The cryptocurrency industry has grown rapidly over the past decade, attracting businesses eager to offer crypto-related services such as trading platforms, digital wallets, custody solutions, and more. However, as the market matures, regulators around the world are establishing stricter rules to ensure transparency, security, and financial integrity. For crypto asset companies, obtaining a license is no longer optional — it’s a critical part of building a trusted and sustainable business.

In this article, we’ll walk you through the process of obtaining a crypto license, highlight why it matters, and explore popular licensing options in Canada, the European Union (Malta), and Switzerland.

Why Your Crypto Asset Company Needs a License

Before diving into specific jurisdictions, it's important to understand the benefits of becoming a licensed crypto business:

Regulatory Compliance: A license ensures your company complies with anti-money laundering (AML), counter-terrorism financing (CTF), and consumer protection laws.
Banking Access: Licensed entities are more likely to gain and retain relationships with banks and payment providers.
Trust and Credibility: Clients, investors, and partners are more confident working with regulated companies.
Cross-Border Opportunities: Certain licenses allow you to operate in multiple jurisdictions through passporting or recognition.
Future-Proofing: As regulations evolve, having a license puts you ahead in adapting to new requirements like MiCA in the EU.

Now, let’s look at how to obtain a license and where.

Step-by-Step: How to Get a Crypto License

Regardless of the country, the process generally involves the following stages:

1. Define Your Business Model

Different jurisdictions and license types apply to different crypto services. Ask yourself:

Will you be offering exchange or trading services?
Are you issuing or managing digital wallets?
Will you provide custody or asset management?
Are you launching a token or coin?

The clearer your business model, the easier it is to select the right license type.

2. Choose the Right Jurisdiction

Jurisdiction impacts regulatory requirements, application complexity, costs, and market access. We’ll review three well-known options below.

3. Prepare Your Documentation

Licensing requires robust documentation, including:

Business plan
AML/KYC policies
Risk assessment procedures
IT and cybersecurity frameworks
Organizational structure and resumes of key persons
Financial forecasts

4. Company Formation (If Required)

Some jurisdictions require you to incorporate a local legal entity. This may also include appointing resident directors or maintaining an office locally.

5. Submit Application & Undergo Review

Regulators will review your application, request clarifications, and may conduct interviews or background checks on your management team.

6. Receive Approval and Stay Compliant

Once approved, your business can operate legally under the license. However, you must comply with ongoing obligations such as audits, reporting, staff training, and updates to your compliance program.

Popular Crypto Licensing Jurisdictions

Now let’s look at three strategic licensing jurisdictions that crypto companies often choose: Canada, Malta, and Switzerland.

1. MSB Registration in Canada

Canada offers a straightforward path for crypto companies through its Money Services Business (MSB) regime, regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Who Needs MSB Registration?

Crypto businesses must register as an MSB if they:

Exchange crypto for fiat (or vice versa)
Facilitate crypto-to-crypto transactions
Operate wallets or custody solutions
Transfer digital assets on behalf of users

Key Requirements

Company registration (can be foreign or domestic)
Appoint a compliance officer
Establish an AML/CTF compliance program
Conduct KYC verification and report suspicious transactions
Maintain accurate transaction records

Timeline & Cost

Registration can be completed in 1–2 months
There are no government fees, but professional advisory costs apply
Ongoing compliance obligations include reporting and audits

Why Choose Canada?

Canada’s MSB framework is internationally recognized and offers a quick and cost-effective entry into regulated crypto services. It's ideal for startups or companies focused on the North American market.

2. CASP License in Malta (MiCA-Compliant)

As part of the European Union, Malta is aligning its regulatory regime with the new Markets in Crypto-Assets Regulation (MiCA). Crypto businesses can apply for a Crypto Asset Service Provider (CASP) license, supervised by the Malta Financial Services Authority (MFSA).

Who Should Apply?

Businesses involved in the following must obtain a CASP license:

Crypto exchanges
Custodial wallet providers
Crypto payment processors
Crypto advisory and brokerage services
Issuers of crypto assets or stablecoins

Key Requirements

Local Maltese entity and office
Directors and key personnel must pass “fit and proper” checks
Minimum capital requirements (ranging from €50,000 to €150,000)
AML/KYC framework aligned with EU standards
Robust IT and cybersecurity policies
External audit and reporting obligations

Timeline & Cost

Pre-application process: 4–6 weeks
Full licensing: 4–6 months
Costs: Application fees + advisory/legal support (~€25,000–€50,000)

Benefits of Malta under MiCA

EU passporting: One license gives access to all EU member states
Legal certainty: MiCA offers harmonized rules across the EU
Investor confidence: MiCA compliance enhances credibility with banks and institutions

Malta is best suited for businesses planning to scale across Europe and aiming for long-term regulatory security.

3. SRO Membership in Switzerland

Switzerland has long been considered a hub for blockchain and crypto innovation. Rather than issuing traditional licenses for crypto startups, the country uses a Self-Regulatory Organization (SRO) model under FINMA oversight.

What Is an SRO?

An SRO is a private organization that enforces compliance with the Swiss Anti-Money Laundering Act (AMLA). Joining an SRO is required for crypto companies acting as financial intermediaries.

Who Should Join an SRO membership?

Crypto exchanges or brokers
Custodial wallet providers
Payment processors or token issuers
OTC crypto desks

Key Requirements

Swiss legal entity (AG or GmbH)
Local director or representative
AML-compliant business structure
KYC/CTF framework
Membership in an SRO (e.g., VQF, ARIF, PolyReg)

Timeline & Cost

Company formation: ~3–4 weeks
SRO approval: 4–5 months
Total costs: CHF 15,000–30,000 (varies by scope)

Why Switzerland?

Switzerland offers regulatory clarity, access to strong financial infrastructure, and global credibility. It’s ideal for companies that want AML compliance without a full financial services license.

Conclusion: Building a Compliant Crypto Business

Licensing is the foundation of a serious crypto business. Whether you’re building a global exchange, offering wallet services, or issuing a token, getting the right license is essential for operating legally, scaling responsibly, and attracting clients and partners.

Choosing the right jurisdiction — be it Canada for fast registration, Malta for EU expansion, or Switzerland for strong AML compliance — depends on your business goals, budget, and timeline.

Need help navigating the process? Work with an experienced regulatory advisor to ensure your license application is efficient, compliant, and future-ready.