Setting up a crypto exchange in 2025 means one thing first getting licensed. Without a license, you can’t run legally. But the rules aren’t the same everywhere. Each country has its own way of doing things. Here’s a clear and straight guide to help you understand what’s needed, what to watch out for, and how to get started.
Crypto Exchange License
What Is a Crypto Exchange License?
It’s permission from a government to run a crypto exchange. You need it to legally let users buy, sell, or trade crypto on your platform.
If there’s no license, you’re in big trouble. You could face bans, fines, or even jail in some countries.
Know the Type of License You Need
There are several types depending on what your exchange does
Fiat-to-Crypto Exchange License: Lets people trade fiat (like USD) for crypto.
Crypto-to-Crypto Exchange License: Needed for exchanges that don’t deal in fiat.
Custodial Wallet License: If you hold users’ crypto, you’ll need this.
Broker or OTC License: If your exchange includes over-the-counter trading.
Derivatives/Leverage License: If you offer futures, options, or margin trading.
Money Transmitter License: For handling funds between people.
Some countries combine all of this into one license. Others split it across different regulators.
Pick a Friendly Jurisdiction
These places are known for faster approvals and clear rules:
Estonia: Simple registration, but now stricter about KYC and office requirements.
Lithuania: Still crypto-friendly, but they’re tightening controls too.
Dubai (VARA): Gaining ground fast. Transparent, structured, and crypto-positive.
El Salvador: Bitcoin is legal tender here. Simple process, but limited infrastructure.
Bermuda and BVI: Good for companies targeting offshore users.
In 2025, several African countries are quietly becoming licensing hotspots due to cheaper compliance and fast-track frameworks. Most people aren’t watching this trend yet.
Prepare These Before You App
You can’t just fill out a form and get approved:
Company Incorporation: You must form a legal company in the country.
Compliance Officer: You need someone with experience in AML (anti-money laundering).
KYC/AML System: Regulators want proof that you can identify and monitor users.
Business Plan: It should show how you’ll operate, make money, and stay compliant.
Fund Source Documents: Where your startup capital comes from. They want to see it’s clean.
Cold and Hot Wallet Plans: They’ll check how you’ll store crypto safely.
Some regulators now ask for smart contract audit reports if your exchange uses on-chain logic. This is new for 2025, and most founders don’t expect it.
Application and Review
The time to process can range from 3 weeks to 6 months.
What slows things down:
Missing documents
Poor AML setup
Unclear business structure
Unknown team members with no track record
Compliant After You Launch
Getting the crypto license is just the start. You’ll need to file reports, submit audits, and update your user monitoring systems regularly.
In some countries, even a small system change must be reported. If you don’t, you risk suspension.
Set up an internal mock audit every quarter. This catches problems early and keeps your license safe.
Final Thoughts
A crypto exchange license in 2025 isn’t easy, but it’s not impossible. Most people mess up by rushing or choosing the wrong country. Take time to plan. Get advice from people who’ve done it. And always think two steps ahead. That’s how real exchanges get licensed.
Get a Crypto Exchange License in 2025 was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.