
The FCA applies one of the highest regulatory standards globally. The process is demanding, but approval carries strong credibility with banks, payment providers, and institutional partners.
United Arab Emirates
Dubai crypto firms are licensed by the Virtual Assets Regulatory Authority and Abu Dhabi firms are supervised by the Financial Services Regulatory Authority of ADGM.
The UAE has built a dedicated crypto regulatory framework with government backing, zero or low tax, and strong regional banking access. It is well suited for exchanges, brokers, and regional hubs.
Singapore
Crypto firms in Singapore are licensed by the Monetary Authority of Singapore under the Payment Services Act.
Singapore is a major financial centre with high regulatory standards and strong credibility with banks and institutional investors, making it attractive for Asia Pacific focused platforms.
Hong Kong
Crypto exchanges and trading platforms are licensed by the Securities and Futures Commission.
Hong Kong operates a full crypto licensing regime with a strong legal system and access to Asian capital markets, particularly for trading and exchange businesses.
Australia
Crypto exchanges and custody providers are registered with AUSTRAC.
The Australian regime is AML and compliance focused, with relatively efficient processing and a strong domestic crypto market, making it suitable for early stage or regional businesses.
Canada
Crypto firms register as Money Services Businesses with FINTRAC.
Canada offers a clear registration pathway and access to North American banking, without the complexity of US state by state licensing.
Crypto License Requirements
Regulators assess every crypto licence application across the same core areas:
Local company and presence
A locally incorporated entity, physical office, and operational activity.
Management and ownership
Directors, shareholders, and senior managers must be approved through background and experience checks.
AML and transaction monitoring
KYC, blockchain analytics, sanctions screening, and suspicious activity reporting.
Custody and asset protection
Segregation of client assets, wallet controls, and security procedures.
IT and cybersecurity
Protection against hacking, fraud, and operational outages.
Capital and financial resources
Sufficient capital and liquidity to operate safely.
Business model and financials
Clear revenue model, customer base, and risk controls.
How Much Does a Crypto License Cost
Costs depend on jurisdiction and business model. They include regulator fees, capital requirements, local offices and staff, compliance and MLRO roles, legal and advisory work, and security and custody audits.
How the Crypto Licensing Process Works
Crypto licensing is a managed regulatory project. It involves choosing the jurisdiction, forming the local company, building compliance and governance frameworks, preparing financial and IT documentation, submitting the application, responding to regulator questions, and completing approval.
Buckingham Capital Consulting coordinates this entire process so your internal team can stay focused on building the business.
Most Asked Questions About Crypto Licensing
How experienced is Buckingham Capital Consulting?
Buckingham Capital Consulting has been helping financial and crypto businesses secure regulatory approvals across Europe and internationally for over 15 years.
How long does it take to get a crypto licence?
Most crypto licensing projects take between three and twelve months depending on the country and the type of licence.
What are the main requirements for a crypto licence?
A regulated company, approved management, sufficient capital, AML and transaction monitoring systems, secure custody or wallet controls, and detailed business documentation.
Do you provide end to end crypto licensing support?
Yes. Buckingham Capital Consulting manages jurisdiction selection, application preparation, regulator engagement, and post approval compliance.
Which country is best for a crypto licence?
The best jurisdiction depends on your business model, target customers, and banking strategy. The European Union, United Kingdom, UAE, Singapore, Hong Kong, Australia, and Canada are the most common choices.
Buckingham Capital Consulting
Buckingham Capital Consulting helps crypto exchanges, custody providers, payment platforms, and stablecoin issuers secure crypto licences and operate in regulated markets worldwide.
From choosing the right jurisdiction through to regulatory approval and ongoing compliance, we provide full end to end support for crypto businesses.
To discuss your crypto licence, call 020 7866 2512 or email info@buckinghamcapitalconsulting.co.uk.
