Setting Up Cryptocurrency Exchange In India

DESCRIPTION:

1. OBTAIN PROPER LEGAL COUNSEL FOR LICENSE REQUIREMENTS

Proper licensing in the jurisdiction in which the company plans to operate and legal counsel to understand the regulatory demand of the Cryptocurrency exchange. For example, if the place of set up is India, the regulatory bodies included are RBI (Reserve Bank of India) when dealing with Cryptocurrencies under the category of “virtual currencies” and SEBI (Securities and Exchange Board of India)  as proposed under the Regulatory sandbox. The Crypto Token and Crypto Asset (Banning, Control and Regulation) Bill, 2018 is also under consideration of the Indian Government.

2. GETTING FUNDING FOR THE VENTURE

To launch a cryptocurrency exchange, it is important to calculate the approximate costs involved which include a bare minimum of $ 135, 000. Ensuring that the venture has access to enough capital to allow a proper runway. Planning includes the cost of technology, hosting, some initial legal counsel, government registration and initial advertising.

3. FINDING A TECHNOLOGY PROVIDER

For developing exchanges, a technology that serves many fold purposes including auditing and source code.

4. CONNECTING THE EXCHANGE FOR OTHER FOR ADDED LIQUIDITY

Liquidity is the cornerstone of any successful exchange. New ventures are always addressed with a little skepticism. In order to overcome this, connecting your exchange into existing exchanges is the best method in order to enhance its liquidity.

5. PARTNERING WITH A PAYMENT PROCESSOR

The lowest transaction rate in order to be competitive is preferred when it comes to competing with other exchanges. To comply with PCI DSS, is the most trusted payment processor to ensure cybersecurity.

6. IMPLEMENTING THE BEST SECURITY PRACTICES

With the increasing data breaches, Cryptocurrency becomes the latest target of cybercrime and hacking. It is quintessential to ensure that the cryptocurrency exchange set up does not become a target of security breach putting all the virtual currency in danger.

7. MARKETING AND PR CAMPAIGNING

Once the exchange has launched, connecting with crypto news outlets is essential, along with the cost of marketing activities.

8. SETTING UP PROPER CUSTOMER SUPPORT

Customer support should be given equal importance, and customers should be responded in a timely manner.

9. MAINTAINING LEGAL TEAM FOR ONGOING COMPLIANCES

Cryptocurrency laws are still evolving and rapidly growing globally, which makes it even more essential to maintain a Legal team in order to comply with all the existing and proposed laws and regulations not only in domicile jurisdiction but also in all the foreign jurisdiction where the exchange members or traders will also reside.

Lack of Specific Regulation and the grey area regarding the taxation of Cryptocurrency leaves some questions unanswered. More of less, these are the definite steps to be taken while setting up a Cryptocurrency Exchange. The Regulations for licensing may vary from one jurisdiction to another.