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Modern payment systems and the banking system are outdated and in need of modernization. Many users especially do not like that government agencies can interfere in the affairs of clients, and block or intercept transactions, even if they do not have the right to do so. Initially, cryptocurrencies were developed to circumvent government regulation, so for a long time, it was considered a lot of drug dealers and smugglers. However, as time went on, this industry began to develop rapidly, and companies that wanted to work honestly began to work here. Governments of different countries can no longer turn a blind eye to the work of this industry and are trying to develop simple and understandable rules for their regulation. So, they offer companies willing to work legally to obtain a license. Turning to the experts you will find a reliable partner who will help you quickly and easily obtain crypto license.
The main reasons why you should get a crypto license
Many crypto companies are hesitant to get a crypto license. So, many crypto companies operate decentralized, and the crypto industry was designed to avoid regulation. In addition, obtaining a license is a rather complicated process that requires a lot of effort, special knowledge, patience, and money.
However, there are many advantages to obtaining a crypto license:
- You may not be afraid of problems with the law;
- You can constantly expand the list of markets;
- Attract additional investors;
- Increase the number of active users.
As mentioned, different jurisdictions develop different rules for regulating the crypto industry. Some countries ban the activities of such organizations entirely, while others offer crypto firms to register and obtain a license. Those organizations that refuse to obtain a work permit are automatically recognized as fraudsters, their platforms are immediately blocked, and the owners face significant problems with the law.
When you get a license, you only get permission to operate in a specific jurisdiction, so to legally work in a new market, you need to get an additional license. Otherwise, you will have the same problems with the law as if you do not have a permit.
Today you are unlikely to find investors who will agree to invest in your organization if it is not licensed. Having a work permit is the primary confirmation that your company works honestly and is not a fraudster, which means you can be trusted.
Without a license, you cannot advertise your work to attract new clients, which could attract the attention of regulators.
Why do government agencies seek to regulate the crypto industry?
Russia has an aphorism: “If you can’t beat corruption, you can lead it.” This principle can be applied to the crypto industry as well. So, if you cannot or do not want to block the work of crypto companies completely, you need to come up with rules by which they will work.
In addition, legal entities must pay taxes for the country’s economy to work stably. So, the country’s government is interested in the fact that crypto companies pay taxes, making huge profits, which means they can replenish the treasury well.
It is also worth saying that the government bodies of developed countries take care of their residents. They want to protect their citizens from financial terrorism, scammers, and other intruders. That is why they want to keep a close eye on all companies that provide financial services.
Because of this, government agencies place a lot of emphasis on validating KYC and AML policies. So, companies that want to work honestly cannot serve people who are involved in fraud or money laundering.
In the end
Obtaining a license is a critical stage in every crypto company’s existence. Getting a work permit can be extremely difficult. However, it will be beneficial, as it will help your company operate legally and actively develop, improve and scale as quickly as possible. Without a work permit, you will not be able to work in a stable mode, advertise and grow your audience.
