You might be interested in a crypto company for various reasons: whether it is a strategic partnership that promises business growth through mutually created products or services or your future client, or maybe you are seeking a reliable crypto service provider to satisfy the financial needs of your company. For whatever reason, take the time to do your due diligence and research the background of the crypto company before signing any agreement which may have long-term implications upon your business.
Many countries have legalized and begun to regulate companies operating economic activities related to crypto, with the purpose of preventing fraud and maintaining financial market stability. Thus, only fully licensed crypto businesses can operate in certain countries, while all the others pose a serious risk to investors and partners or are simply not allowed as part of the industry.
Therefore, when you start searching for crypto partnerships or anything alike in the profitable but susceptible market of cryptocurrencies, place an order for a robust audit of your future financial partner or client well in advance before agreeing to cooperate. Based on our extensive professional experience in corporate law, we can ensure you that this step will save your business from unnecessary trouble and facilitate the creation of a reliable partnership.
What Is a Crypto Company Check
A crypto company check or crypto company audit is a legal process designed for verification of company information. Basically, you want to be certain that your potential financial partner actually is what it says it is and you can safely entrust certain parts of your business.
If you decide to purchase a crypto company check, our team here at RUE (Regulated United Europe) will verify and provide the following information about your future crypto partner or client:
| Aspect | Description |
| Basic Company Details | Check the incorporation document to ensure the crypto company is registered with national authorities. |
| Background of Owners and Directors | Investigate the administrative team and key decision-makers to ensure they are legitimate and not politically exposed or previously involved in scandals. |
| Registered Office Address | Verify that the crypto company has a registered address in the country of operation and that it matches the territories you operate in. |
| Licenses in Possession | Ensure the company has permission from national authorities to provide its products and services in the intended country of cooperation. |
| Company Financial Statements | Obtain audited records of financial activities to assess the performance and activities of the potential partner or client. |
| Status of Tax Debt | A reliable crypto company should manage tax obligations effectively and file returns on time. |
| Company History | Review the date of incorporation, past owners, directors, and beneficiaries to gauge the company’s stability and reason for establishment. |
| Company-Owned Domains | Evaluate previously and currently owned domains to gain insight into the reliability and scope of activities of the crypto company. |
| History of Litigation | Research any legal actions taken against or by the crypto company to assess its reputation and stability as a potential partner or client. |
To be able to deliver you this very important information, we are going to start by determining what regulations are applicable to your potential crypto partner and what licenses must be possessed in the territories where you are going to engage with this company. We will check all business registers relevant to verification and will contact the tax, supervisory, and other authorities whose rules your crypto potential partner or client needs to comply with. We strive to be as efficient as we can, but bear in mind that the timeline of the audit also depends on the competent institutions involved.
What Companies Should Be Audited
Although many countries have different legal frameworks, regulating cryptocurrency businesses is safe to say that most of them regulate the same crypto activities for anti-money laundering and counter-terrorist financing (AML/CFT) purposes.
If you are going to start a business relationship with a company that offers the following products and services, we strongly recommend checking at least their crypto license in order not to suffer financial, reputational, and other losses:
| Service |
| Exchange from cryptocurrencies to fiat money and vice versa |
| Exchange from cryptocurrency to another type of cryptocurrency |
| Crypto wallet services |
| Crypto ATM operations |
| Participation in Initial Coin Offerings (ICOs) |
| Facilitation of peer-to-peer exchange of crypto |
Some crypto-related businesses may be exempt from licensing or perhaps unregulated by national authorities, but that does not mean that you should not request an audit of the rest of the information on the company. If you are not sure against what crypto regulatory framework your potential crypto partner should be checked, our friendly team of experts will help you navigate the legal maze.
We can start auditing your potential crypto partner at any phase of your partner selection, though commonly checks are performed for shortlisted crypto companies. It is worth mentioning that shortlisting is more effective when you clearly know what your company’s needs and capabilities are.
Before considering a crypto company as a potential partner, identify the following aspects:
- The countries in which your business operates may define what licenses we have to look for.
- Your long-term vision and needs, if they correspond to what a crypto company has to offer.
- Your business values: you want to be sure that a new partner won’t pose some reputational or another kind of risk that might damage your values.
- Your budget that you’re ready to spend on the partnership and how that partnership will affect your business growth from the financial perspective.
- What kind of feedback you expect from a crypto company in areas of impact, results, and deliverables.
All this information shall help us deliver to you only the information relevant to your case and possibly interpret it correctly to allow you to make the right decision. Note that there are different angles depending on whether the crypto company you’re interested in is or may be your potential client. That is one of the reasons you should book a personalized consultation with us.
Why Order a Crypto Company Check?
A good crypto company audit will give you all the information you may need to make a decision on choosing a proper financial partner or taking a crypto client onboard. You should cooperate with a crypto company only that is fully and duly licensed by the relevant authorities.
This will enable you to mitigate risks associated with the following issues:
| Consideration |
| Legally required competence of the owners and senior management of the potential financial partner |
| Risk of exposure to bankruptcy of the partner |
| Availability of the crypto company license and the extent of crypto-related activities within the relevant territories |
| Reputational damage to your company because of illegal or improper activities a partner or client may be involved in |
| Crypto company adherence to proper standards of conduct |
On the whole, this is a pretty complex procedure of crypto company audit; therefore, professional examination should be carried out in order to prevent the emergence of unforeseen obstacles in the long run and enforce smooth operations of your own business.
How to check the license of a crypto exchange?
With the growing cryptocurrency market, much attention is drawn to the safety and reliability of cryptocurrency exchanges. One of the most important aspects that you should check before you begin your work with an exchange is whether it has a license. Licensing confirms that an exchange meets regulatory requirements and has the right to operate in a particular jurisdiction. In this article, we will look at how you can check whether a cryptocurrency exchange has a license and also if it is genuine.
| Step | Description |
| 1 | Determining jurisdiction: The license check of a cryptocurrency exchange usually requires the identification of a jurisdiction where the license was issued. This information is often found in the footer or “About Us” section of the exchange’s website. |
| 2 | Go to the website of the regulator: After identifying the jurisdiction, visit the official website of the relevant regulator. For example: |
| 3 | Check registration and license status: Most regulators’ websites have a search function to verify if the company is registered and its license status. Enter the cryptocurrency exchange’s name in the search box and analyze the results. Pay attention to:
|
| 4 | Research user reviews and ratings: Look for user reviews and ratings on independent platforms and forums like Reddit and Trustpilot to gain insights into the exchange’s reputation and any licensing-related complaints. |
| 5 | Reaching Exchange Support: If you have doubts about their license or any other questions, directly contact the exchange’s support team. Be specific regarding their regulatory status and ask for evidence to support their licensing obligations. |
Conclusion: Verification of a license is one of the great steps to help protect your investments and personal data. Bear in mind that cooperation with a reliable platform with a crypto exchange license reduces the risks of cryptocurrency trade manifold.
If you’re looking for new financial partners or are already preparing to sign an agreement with a crypto client, our highly experienced and insightful team of Regulated United Europe (RUE) is here to support you. We offer a robust audit, including a crypto license check, which will protect your business from undesired partnerships. We guarantee efficiency, confidentiality, and meticulous attention to every detail that impacts the success of your business. Contact us now to book a personalised consultation.
| Crypto company audit and crypto license check | from 750 EUR |
