Why do crypto exchanges need licenses?
The official status makes the exchange attractive to users and partners, providing it with an influx of liquidity and capital investments. RBC Crypto tells which platforms have licenses related to the circulation of cryptocurrencies.
Cryptocurrency exchanges require licenses and regulation depending on the jurisdiction in which they operate. Exchanges that do not obtain the necessary licenses may face the risk of being blocked, fined, and losing customer trust. Regulators aim to create a stable and secure environment for users and market participants, which requires exchanges to fulfill a number of obligations.
Each country has its own laws and regulations governing the activities of financial institutions and cryptocurrency exchange platforms. Without the appropriate license, an exchange can be declared illegal and lose the right to conduct business, which will lead to the closure of the platform and sanctions. Users tend to trust regulated platforms, since the presence of a license indicates compliance with requirements for data protection, security of funds, and transparency of operations.
Regulators require licensed exchanges to implement mechanisms to protect customer funds, such as asset reserves, insurance, and the use of secure technologies for storing cryptocurrencies. Licenses also oblige exchanges to have procedures for resolving disputes and preventing user losses. One of the most important conditions is compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) standards. In the context of the global fight against financial crime, licensed exchanges are required to check their users through KYC (Know Your Customer) procedures and report suspicious transactions to the relevant authorities. This helps prevent cryptocurrencies from being used in illegal transactions.
To operate on multiple markets simultaneously, exchanges must have licenses in each jurisdiction. This allows them to provide services to citizens of different countries in accordance with local laws. For example, without a Money Service Business (MSB) license in the US, an exchange will not be able to work with American clients. For large financial institutions and investors, working with platforms that are under the supervision of regulators is an important factor. Having a license makes the exchange attractive to such partners, providing an additional influx of liquidity and capital investment.
Licensed exchanges are required to undergo periodic audits of financial operations and security procedures. This increases their resilience to financial crises, prevents bankruptcies, and ensures long-term stability. Ultimately, licenses help cryptocurrency exchanges legalize their activities, increase customer trust, and comply with international financial security standards. Without licenses, they risk being blocked in key markets and facing serious legal and reputational problems.
Types of licenses for crypto exchanges
Digital Asset Licenses: Some countries (e.g. Malta, Lithuania, Estonia) require a license for cryptocurrency operations, including storage, exchange, and trading.
Financial Services License. In countries with developed financial regulation, exchanges must meet requirements similar to those of traditional financial institutions. For example, the Australian Financial Services License (AFSL).
Registration as a payment processor. In some jurisdictions (e.g. the US), exchanges must obtain a Money Service Business (MSB) license issued by FinCEN and comply with anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations.
Securities license: If an exchange allows trading in tokens that are classified as securities (security tokens), it may need a license from a financial regulator, such as the SEC in the US or ESMA in the EU.
Registration with tax authorities. In some countries, crypto exchanges are required to report user and transaction information to tax authorities.
European MiCA (Markets in Crypto-Assets) regulation. The EU is preparing to implement the MiCA law, which will create uniform rules for cryptocurrency exchanges, including mandatory registration and compliance with investor protection and market stability standards.
Local requirements. Countries like Japan and South Korea have strict national laws that require registration with financial agencies and regular audits. Exchanges that fail to obtain the necessary licenses may face the risk of blocking their activities, fines, and loss of customer trust.
Virtual Asset Service Provider (VASP) License. This license is issued by the Dubai Virtual Asset Regulatory Authority (VARA)
Which exchanges have which licenses
Binance, one of the largest cryptocurrency exchanges in the world, holds a number of licenses and registrations in various jurisdictions, allowing it to provide services in accordance with local laws and regulations. According to the information provided on the company's official website, Binance holds the following licenses and registrations: France, Italy, Spain, Sweden, Dubai, Adu Dhabi, Kazakhstan, Indonesia, Brazil.
However, it is worth noting that Binance has faced regulatory difficulties in some countries. For example, in June 2023, the Financial Services and Markets Commission of Belgium ordered Binance to cease providing services in the country. In May 2023, Binance announced that it was exiting the Canadian market due to tightening local regulations. Additionally, in June 2023, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its founder Changpeng Zhao for allegedly violating securities laws.
OKX, one of the world’s leading cryptocurrency exchanges, holds a number of licenses that allow it to provide services in various jurisdictions. In January 2025, OKX became the first global exchange to receive a full license under the EU Markets in Cryptoassets Regulation (MiCA). This license was issued by the Malta Financial Services Authority (MFSA) and allows OKX to offer regulated cryptocurrency products and services to over 400 million people across Europe through its European Economic Area (EEA) hub in Malta.
With the MiCA licence, OKX plans to expand its services to all 30 EEA countries using a 'passporting' mechanism that allows companies registered and licensed in one EU country to provide their services in other EU countries under a single regulatory framework.
In Australia, OKX provides services through two subsidiaries. OKX Australia Pty Ltd is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and offers over-the-counter (OTC) spot cryptocurrency trading services to all Australian users. OKX Australia holds an Australian Financial Services License (AFSL) issued by the Australian Securities and Investments Commission (ASIC). This license allows the company to provide cryptocurrency derivatives trading services to a certain category of large clients.
In addition, OKX holds MTL licenses to operate in 32 US states, a Virtual Asset Regulatory Authority (VARA) license in Dubai, and a Major Payment Institution (MPI) license in Singapore.
Bybit is actively expanding its presence in the international market, obtaining licenses in various jurisdictions. At the moment, Bybit has licenses in the following countries: Kazakhstan, Georgia, United Arab Emirates (Dubai), Cyprus.
Coinbase holds Money Transmitter Licenses in most US states, including New York, where it holds a BitLicense issued by the New York State Department of Financial Services (NYDFS). Coinbase also holds an Electronic Money Services License issued by the Central Bank of Ireland, allowing it to operate in the EEA.
Kraken is registered in the United States as a Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department. In Canada, the exchange is registered as an MSB with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and in the European Union, Kraken operates through a UK-registered company, Payward Ltd., which is compliant with the EU's Fifth Anti-Money Laundering Directive (5AMLD).
Источник: cryptocurrency.tech
