Cryptocurrency Exchange Formation

Cryptocurrency Exchange Formation

Over the past several years, the cryptocurrency sector has experienced hyper-growth. During this period of growth cryptocurrency exchanges have swelled in size and many new entrants into this space have emerged. There has been some consolidation among cryptocurrency exchanges as a result of the uncertainty in the future regulatory environment of cryptocurrencies.

Launching or managing an existing cryptocurrency exchange is a complex endeavor and one must seek experienced counsel to help with the following:

  • Analyzing the best jurisdiction to form your exchange’s entity.
  • Structuring your exchange’s entity in the most tax efficient manner possible, to minimize taxation.
  • Determining whether or not your exchange should register or if there is an exemption from registration.
  • Broker dealer and Alternative Trading System (ATS) registration.
  • Helping your broker dealer firm with its risk assessment, supervisory and reporting requirements.
  • Preparation of FINRA New Member Application (Form NMA), written supervisory procedures, a detailed business plan, AML & KYC compliance policies and procedures and operational and financial disclosures.
  • Communications with the SEC and preparing you for and attending with you during your pre-membership interview with FINRA.
  • State registration and filings in all 50 states.
  • Obtaining registration or licensing of exchange in offshore or international jurisdictions (e.g., Belize, Cayman Islands, Cook Islands, Hong Kong, Malaysia, Mauritius, Mexico and many other locales). 

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