Crypto.com Continues License-Securing Spree in 2022

What Are Regulatory Licenses?

In the contemporary world of cryptocurrencies, regulation on exchanges is ever-present and varies by country. Crypto.com has expanded their licensing to a number of other countries this year which is no small accomplishment. But before we get into the achievements of Crypto.com, it is helpful to know what to expect from the licensing process and why it has been implemented. For this example, we’ll cover the United States and how a license functions there.

In the US, if you’re a cryptocurrency exchange, you need a money service business license (MSB) in order to operate a business offering money transfer services, which is how a cryptocurrency exchange is defined legally in the US. This involves a number of steps, in no particular order they are; passing registration with the US treasury every two years, compliance with the anti-money laundering and countering the financing of terrorists policies, notifying the correct authorities when suspicious activity is identified, reporting all transactions over $10,000, and finally, maintaining records and technical information of all transactions including the making of reports of activity on the exchange. As you can see, that’s a lot of things to keep track of.

Cryptocurrency exchanges are sometimes criticized for playing into the hands of the government like this by early cypherpunks who are associated with the early adoption of Bitcoin at its launch and earlier cryptocurrency projects. However, the purpose of these regulations is laden with history and case law outside of the scope of this article, but there is legal reasoning for it all. To ensure fiduciary duties are followed, to ensure that clients are not subject to acts of fraud and financial crime, and to keep tabs on where money is spent and how assets are tied up which is valuable data for any governing body.

Crypto.com Obtains Licenses to Expand into Global Markets

This year, Crypto.com has secured a number of licenses to operate around the world. These licenses include Italy and their anti-money laundering regulating body, Canada and the Ontario securities commission, The UK and the Financial Conduct Authority, the Cayman Islands, registered with the Virtual Asset Service Provider Registration in South Korea, approval from Cyprus’ Securities and Exchange Commission, in-principle approval from the monetary authority of Singapore, and finally approval from the Dubai virtual assets regulatory authority.

Given the concerns of regulating bodies in the United States, it seems that Crypto.com is expanding its global footprint and plans to maintain its title of the “fastest growing crypto platform” in the world. There is significance in this expansion in a couple of ways. First, Crypto.com is expanding into large financial markets. Both Italy, Canada, and the UK are G7 member states, Italy is also the EU’s 3rd largest market by GDP, and South Korea is a historic hotspot for cryptocurrency investments. Secondly, the UK, Singapore, Cayman Islands, Cyprus, and Dubai are notorious financial hubs.

By expanding into these markets, Crypto.com is opening up access for more people to invest in cryptocurrency with legal protections. There are more than a couple of institutions and many more individuals that are hesitant to enter the cryptocurrency arena because of unclear regulations, lack of access to exchanges, or insufficient investor protection. With the platform’s expansion into legal territory, the availability of cryptocurrency in more countries with legal permission could lead to market opportunities and growth.

Getting Through the Crypto Winter

While a number of crypto assets have declined this year, Crypto.com seems to be trying to promote investment from other markets around the world. In the midst of a crypto winter such as this, we know from the past that it is during market downturns that spark innovations in the crypto industry. Whether these innovations are in new network infrastructure, new technology, or expanding current markets, these kinds of innovations are how the economic climate in the cryptocurrency world heats up. In spite of a bear market, Crypto.com is doing its part to stretch the field of cryptocurrency worldwide.

One part of the complex value system of cryptocurrencies is accessibility. Cryptocurrency is money for everybody, not just for central bankers. More hodlers and/or stakers means more value. Wherever there are unserviced cryptocurrency customers in the world, Crypto.com is eager to meet them and their crypto asset needs.