In today’s world, the crypto industry is already part of the world community. Every day cryptocurrency becomes universally recognized. And also begins to enter literally every sphere of life related to finance. In this regard, some States are already beginning to introduce digital assets into the legal arena. Many countries can already issue crypto licenses for official activities of companies that provide crypto-currency services.
The importance of crypto license
In order to obtain a license, a crypto company must undergo a thorough review by the state regulatory authorities. The results of the audit will show how honest the company is and whether it can operate. If everything is okay, the company will receive a crypto license. And it can legally and officially operate in the country. The company will work according to the laws and regulations of the state: fair and open. And most importantly, it will pay taxes. Additionally, taxes may be very high given the enormous popularity of cryptocurrencies and the enormous monthly revenue of crypto firms. Once licensed, the crypto project demonstrates its commitment to conducting business in a legitimate, open, and transparent manner. It is not a swindling business looking to take advantage of trusting customers. To reach an ever-growing audience, it seeks to acquire new, sizable markets and to collaborate with numerous nations throughout the world. As a result, the business gains a lot of new clients and enters new areas.
A token issuer is a person who publicly offers tokens on his own behalf or on behalf of a customer on a professional basis. Registration is optional for people who issue tokens on their own behalf or on behalf of the client on a non-professional basis. A token generator is a person who generates one or more tokens. The token generator must ensure, by appropriate means, that the transfer of the token also provides a direct transfer of the granted right, and that any other transfer of rights other than by token is excluded. The person who stores TT keys for clients. His duties also include third-party transactions. TT key depositors can only store copies of clients’ keys. This means that the client still has access to tokens. The person who does not disclose the systematization proxy stores tokens to TT systems on his own behalf or for the benefit of third parties, and has the authority to conduct transactions on behalf of clients.
TT service providers that have a registered office or residence are obliged to apply to FMA to be included in the Register of TT service providers, before starting a professional activity in this field. To be included in the Register, applicants must meet the following requirements to be competent, reliable, meet the technical requirements, to have a registered office or permanent residence, have the minimum necessary capital, an organizational structure suitable for business and procedures to resolve conflicts of interest.
Established internal procedures and controls and specific internal control mechanisms. According to the law, the time limit for the consideration of the application by the regulator is 3 months.
In order to make the cryptocurrency business more transparent and reliable, Slovakia follows the rules of combating money laundering (hereinafter referred to as «AML») and financing of terrorism (hereinafter referred to as «CFT») established by the EU. To comply with AML/CFT rules, crypto companies must adhere to the following principles. Determine the nature and complexity of cryptographic operations and client types in the context of the relevant rules. Develop and implement policies and procedures to manage the risks associated with money-laundering and the financing of terrorism. To ensure that personnel are adequately trained and able to navigate legislation relating to money-laundering, the financing of terrorism and the protection of data relating to the mitigation of financial crime, as well as the identification of clients and situations, high risk. Development and implementation of CDD (customer due diligence) and KYC (know your client) policies that ensure customer identification throughout the business relationship. Establish internal procedures to identify political actors. Continuous monitoring of operations in accordance with the principles of risk assessment. Report suspicious transactions and customers to the competent authorities in accordance with the AML Act.