Despite the fact that the cryptocurrency industry is gradually becoming an integral part of the economies of most civilized countries, there are still many large market participants offering their services everywhere without the proper licenses.
On the one hand, the very nature itself of Bitcoin and other digital assets suggests that there should be no talk of any activity involving official documents. Bitcoin, for example, is independent from any public and private structures and allows its holders to make transactions completely anonymously, thereby completely avoiding the attention of the relevant supervisory authorities. The idea behind cryptocurrencies, among other things, is to confront the traditional financial system in which the rich are constantly getting richer while everyone else is getting poorer.
On the other hand, people in developed countries live in a rather flexible society, where it is not necessary to engage in underground activities in order to fully interact with cryptocurrencies, either as a business owner or as an ordinary citizen who prefers to pay for goods and services with digital assets.
Until a certain point, it was acceptable for most cryptocurrency exchanges and platforms to remain in the shadows and not pay attention to the current laws in certain countries. However, the massive adoption of cryptocurrencies and attempts to regulate the industry by most governments has led to the fact that the only option for successful business development, and in particular organizing the exchange of digital currencies and their storage, is obtaining licenses to operate in all jurisdictions where the relevant services are provided. This was also recently announced by the founder of one of the largest exchanges to date, which has actively begun to bring the exchange into the legal sector. The global development of the cryptoindustry is impossible without a legal component, and the largest companies understand this. For example, on the territory of the Russian Federation, measures with illegal exchange have already been tightened, where illegal exchange offices have recently been closed and several criminal cases have been initiated.
It would be inappropriate to name specific exchanges, but drawing attention to some of the popular cryptocurrency trading platforms that have been offering their services to traders from all over the world for many years and do not have the appropriate licenses for this, certain conclusions can be drawn.
Of course, this does not mean that these platforms will disappear from the market in the foreseeable future, but at the same time it clearly demonstrates that the strategies of companies for doing business in jurisdictions where the appropriate licenses have not been obtained are no longer relevant for civilized countries.
Risks of participating in illegal cryptocurrency exchanges
Considering the aforementioned, regardless of what tools may be offered by different platforms, users of these services may at some point suddenly find out that in fact the whole process of trading and buying digital funds was not considered to be legal activity.
There is an enormous variety of cryptocurrency exchanges and exchanges. Larger exchanges focused on traders are trying to offer options both for buying cryptocurrencies with bank cards as well as withdrawing digital assets, including through P2P instruments. This involves the exchange of funds between two individuals on pre-designated conditions while the whole process is being controlled by the exchange.
We can take any cryptocurrency exchange as an example, in this case specifics are not important. Let’s say a user decides to exchange cryptocurrency for fiat currency through the instrument provided by the exchange and withdraw it to their bank card. The operation goes through successfully, and as a result a certain amount of funds is credited to the user’s account. Then, at some point, this account is blocked by the bank, and the aforementioned user is asked to provide the relevant documents confirming the legality of the transaction.
Granted, they can provide all the screenshots and other necessary information, but the news may be suddenly broken to them that the cryptocurrency exchange does not have the appropriate licenses to conduct such activities. With a high probability, the result will be an irrecoverable loss of funds, and perhaps even more serious consequences if considerably large amounts are concerned.
Even more unpleasant situations arise in the ubiquitous Bestchange exchanger aggregator, which presents a huge number of unlicensed organizations or simply anonymous persons providing an exchange service without any regulation.
With a high degree of probability, someone trusting such services will sooner or later come across those wishing to generate funds through fraud and robbery. You don’t need to be a genius to figure out that small overpayments in licensed exchange services will most likely pay off, in the long run, compared to all the rest. That is, one single unfortunate case of Murphy’s law striking could end up falling on your most important transaction.
Believe me, this is not at all the market where you need to sacrifice reliability and quality in favor of thriftiness, you need to protect your nerves and capital.
In this regard, the most experienced enterprises conscious of their own development prospects already began preparing to obtain licenses quite a long time ago. Among them is Simba, which already has official confirmation for a custodian license in the UAE and is currently awaiting licensing in Liechtenstein.
Where can cryptocurrencies be traded and bought legally?
First of all, it is worth paying attention to the availability of licenses for the carried out activities. If it is present at the exchange service or cryptocurrency exchange, then it is an excellent indicator that the company is interested in security for its users. It is also necessary to make sure that the license is issued in a country where this activity is strictly controlled and is under the attention of the state. Thus, you can select high-quality place for buying or selling your cryptocurrency.
For example, TRES OTC DMCC received the first license in the UAE, Dubai to conduct cryptocurrency transactions and opened its doors in one of the most secure buildings in Dubai. With the help of the company, you can both buy and sell your cryptocurrency in an absolutely safe and legal way from 100,000 EUR. Accordingly, you can use the services of this company by registering on the tres.swiss website and leaving a corresponding request for trading.
If you are interested in investing in Bitcoin, then you can pay attention to the already mentioned SIMBA Storage company. Thanks to a partner of the company who has the right to carry out activities for the exchange of cryptocurrencies (according to the laws of London), the company’s clients can legally purchase Bitcoin through the simba.storage website at the form of a SIMBA token, an asset which backed by Bitcoin in a ratio of 1 Satoshi — 1 SIMBA.
The process of buying Bitcoins on the Simba.Storage website is as simple as can be. It is done with the following actions:
- Registration on the simba.storage website;
- Going through the verification process;
- Entering the desired purchase amount of BTC in the “Buy” section, with the choice of the option to purchase with a bank card;
- Next, the payment for the BTC purchase goes through the Simba partner, and SIMBA tokens are credited to the user’s account. At this stage, the Bitcoins are automatically put into our storage device. Bitcoin cold storage lets you count on the ultimate level of protection of funds, at the same time SIMBA tokens can be used for any type of payment;
- A user can withdraw their Bitcoins from the storage at any time.
The obvious advantage of this option is that Simba.Storage customers get the opportunity to legally and quickly purchase Bitcoins and store them securely without the need to purchase and use hardware wallets, as well as without the large number of transactions normally required when interacting with exchanges.
Against the background of such initiatives related to the arrival of cryptocurrency organizations in the legal field, it is becoming easier for companies to attract institutional investors, large funds, and other organizations interested in the industry.
Gradually, the legalization of activities related to digital assets will affect the very large growth of the market and bring the crypto industry to a new level, which will also have a positive effect on the price of Bitcoin. Despite the fact that there are few companies currently operating within the framework of the laws and complying with the standards of regulatory bodies, the future belongs to them. As the cryptocurrency industry develops, such organizations will organically crowd out all competitors.