In accordance with the European Union Directive AMLD5 and new German law, cryptocurrency exchange and e-wallet service providers should comply with EU anti-money laundering and terrorist financing regulations. Legal act establishes provisions oblige service providers to verify their customers, segment customers by the risk groups and inform the regulator on subject of suspicious and non-standard transactions.
Such introduction leads to additional bureaucratic procedures and extra costs for license / authorization obtainment. At the same time, the advantages can be attributed to the development and influx of investments into the crypto industry due to the regulated environment of cryptocurrencies and virtual values in Germany.
If your company is already engaged or intended to engage in one of the listed below activities, it may be the subject of an appropriate authorization / license.
- Exchange of virtual values against fiat currency and vice versa
- Exchange of virtual values against other type of virtual values (BTC to ETH; etc.)
- Storage of virtual values on behalf of customers
- Storage of fiat currency on behalf of customers for subsequent exchange for virtual values
- Virtual value transactions between customer e-wallets
- decentralized (as LocalBitcoins)
- centralized (as Binance, Kraken, Bitstamp)
- Issuance of loans in virtual values
- Funds and investment associations in virtual values
- Gambling (virtual values are used as game currency)
- Providing investment advice on investing virtual values
- ICO (initial coin offering)
- STO (security token offering)
- IEO (initial exchange offering)
Depending on your business model, one or more authorizations / licenses from BaFin may be required for the above activities. VEGO Consult will conduct thorough analysis of your business model and provide you with the necessary list of requirements, in accordance with German law. Lawyers will guide your company through the entire process of license obtainment, draw up internal AML / KYC procedures and assist you with supporting legal documents.
To learn more or to order this service, contact us by the following phone number: +4989 9982804-50 or leave a request through the feedback form.