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How to get a cryptocurrency exchange license in Iran?
How to get a cryptocurrency exchange license in Iran? If you are planning to launch a cryptocurrency exchange, it is obvious that obtaining a license seems to be one of the first steps. Now the point is, how can you currently apply for a cryptocurrency exchange license in Iran? What documents are required for this and what institutions are involved? In this article from Farhad Moghadam Salimi’s Crypto School, we intend to provide you with a complete guide on how to obtain a cryptocurrency exchange license.
What are the entities that issue licenses for digital currency exchanges?
The first thing you need to know when answering the question of how to get a cryptocurrency exchange license is that, unfortunately, the process of obtaining a license for a cryptocurrency exchange is currently complicated and unclear. Some of the large exchanges operating in Iran have official licenses. This is while many of them operate without a license.
Of course, not having a license does not mean that these exchanges are unreliable, but obtaining a license requires going through complicated administrative procedures that are full of ambiguities. One of the ambiguous points is the institutions that issue licenses to establish cryptocurrency exchanges. Currently, several different institutions claim to provide licenses, including the Central Bank, the Presidential Vice President for Science, the FATA Police, the Stock Exchange Organization, and the Ministry of Security.
What are the conditions and rules for setting up a digital currency exchange in Iran?
In general, to set up a cryptocurrency exchange, you need to keep in mind a set of general rules and requirements. By observing these, you can proceed to establish a cryptocurrency exchange. Some of these items include:
– Commitment to combating money laundering
– Comply with all security considerations
– Recording information related to transactions, details of beneficiaries and origin of transactions for submission to the Central Bank
– Compliance with laws against currency and goods smuggling
– Providing sealed documents related to company registration
– The applicant must not have foreign citizenship and must be a resident of Iran.
– Submitting the articles of association to the Central Bank after registering the company
Steps to obtain a cryptocurrency exchange license in Iran
Since there are no clear guidelines on how to obtain a cryptocurrency exchange license and the steps to obtain it from the relevant institutions, it is not possible to provide specific guidance for this task. However, you can still start your activity without a license.
What documents are required to establish and register a cryptocurrency exchange?
Depending on whether the exchange is a company or an online platform, the documents required to obtain a license are different. In the case of online exchanges, identity verification is of the utmost importance so that in the event of a violation, the perpetrators can be tracked down. For exchange companies, it is also necessary to provide certain documents, including the following:
– A true copy of the company’s registration documents
– Original company registration notice in the official newspaper
– Articles of Association sealed by the Central Bank
– Minutes of the founding board meeting, sealed with the seal of the Central Bank
– Certificate of Exchange Operations Skills. You must know how cryptocurrency exchanges work and have the management skills necessary to run this business.
– Providing a guarantee for the proper fulfillment of obligations in the amount of 50% of the registered capital
– Certificate of no criminal record
How to register a cryptocurrency exchange company
To register a cryptocurrency exchange company, you need to follow the same steps as for registering a company. First, start by preparing the documents for the cryptocurrency exchange license mentioned above.
How to obtain an exchange license from the Central Bank
It was stated that the Central Bank, despite issuing various instructions regarding the activities of various centralized and decentralized digital currency exchanges , still does not issue licenses for the activities of these exchanges.
How much does it cost to establish a cryptocurrency exchange in Iran?
Typically, an amount equal to the cost of establishing the exchange is deposited as collateral with the Central Bank. The applicant will then be charged the fee for obtaining a cryptocurrency exchange license.
These are the costs associated with licensing. In addition, to start an online cryptocurrency exchange, you need to consider costs such as setting up and managing online platforms, costs associated with staffing, and advertising and marketing costs.
Challenges of Obtaining a Cryptocurrency Exchange License in Iran
The most important challenge in obtaining a cryptocurrency exchange license is the lack of transparency in the legal process. The relevant institutions have not yet taken a clear position on this issue, as a result of which most activities in this area are carried out without issuing a license, which may be problematic.
Important points after obtaining an exchange license
Operating a cryptocurrency exchange approved by the central bank is much easier in terms of gaining the trust of the audience. You can take advantage of this and surpass your competitors by increasing the quality of your services as a currency buying and selling platform.
Is physical exchange better or online?
Physical and online exchanges each have their advantages and disadvantages. Physical exchanges have more credibility in the eyes of users, but as mentioned, it is not possible to obtain a license for them. This is while online exchanges without a license have no problem operating. The cost of setting up an online exchange is also much lower than a physical exchange.
Also, online exchanges do not have geographical restrictions, they are available 24 hours a day so that people can follow transactions at any time of the day, etc. Of course, online exchanges also have their disadvantages. For example, these exchanges are very vulnerable to cyber attacks. They are also dependent on the Internet, which in the event of an outage, practically makes them unavailable.
final word
There are few people who are not familiar with digital currencies or have at least heard of one or two of them. As the crypto market continues to develop, it is hoped that the laws related to activity in this field in Iran will also become clearer so that the high capacity of this platform can be better utilized.
Frequently asked questions
1. How to get a cryptocurrency exchange license? Is it possible to get a cryptocurrency exchange license in Iran?
No, it is currently not possible to obtain a cryptocurrency exchange license in Iran. As a result, only a few exchanges have ever managed to obtain this license in Iran. Of course, this does not mean that Iranian exchanges without a license are not trustworthy.
2. What are the documents required to obtain a cryptocurrency exchange license?
Due to the lack of licensing for cryptocurrency exchanges, there is no specific list of documents required to obtain a license.
