How to Get a Crypto Company License in the UK? 8 Steps
As cryptocurrency rules get stricter, regulation authorities set higher standards for businesses dealing with digital assets. Even with these strict regulations, Crypto Accountants always find the right solution for their clients. We keep up with the latest market trends and rules in different areas to find the best options. This blog will explain how to get a crypto company license in the UK.
Let’s get started!
Step 1: Set Up Your Company
Register Your Business
Register your business as a Private Limited Company. This is quite a straightforward procedure that can be done online!!
You will need to provide:
Company name
Address
Directors names
Office Requirement
Be sure to have a physical office for business based in the UK. Of course, this denotes the exact address to which the company will be located, not a PO Box. You will use this office address for correspondence and inspections.
Open a Corporate Account
Open a corporate bank account in the UK. It will be the account for conducting business and processing your cryptocurrency activities. Some banks may require certain things. Be prepared and have your company documents and identification ready.
Read more: UK Crypto Regulations!
Step 2: Prepare Your Application
Check FCA's Website
Visit the FCA website to download forms for registration. FCA is responsible for regulating all the crypto activities in the UK, and whatever information you need is written entirely up to date.
Carefully Fill Out
Carefully submit the application form. You must answer all questions correctly and support your answer by showing the systematic requirements of the questions. An application that needs to be completed or fulfill the criteria slows the process down.
Important Documents
These include:
Business Plan: A detailed template of your business model, market analysis, and financial forecast.
Marketing Plan: A description of the strategy used to promote your service.
Organizational Structure: Outline your firm's structure and identify the key individuals.
AML/CFT Framework: Add the structures, procedures, and controls of your anti-money laundering and counter-terrorism financing program.
Step 3: Pay the Application Fee
Your application fee is related to the nature of your business:
Income less than £250,000 = £2,000 fee
Income more than £250,000 = £10,000
You usually pay this fee online as you complete the application.
Note: The fee may vary depending on the latest policies by authorities.
Step 4: Submit Your Application
Submit your completed application form through the FCA’s Connect system. Connect is an online platform for managing regulatory applications and communications.
Step 5: FCA Review
Review Process
The FCA will assign a case officer to your application. They will consider your submission and contact you for further information or clarification.
If there are any requests for more details, respond quickly to the FCA; this will ensure that delay in processing an application can be averted.
Regulatory Check
The FCA will check your application against various databases and regulatory records to ensure everything is in order.
Step 6: Assessment and Decision
Standard Assessment
The FCA will assess whether your business meets the required financial conduct and operational integrity standards.
Grant or Deny
The FCA will decide whether to grant or refuse a Part 4A Permission. If you are approved, you will be issued a Scope of Permission. It will have the details of what you can undertake.
Step 7: Post-Authorization
Financial Services Register
Your details will be updated in the Financial Services Register, a public record of those firms and other authorized entities.
Annual Fee
An annual fee keeps your crypto company license valid by paying it annually. The amount varies with the size and nature of your business.
Step 8: Compliance with Requirements
Review and update compliance procedures at regular intervals.
Keep records and compliance measures updated. Revisit policies often enough to ensure they comply with changing regulations.
What If Things Go Wrong?
Application Withdrawn
Fee Refund: If you withdraw your application, the fee will not be refunded.
Rejected Application
Reasons and Resubmission: If your application gets rejected, the FCA will inform you of the reasons. You can address the issues and resubmit your application.
These steps can help you to be well-prepared to get a crypto company license in the UK and run your business smoothly!
Final Notes!
Consider getting advice from experts for help with your application. They can offer personalized support and guidance.
You can reach out to the Crypto Accountants for tax compliance and due diligence-related information.
Disclaimer: All the information provided in this article is for educational purposes only.