Webinar: How to Start a Cryptocurrency Exchange Part 2

hello everyone and thank you so much for joining us for this Empire global partners webinar and welcome back to those who have been with us on prior webinars today we will continue our training on how to start a cryptocurrency exchange this is the second part of that training so we will go into greater detail and really dive into the benefits of establishing your crypto currency exchange in the highly recommended destination of Kazakhstan and we'll go into detail about the licensing process there if you were with us for the first part of this series we talked about the basics of how an exchange works types of tokens and coins some legal considerations and we introduced you to the benefits of Kazakhstan we will do a quick recap today of that webinar and I'll just summarize the key takeaways so for those of you who did not attend that session we highly suggest that you take a little time to view it in its entirety it is available on our YouTube channel at Empire global partners and we covered a lot of great information in that webinar and that will really help you as you get started in the process so be sure to check it out if you are new to our webinars i'm pam sullivan webinar analyst for empire global partners and as always i'm glad to be your virtual guide throughout this training and to be here to help as you navigate the cryptocurrency world before we get started i wanted to direct your attention to the email address here on the screen info at Empire global dot partners this is the best way to get in touch with us about anything we go over here today and we love hearing from you we welcome all questions and comments so rather than using the chat box that you see below please use this email address instead to send your questions they will come directly to our representatives who monitor this email 24/7 so I assure you that you will receive a reply back to all of your questions quickly and confidentially Leonel a Ruth is the expert on the topic of cryptocurrency at Empire global partners and he has developed this training session for us in fact Leonel is well known across the globe as an expert in the cryptocurrency online gaming and international business representing thousands of companies lien Ellis senior managing counsel for Empire global partners and he is legal counsel and advisor for hundreds of companies in over 40 countries Empire global partners is an international consultancy that is served clients from all over the world with a network of attorneys accountants and consultants who are pioneers in strategic legal planning for online casinos banking and cryptocurrency they represent hundreds of cryptocurrency companies and several cryptocurrency exchanges where top tokens are traded so be sure to check them out online at WWF our global partners all content provided here is for informational purposes only and it's not to be substituted for legal advice cryptocurrency exchange is a highly regulated sector and it is essential that all steps that you take when considering starting or operating your own exchange are in compliance with the law the experts at Empire global partners have worked with thousands of clients to help them make the right decisions for their particular situation and jurisdiction and minimize any extra costs or fines that could arise from legal oversight it is highly recommended to get in touch with your legal team as soon as possible into this process in this webinar we will primarily focus on how to establish a crypto currency exchange in Kazakhstan before you start that process though it is important to have a strong understanding of the legal framework and all of the regulatory authorities because these will determine the necessary steps to be taken when opening your exchange so we will spend some time to go over all of that in detail and from there we will go on to talk about the steps which need to be taken on your part before opening your exchange then we will go over all of the documentary requirements which need to be fulfilled and we will end the webinar with a discussion on the time and cost factors for opening in exchange and weaved all the way through our session today we will focus specifically on all of the unique benefits that establishing your exchange in Kazakhstan has to offer and before we move too far ahead though let's do a quick recap of what we discussed in webinar 1 the first part of this training which was held previously in that session we covered the steps to take to open a cryptocurrency exchange we discussed the various licenses required how to get started the various steps which you need to follow before starting the exchange and we also covered the licensing requirements for your crypto currency exchange and that process begins by figuring out which tokens you want to list on your exchange and this is essential because this will determine your licensing requirements if you want to open a cryptocurrency exchange that also deals with security tokens you will need a special license that enables you to deal with securities if you want to deal with only utility tokens then you only need a license to operate a crypto currency exchange however based on your business plans you may need different licenses for your crypto currency exchange the different licenses relate to the facility to have a wallet for your exchange or the ability to provide escrow transactions for your customers it is also essential that you have a clear business plan because that will determine the need for licensing based on the specific jurisdiction we also focused on the ancillary service providers like banks and payment gateways that are essential for the proper functioning of a crypto currency exchange it is these service providers that enable you to receive payments and disperse of funds to your customers the presence of these ancillary service providers is essential in any jurisdiction where you would like to operate and something that I always emphasize and it's so important to remember opening a crypto currency exchange involves not only a lot of capital it also requires specialized knowledge so it is strongly recommended that you get in touch with experts like empire global right from the beginning if you have already started on the path to opening your exchange it's not too late you can still get in touch with the experts at Empire they will jump right in and help you resolve any hurdles which you might be facing so now I think we're ready to jump right into learning all about Kazakhstan the preferred destination for opening your crypto currency exchange to start let me give you a short introduction to Kazakhstan an emerging global financial services destination Kazakhstan is a highly stable country in Central Asia which strives to change the dimensions of its economy by encouraging financial services sector and the government understands that to encourage the financial services sector the ancillary service providers like prominent global banks and payment processors should also be a part of the process and the government has encouraged these ancillary service providers to also support new and upcoming businesses such as cryptocurrency businesses for those who do decide to establish a cryptocurrency exchange in Kazakhstan guidance is available from Empire global partners at all stages of the business establishment this guidance is also available for any financial service business that you may want to operate in Kazakhstan now let us delve into the details of what you can actually do with a license for a cryptocurrency exchange in Kazakhstan the first advantage of a license from Kazakhstan is that it enables you to deal with customers from across the globe there's no geographic restriction on dealing with customers from any country with a crypto currency exchange customers will be able to exchange fiat currencies into cryptocurrencies and vice versa customers will also receive the ability to change between different cryptocurrencies Kazakhstan is unique because it provides an integrated license which also allows exchange owners to deal in both utility tokens and security tokens this is very beneficial for you as an exchange operator you need not obtain a separate license for dealing in securities because of the wide scope of possibilities for the license you can conduct initial coin offerings initial exchange offerings initial token offerings and a wide variety of crowd sales for the tokens as required by the token issuer the single license also enables you to provide a wallet facilities for cryptocurrencies and facilities for trading in complex products related to cryptocurrencies the license also enables you to deal with multiple foreign currencies and also provides financial advisory services linked to investments to cryptocurrencies this shows that Kazakhstan that single license is very flexible and enables you to operate many related businesses that might otherwise require up multiple licenses in other jurisdictions something I'd like to highlight before moving forward is a crucial piece of advice and that it's highly recommended that you get in touch with an expert right from the moment you start considering operating your own cryptocurrency exchange cryptocurrencies are a highly regulated sector and it is essential that all steps you take are in compliance with the law an expert will help you make the right decisions and also minimize any extra costs or fines that may arise from legal oversight so please be sure to reach out to an expert sooner rather than later into the process now let's take just a minute to go back to the basics to set the foundation for the advantages of Kazakhstan license the first factor is that the license can be of two types centralized licenses and decentralized licenses a Kazakhstan license enables you to open any of the two types of licenses with no restrictions this is helpful because depending on your business considerations you might need to change the type of license and you might need to change your business plan depending on the market condition there are so many advantages of opening the cryptocurrency exchange in Kazakhstan to start with the government of Kazakhstan is a supporter of the development of fine services this is linked to favorable legislation and favorable policies for crypto currency exchanges a hurdle that is faced by many crypto currency exchange operators is that prominent banks are not willing to provide services for the exchange the availability of banks means that you can receive and disperse fiat currencies to customers with no restrictions since these banks are all prominent banks they also provide you the flexibility to transfer money across the globe if you comply with their requirements the next major benefit is that 100% of foreign ownership is possible for crypto currency exchanges which open in Kazakhstan this might be very attractive for all possible entrepreneurs who would like to establish their business in the country because they do not look for a local partner or a local shareholder this provides the investor with much-needed flexibility to run an operative business as they desire let us now look into the specific advantages of opening an exchange in Kazakhstan in terms of time cost and expertise opening and exchange takes around six to eight weeks which is quick compared to the global standards the cost of the license is also amongst the cheapest and in most cases the total cost will not exceed 50,000 euros keep in mind that empire global has experience and expertise from assisting hundreds of customers related to cryptocurrency businesses across the globe and they can help you open a cryptocurrency exchange and Kazakhstan with the minimum possible cost and very quickly we will move on now to the licensing process in Kazakhstan there are three key regulatory authorities in the licensing process for a cryptocurrency the first among them is the company's registry of Kazakhstan the company's registry provides the registration of your business in the local companies register and also provides the business identification number which is essential to operating in because Stan the second agency is the agency of the Republic of Kazakhstan for the regulation and development of the financial market this agency is interested with the regulations of the financial services sector in the country and plays a key role in approving the business and last but not least is the Ministry of Economy which regulates businesses in the financial services sector in the country I want to give you an overall look at the key steps you'll need to take to make sure you're ready and you can apply for your license and then we'll get into the specifics what you'll need to do initially is gather all of the documentation and make sure that you have everything you'll need for your application a very small number of documents are actually required which we'll go over shortly then you will need to proceed with the incorporation of your company and this is essential to your application after your company has been incorporated the application can then be submitted for your license I'll go over the steps now in some greater detail as I just mentioned your business has to be incorporated before you apply for your license to do this there are only three key documents that are required the first is a copy of your passport and the second is a power of attorney that is issued to Empire global partners or whoever is submitting the application on your behalf the third is a due diligence questionnaire that has to be filled out by you and then sent to Empire by email and not to worry they will work with you on how to send in the questionnaire what file format it should be in etc and something to be aware of is that it is essential for all of the documents but particularly the copy of your passport and the power of attorney that they have a postal certification and for those who are from a country that is not part of the Hague a postal convention Empire global will arrange for an alternative process and those details can be sought after establishing contacts for that purpose the process of establishing the company itself takes around one week after all of the documents are submitted and once the company is registered a link will be provided to you for the commercial register of Kazakhstan and then you can verify the establishment of the company after entry into the commercial register a business identification number is provided which is the single identification number of the company for all purposes such as taxation and statistical agencies so there is no need for separate registration with all those agencies and a single number can be used the next step is registration as a financial services provider with the Ministry of Economy this is essential because this registration allows you to operate in the financial services sector as a cryptocurrency exchange the documentation for this purpose including the application forums will be filled with details by Empire and will be submitted to the ministry for approval this is normally done in parallel with the company registration process and the final approval will be made by the Ministry of Economy after which it will be registered as an entity that is a financial services provider moving ahead now the last permission that you need to acquire is from the agency on the Republic of Kazakhstan for regulation and the development of the financial market this agency is the financial services regulator for Kazakhstan and its permission is crucial to operating the exchange in this process all of the documentation such as the business description application forms and personal information are all prepared and the documentation is submitted to the agency empire global will appoint a lawyer who will defend your application for your agency as required the final permission from the agency normally takes around four weeks after which you can commence your business so along with all these permissions Empire goes an extra step for its clients in parallel to the application process for the licenses they will handle some other things that will be needed such as a bank account so you can commence your business with a full Iban access for the company axis will also be provided for service providers which will enable you to establish a payment gateway to conduct your business after opening your bank account or any other accounts rest assured that all of the relevant documentation and your account information will be mailed to you right away let's wrap up by highlighting again the key advantages of establishing your exchange in Kazakhstan the first is a very flexible license which we highlighted in the beginning and a single license allows you to conduct all firms of financial services such as foreign exchange a wallet services and brokerage services the second is the globally recognized nature of these licenses as a stable country with well-developed regulatory system Kazakhstan is renowned across the world and the key advantage is the ability to accept foreign customers for which there's no restriction in the Kazakhstan license so you'll be ready to operate in all jurisdictions across the world unless there is a local restriction on operating in such businesses focusing on the flexibility of the licenses I'd like to highlight here that you could also operate additional services such as emoney foreign exchange payment service provider remittance services or you could even establish a hedge fund with the same license in Kazakhstan this flexibility allows you to ensure that you can provide all required financial services to your customers under one roof by this point you may be thinking of some things that could potentially be of concern to you about the process of opening your exchange and usually these concerns relate to tax issues questions about the possibility to appoint nominees requirements for local staff and office and the need to appoint a compliance officer and a local accountant something else that could be of major concern to you is that a significant sum of paid up capital is needed however you will see that in Kazakhstan all of these issues are resolved because while there might be a default tax of 20% that could be reduced to 0% with prior consultation and planning nominees can be appointed and there is no requirement for local office staff there is also no requirement for a compliance officer an empire global will establish contact with an english-speaking accountant for you who will assist you in making all of your annual filing so there's no language hurdle there and the cherry on top here is that there's no requirement for any paid up capital so you could establish your business at minimum cost in Kazakhstan as you can see there are so many things to consider as you navigate the cryptocurrency world so if you are thinking about setting up your own exchange or if you have any confusion or questions get in touch with empire global right away they can give you complete guidance about the entire process and as with so many of their clients they are your team of experienced and competent legal professionals with years of experience in the crypto currency exchange sector and they are here to answer your questions we love hearing from you and we welcome all comments and feedback about this session or any other topics you would like to see in future webinars and be sure to submit questions to info at Empire global dot partners that will come directly to our representatives who monitor this email 24/7 also check out the website you can get in touch with them there at a WWE Empire global partners and we would love to connect with you on social media as well we're on Facebook at Empire global partners Twitter at Empire Global's Instagram at Empire global partners and we're also on YouTube on behalf of Empire global partners I want to thank you so much for joining us and we'll see you next time [Music]

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