Which country is the easiest to get a crypto license? (part1)

How to Get a Crypto Exchange License in Lithuania

Lithuania is one of the top countries in the freest economy and ranks 11th in the easiest locations to launch a business, making it a favourable place for any crypto company looking to become fully regulated.
There are two types of permits under this jurisdiction: crypto exchange and virtual currency wallet provider. Regardless of the business type, the company must provide a capital share of at least €125,000.
Crypto servers under this license can carry out the following activities:

• Crypto-crypto and crypto-fiat-crypto exchanges.
• Wallet custodial services.
• Process virtual currency transfer service through third-party providers.
• Operate crypto investments, such as staking.
• Issue ICOs only for utility tokens.

Labuan Crypto Exchange License Requirements

Labuan is a federal territory that belongs to Malaysia, and it has surfaced in the crypto exchange licensing landscape thanks to its favourable tax system and regulations.
Businesses in Labuan benefit from the low corporate tax rate of 3%, besides the usual VAT in Malaysia of 24%. In the last few years, Labuan introduced major reforms that allow crypto companies to benefit from business insurance, a virtual banking system and digital intermediaries.
Applicants must provide a share capital of $150,000 minimum, with an application fee of $1,500. Additionally, companies are not required to have a local partner and can operate completely as a foreign entity.

Getting a Dubai Crypto Exchange License

The United Arab Emirates is one of the most popular destinations for virtual asset service providers and blockchain companies, benefiting from the lenient regulations towards these companies and Dubai’s advanced role in promoting Web 3.0 utilities.
VARA – Virtual Asset Regulation Authority, is the regulatory body of virtual assets and activities in Dubai, which governs the crypto business landscape and trading activities in the Emirate.
Dubai offers one of the most attractive tax rates, with a 5% VAT for the use of cryptocurrencies to purchase operational supplies. The corporate tax (9%) is only applied if your annual returns exceed AED 375,000 ($102,000). Otherwise, it is not applicable.

Getting a Malta Crypto Exchange License

Malta is one of the first European countries to regulate cryptocurrency services and operations, offering a fully regulated license. There are four categories of Malta crypto licenses: 

• Cryptocurrency advisory services.
• Provide crypto wallets, custodial services, and P2P transactions.
• Over-the-counter trading and crypto market makers.
• Full crypto exchanging and trading license with investor protection.

Transactions using cryptocurrencies are not subject to taxes in Malta. However, purchasing cryptos to supply the exchange/trading platform is subject to 18% VAT and the corporate income tax amounts to 35%.
The application fee and minimum required capital depend on the type of the permit, starting from €50,000 capital and €6,000 application fee for the first tier.

Becoming a Licensed Crypto Exchange in Malaysia

Malaysia is one of the most technologically advanced countries in Asia, offering a reliable crypto license to carry out custodial, on-ramp and off-ramp exchanges to users around the world.
The country offers a clear-cut tax rule for businesses, entailing a 3% corporate tax, no sales tax and no dividends tax. Non-local companies can operate as 100% foreign entities without having a local partner or representative.