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Over 15+ years in Finance, Regulation Law, and Building Crypto Eco-systems
" Whitehat has helped us launch and grow several online businesses with various crypto and e-commerce licenses in different countries. We couldn't have done it without them. We appreciate the hard work you put in!"
Licenses: Europe • Asia
Business Formation • Accounting
Ecosystem: E-Wallet • Currency Exchange • E-Learning Platform • eCommerce • NFT Marketplace • In-Store Crypto Payments •
It is not uncommon to have questions. Let's address a few before we talk.
I'm a beginner — how do I even start?
We've seen some of the biggest failures in crypto. We've also seen crypto projects fulfill their promise. So, if you're just getting started, here's what you should know.
Understand the Crypto Landscape
+ With little government supervision or legal recourse, crypto creators and investors take on a significant risk of losses in any project.
+ Talk through your idea (with someone who's done it before)
+ Analyze opportunities and Risks
+ Be prepared to pivot
Apply a case-by-case approach
+ Get familiar with multiple legislations
+ Have obtained multiple national authorizations or registrations
+ Comply with all different national laws
Blueprint Your Core Business
+ Establish a Company
+ Secure Trademarks
+ Build a Website
+ Operational and Territory Licenses
+ Build your teams: Support, KYC specialists, AML/CFT MRLO, Marketing, Legal counsel, Compliance Support
Pro-Insight: Take a moment to set clear workings hours. This way, you will have the people and the resources to cover a schedule. It is paramount to hire the right department managers for each sphere of expertise. And know the costs associated with keeping your Core Business operational. Many startups fail before their Core Business Assets are operational.
What is the difference between a VC and an angel investor?
While both venture capitalists and angel investors provide money to startups, venture capitalists are professional investors who invest in a broad portfolio of new companies and use their networks to help a startup.
In contrast, angel investors tend to be wealthy individuals who invest in new companies as a hobby or a side-project. To find the right startup companies and small businesses with growth potential in the long term, they both need expert guidance.
What is the #1 way to screw up as a Crypto VC?
Excitement. Don't fall for too good to be true projects. A person's emotions get overwhelming at times when they feel excited, which can affect their decision-making abilities. Behavior that is impulsive does not serve your interests.
A close second is a lack of Customer Due Diligence (CDD). There is no such thing as a risk-free investment. However, as the world of virtual assets is synonymous with anonymity, it is challenging to know where to look and even more challenging to understand what it means.
What is a Whitehat Risk Assessment?
A Whitehat Risk Assessment combines an Asset Profile with a Deep Assessment with insights on high-risk red flags, gray areas of opportunities, and legal considerations.
+ Company legal name
+ Owner's name
+ License number if applicable
+ Address - virtual or factual
+ It’s status: whether it is existing or in liquidation or insolvency
+ The country where the company is incorporated and the owner's origin (keeping in mind that some countries are deemed risky or sanctioned).
+ Licenses. Remember that a license in one country does not imply a license in every country.
+ Whether the business is currently operating(look at the financial statements that are available in public trade registers).
+ Red flags related to government debt? (There are a lot of credit rating companies online where you can obtain such information for free.)
+ Name changes — While it is true that changing a company's name does not mean fraud (as in the case of to brand confusion, if it is too long, or the business has simply outgrown it), a name change may be indicative of possible fraud.
+ Employees (the trade registers can provide this information)
+ Marketing reputation (court cases, involvement with scams, etc.)
+ Signed contract (make sure to check if it is signed by the company’s owner or an authorized representative)
+ Relevant documents for payment/s.
+ The Registration Date.
It's truly impossible to find even a single virtual asset/payment service provider who fulfills all countries’ crypto requirements within the industry. As a matter of fact, the EU parliament claims that the different approaches make the provision of crypto-border services extremely difficult.
During the evaluation process, all collected information must be taken into account. After that, you will be able to make an informed business decision and shape your future.
Let me help you today!
What license(s) do I need for my Crypto Project?
The licenses that you need for your crypto project depends on the specific needs of your business, the fulfillment of the idea, and your goals.
Some licenses in the Virtual Asset Business include:
+ Payment processing
+ E-wallet services
+ Cryptocurrency Exchange
+ Forex/Brokerage & Securities
+ Financial consulting of third parties
+ Depository Agent's activities for third parties (other Banks, PSPs, etc)
+ Cryptocurrency ICO launches (If done through a third party issuer)
+ Merchant Account services
+ Hosting of trading platforms (FX, cryptocurrency, etc)
+ Offshore FX
+ Crypto Trading Software Development
+ ICO Launch
+ Wealth Management
+ Asset Management
* While it it quite rare, It's possible for you not to not need license for your crypto project. For example, if you're launching a local token in a territory that does not require a license.
We have already started and need help filling in the blanks for our virtual asset business.
The core idea of a start-up business is very important. However, the way an idea looks on paper might be quite different from its execution. Some ideas can have a logical mismatch, can be created at the wrong place or time, can be misaligned with legislation and compliance requirements, or may not have the right resources.
Get a greater sense of your Legal Blindspots, navigate challenges, expand your business territories with confidence, launch new assets into your Crypto-blockchain Ecosystem.