Call us Contact us now
+44 (2038) 07 15 07

Obtain UK Crypto Exchange Company Formation

UK Crypto License

Starting your Crypto Exchange company in the UK is a great choice due to the absence of any specific regulation of the industry by the Financial Conduct Authority. However, it is highly recommended that Crypto Exchange Companies completed an analysis of their planned activity in order to clarify whether the particular Crypto Exchange project complies with the legislation of the United Kingdom.
Starting your Crypto Exchange company in the UK is a great choice due to the absence of any specific regulation of the industry by the Financial Conduct Authority. However, it is highly recommended that Crypto Exchange Companies completed an analysis of their planned activity in order to clarify whether the particular Crypto Exchange project complies with the legislation of the United Kingdom.
Back to list

Licensing Services

Timeframe: 9 - 12 months

Minimum paid up capital: There  is no specific minimum share capital requirement for obtaining a crypto  license in the UK. However, companies must demonstrate sufficient  financial stability to meet operational and regulatory demands.


Overview

In  April 2022, the UK Government committed to establishing a new  regulatory regime for crypto assets, balancing risks and opportunities.  On February 1, 2023, a consultation paper was published outlining  proposals for this future regime. These build on previous plans from Her Majesty’s Treasury, focusing on stablecoins and cryptoasset financial development. The aim is to position the UK as a leader in cryptoasset technology and innovation, fostering a supportive environment for  service providers while protecting consumers and ensuring financial  stability.

APPLY NOW!Not sure what Licensing service to choose? Leave your application online! We will get back to you with a free 15 minutes consultation.

Do not hesitate to submit the form below and our team will contact you shortly!


Licensing Criteria and Procedures for Applying for UK Crypto Exchange Company Setup

Notable features
Procedure
Documents Required

General information


Company structure

  • A minimum of one shareholder is required to establish a crypto business in the UK. The shareholder can be an individual or a corporate entity.
  • At least one director is necessary, and this director must be a resident of the UK to ensure compliance with local regulations..


Confidentiality

  • Beneficial owners' details – disclosed to the Authorities
  • Shareholders' details – part of public record
  • Directors' details – part of public record


Taxation

Crypto businesses in the UK are subject to standard corporate tax rates. Capital gains tax applies to the disposal of cryptocurrencies, and income tax is applicable if cryptocurrency is received as payment for goods or services. Mining activities are also considered taxable.


Accounting requirements

  • Filing annual report is obligatory


Secretary - Required

Registered office - A physical office in the UK is required. This office serves as the company's registered address and ensures that the business is managed and controlled from within the country.

Local employees: While there is no strict mandate for local employees, having a local presence with key staff, especially in compliance roles, is highly recommended to meet regulatory expectations and facilitate operations.


  • Registration with FCA: Companies must register with the Financial Conduct Authority (FCA) under the AML/CTF crypto asset registration regime.
  • Documentation: Prepare and submit necessary documents including business plans, AML/CFT policies, and details of key personnel.
  • Application Submission: Complete the application form and pay the registration fee (GBP 2,000 for companies with annual revenues under GBP 250,000, and GBP 10,000 for revenues above this threshold).
  • FCA Review: The FCA reviews the application, conducts assessments, and may request additional information.
  • Approval: Upon successful review, the FCA grants authorization for the crypto activities.




Key documents required for the application include:

  • Directors’ and Shareholders’ Resumes: Confirming experience and qualifications.
  • Business Plan: Detailed plan outlining operations and compliance measures.
  • AML/CFT Policies: Anti-money laundering and counter-terrorist financing procedures.
  • Risk Management Policy: Measures to ensure customer fund safety.
  • Marketing Plan: Strategies for customer acquisition and retention.
  • Company Structure: Information on corporate structure and outsourcing arrangements.
  • IT Systems: Details of IT security policies and procedures.
  • Customer Onboarding: Procedures for customer due diligence and enhanced due diligence.
  • Transaction Monitoring: Processes for monitoring and reporting transactions.
  • Record Keeping: Documentation of procedures for maintaining records and compliance with regulatory requirements.