Cryptolicense in the UK: Growth and Stability

The UK maintains a comprehensive regulatory framework for crypto assets. This framework aims to protect consumers and combat illicit activities while encouraging innovation within the sector. Crypto businesses operating in the UK must comply with stringent AML/CFT) regulations, overseen by the Financial Conduct Authority (FCA). The regulatory environment provides a degree of legitimacy and consumer trust for the UK-based crypto businesses. This can open up opportunities for expansion and partnerships within the broader financial ecosystem.

Cryptoregulations in the UK is clear and most of the processes can be finished online

Key Numbers about Cryptolicense in the UK

up to 6 months

term of setting up new project

25%

corporate income tax (CIT) rate

£1

minimal contribution for share capital

20%

withholding tax (WHT) rate

no

maximum number of shareholders

10%

capital gains tax (CGT) rate

Legal Opinion about Cryptolicense in the UK

Ganna Voievodina

Manimama, CEO

"Cryptolicense in the United Kingdom is excellent choise. It combines both acessebility to non-stop growing market with more than 65 million potential customers and reliable and stable jurisdiction. With this license you can on-board client from all countries, where company substance is not prescribed. Contact Manimama and we help you in setting up your cryptobusiness in the UK and even more".

Types of Activities with a License

Exchange crypto to crypto: the FCA licensees are authorized to facilitate the exchange of various virtual assets, including utility tokens and coins, ensuring diversified trading options.

Exchange fiat to crypto and crypto to fiat: with a license you will be able to execute the conversion between cryptocurrency and fiat currencies, offering customers the flexibility to transact in multiple currencies.

Custodial wallet services: with license you can offer a secure means of storing cryptocurrencies on behalf of users, with operators having the ability to open wallets while maintaining control over private keys.

Operating as crypto ATM: the FCA license enables you to operate a machine which utilises automated processes to exchange cryptoassets for money or money for cryptoassets

Choose the Package of Services

Advanced

Exhaustive set up of company infrastructure for the start of operational activity

€35,000

  • Company formation in the UK
  • The FCA's authorization
  • Full set of necessary documents
  • Individual AML/KYC policies
  • Address of registration for 1 year
  • Handling the communication with the FCA
  • Opening C2B account for crypto activities
  • Accounting services for 1 year
  • Order now

    Basic

    The FCA's license under the minimum regulatory requirements

    €30,000

  • Company formation in the UK
  • The FCA's authorization
  • Full set of necessary documents
  • Standard AML/KYC policies
  • Order now

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    Step by Step Description

    Step 1. Initial Setup

  • Initiating a preliminary project assessment
  • Gathering necessary documents for preliminary KYC check
  • Creating a business model
  • Duration: up to 5 days

    Step 2. Company Registration

  • Verification of the availability and reserve of the selected company name in the Commercial Register
  • Preparing necessary corporate documents according to business model
  • Incorporating the company's data into the Commercial Register
  • Duration: up to 3 days. You may execute non-cryptocurrency activities from this step (e.g. software development)

    Step 3. Obtaining a cryptolicense

  • Preparation full set of necessary documents to get a license
  • Recruitment and education of a Director / AML officer for the company (if necessary)
  • Submit an application to the FCA and handling all communication to maximize chances of obtaining a license
  • Duration: up to 6 months (including with the FCA's assessment)

    Step 4. Opening B2B & C2B corporate accounts

  • Initial evaluation and identification of a suitable Financial Institution for corporate account setup
  • Preparation of notarized corporate documents required for the account opening process
  • Early discussions with the payment institution and continuous assistance to the client during the account opening procedure
  • Duration: up to 3 weeks

    Understanding the UK's Requirements

    Business in cryptocurrency sphere in the UK shall be ready to surpass strict evaluation before getting license. However, you may enjoy the UK's market with its stability and high-level customers. Main documents and information that must be submitted are following:
  • Programme of operations
  • Regulatory business plan
  • Structural organisation chart
  • Jurisdictions list (where you are planning to provide your services)
  • IT systems description
  • Company details
  • Individuals, beneficial owners and close links description
  • Governance arrangements and internal control mechanisms
  • Anti-money laundering/counter terrorist finance (AML/CTF) framework
  • Business-wide risk assessment
  • Customer risk assessment
  • Financial promotions
  • Travel rule
  • All crypto-asset public keys/wallet addresses
  • Customer on-boarding process
  • Flow of funds and customer journey diagram
  • Ongoing monitoring and transaction monitoring procedures
  • Record-keeping and recording procedures
  • It is a minimum and this list may be wider if the FCA ask you to provide more information. After getting a license you may execute a wide range of services to your customers, including cryptocurrency exchange services, custodial wallets and more around all Britain and other countries. The UK is a great base to expand and start your growth.

    The UK reguslatory framework is strict, but the UK's market is very financial attractive. The UK is one of the biggest economies in the world with extremely stable political system

    Taxes in the UK

    Tax system in the UK is clear. Government is very open-minded and do all things to reduce complexity of relations with business to minimum

      Corporate Income Tax (CIT)
    • Rate: The standard CIT rate in the UK is currently 25%
    • Tax Base: CIT is charged on a company's worldwide profits, including income from trading activities, investments, and the sale of assets
      Withholding Tax (WHT)
    • Rates:
      • Dividends: the UK does not generally impose WHT on dividends paid to non-residents
      • Interest: A 20% WHT normally applies to interest payments to non-residents. However, exemptions or reduced rates may apply under double taxation treaties
      • Royalties: A 20% WHT is generally applied to royalty payments to non-residents, but double taxation treaties may provide for exemptions or reduced rates
    • Tax Base: WHT is applied to specific income types (dividends, interest, royalties) paid to non-residents

    Client Feedbacks

    "Manimama's dedication to client is great. Applying for their services prooved it".

    "Our work with Manimama gave us a lot of opportunities. We started our business swiftly and it was a great success".

    "WhiteBit is proud to tell you about Manimama. These lawyers is fantastic partners, forget about problems".

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