Crypto License. What Is It and Why Is It Important In 2023?

All companies that want to operate in adherence to the law in every aspect must apply for an appropriate license. Crypto companies are not an exception to this. Every business that wants to legitimize its activity must apply for a license, be it a crypto license in Poland or any other jurisdiction deemed fit.

There exists a multitude of reasons as to why it is very important for every business to obtain a crypto license and boost their credibility. Some of the most important ones include:

• More business opportunities due to legitimacy;

• Ability to partake in government projects and initiatives;

• Huge growth potential;

• Increased compliance and governance;

• Increased revenue.

What License Options Are Available in Europe?

Europe has a vast and differing regulatory approach. Even within the European Union, there exist several different directives and different approaches to the handling of crypto businesses. The above-mentioned Poland is front and center in this field and should be able to serve as a perfect example of how to approach regulation. Other noteworthy examples are Belgium, Greece, Malta, Iceland, and Estonia. Each of these offers a different set of advantages but ultimately fails to attract foreign investors as much as Poland. Not to say that this country would be a perfect option for EVERY project, no. Each case should be evaluated based on its own merits and goals to narrow down the options and determine what regulatory path is best suited for the project.

What Attracts Crypto Entrepreneurs to Poland to Obtain a Crypto License?

The first thing that attracts investors to Poland is the simple fact that it is a great country with robust economic growth. Because of its highly educated workforce, its large and diverse population, and its reputation as a progressive and innovative nation, the country often ranks among the world's top destinations for crypto businesses from all over the globe. Of course, additional reasons why people select Poland will be revealed in the "Benefits of a Crypto License in Poland" section of this text.

 How Do I Get a Crypto License in Poland?

The process of acquiring a license in Poland is fairly straightforward. We can break it down into four main steps.

• Step 01 - Collecting documentation and preparation. First, your project must be assessed by a company formation specialist or any other expert that understands the intricacies of the Polish legal framework and the legal status of the businesses. You will also gather all documentation for KYC/AML purposes, prepare the power of attorney, come up with a name for your business, and complete several other tasks.

• Step 02 - Company registration. Before you acquire a license, you need to register your company. You will need to translate some documents into Polish and obtain PESEL (Polish Tax Number) after business registration.

• Step 03 - Licensing. You will need to notify Polish authorities about the types of crypto-related endeavors that you will be running. This is a fairly long procedure that can take up to 3 weeks. There is also the appointment of an AML Officer and several other important actions that must be taken.

• Step 04 - Business bank account creation. Finding a crypto-friendly bank and creating a new account can prove to be a fairly difficult task.

In total, the process can take as little as 6 weeks.

For Which Companies Will a Crypto License Be Arranged in Poland?

The companies providing the following types of services are classified as crypto companies in Poland:

1. Exchange of assets. The provision of services that allow for the acquisition or exchange of virtual assets for fiat money is included here. Typically, a service provider would only permit transactions between themselves and their client, and they will give a list of assets that are acceptable to them.

2. Transfer of assets. An asset transfer occurs when a service provider facilitates the buying and selling of virtual goods between unrelated parties. Customers of asset exchanges may utilize their virtual assets as a form of payment or value transfer.

3. Marketplace, intermediary for sale/purchase. In this context, "intermediary service" refers to any business that enables the buying, selling or trading of virtual assets. To qualify as an intermediary, a business must provide a service that enables its clients to carry out financial transactions at their direction without needing to do it themselves.

4. Custodian wallet. The term refers to the storing of a client's digital assets in a secure business-owned wallet. This service is often provided either directly by the service provider or through a separate solution provider that handles the service's underlying technology.

Also, the current legal framework offers broader definitions and includes more crypto-related activities.

Benefits of a Crypto License in Poland

The following are some benefits that a crypto license can bring to your business if you choose to set up shop in Poland specifically:

• Quick setup. It takes only 6 weeks and, in some cases, as little as 2 weeks to get a license in Poland.

• Booming industry. The Polish crypto market is projected to reach a very high value by 2024.

• Great economy. This nation's economy is striving, with GDP increasing by over 5% in 2021.

• Legal flexibility. The framework is progressive and there is a very large number of choices for businesses to consider when it comes to creating a business.

• Seamless registration. It is very easy to establish a business and to obtain a license as well.

• Inexpensive compared to other countries with similarly strong economies.

Of course, this list does not encompass every aspect that is favorable to setting up your business in Poland. You need to book a consultation with a professional to find out why this country will suit your project and give you a solid idea of the things you need to be thinking about.

Conclusions

Not too many countries in Europe offer the benefits that Poland does. Advantageous factors include the country's robust economy, superior legal system, cheap cost of doing business, and rapid blockchain technology adoption. Making your ambitions come true and achieving success here is easier than everywhere else in the world.