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Author Topic: Creating New Crypto Exchange - Legal Concerns  (Read 118 times)
hellodarren
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July 09, 2018, 10:38:29 PM
 #1

What legal things i absolutely needs to get done before starting a centralized crypto exchange ?

Can't i just start it without doing any legal stuffs and market it right away ?

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem  if i dont have a legal company ?

Also if i just say my company is based in "X" country and later register officially it will that be ok ?
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July 09, 2018, 11:04:17 PM
 #2

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem  if i dont have a legal company ?

That doesn't make sense - not having a legal company is shady...

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July 09, 2018, 11:26:14 PM
 #3

What legal things i absolutely needs to get done before starting a centralized crypto exchange ?
Pay Taxes, before and after creating a legally ran centralised crypto exchange with strict KYC policies.

Can't i just start it without doing any legal stuffs and market it right away ?
Why would anyone trust you? If you take all the funds and run away, customers would have no source to file a complaint against.

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem  if i dont have a legal company ?
What are you? Computer Security God that you're so confident it won't get hacked? Even if you don't do shady stuff there are nasty hackers who will empty your exchange the moment it goes live.

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July 09, 2018, 11:29:02 PM
 #4

What legal things i absolutely needs to get done before starting a centralized crypto exchange ?

Can't i just start it without doing any legal stuffs and market it right away ?

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem  if i dont have a legal company ?

Also if i just say my company is based in "X" country and later register officially it will that be ok ?

You can do what you do want but expect there would be no users would definitely use up your shady exchange.
Centralized crypto exchange but doesnt comply any legalities? thats contradicting.
Even on top tier exchange do have the chance on getting hacked, i was amazed about your exchange wont get hacked. lol


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July 20, 2018, 11:00:58 AM
 #5

you definitely need legal and registered company. if you are going crypto to crypto, the procedure is simpler as compared to crypto-fiat. you need deep pockets for every jurisdiction you are catering your crypto-fiat services.
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July 21, 2018, 03:40:49 AM
 #6

Centralized Crypto Exchanges have many, many overarching laws that they must abide by.  On top of that, in the US, there are many, many individual state laws.  You would be breaking the law as soon as you open.  Without an entity, you would be leaving yourself open to personal legal liability.

As for security ... do you have any idea how easy it is for someone to initiate a DOS attack on you?  Simple buffer overflow -> elevation of privilege.  And do you really want to be the next hacked exchange? 
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July 21, 2018, 05:01:59 AM
 #7

Creating New Exchange is very Hard. Because you Need High Security you need Partnership .you need Big Funds And Team Behind Your exchange you need A Meeting For A need Development For Your Project before you Start. You Need to Makes Idea to Make Trust Your Trader To Your New Crypto Exchange . Because many Of New Exchange Now Is Scam and Many Funds cant. Withdraw it 
  Thats the Reason Why Many Big traders Are Afraid To enter New Exchange.
I think you can Help this Idea You Want To Create New Crypto Exchange
 You need High Security
  Team Behind And See Your Face.
 More Development.
And Big Funds
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July 25, 2018, 07:36:30 PM
 #8

before you build it, ask yourself, can I get the liquidity?
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July 25, 2018, 07:55:20 PM
 #9

In our time, a huge number of people who own a crypto currency are not interested in the level of protection and legality of the exchange. This applies to many bounty hunters and novice traders. Only 5-10% of traders will be interested in these issues. As for decentralized exchanges, here the issue of legality of actions and dependence on the state does not seem to me at all.

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KingScorpio
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July 25, 2018, 08:08:17 PM
 #10

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem  if i dont have a legal company ?

That doesn't make sense - not having a legal company is shady...

lawyers are nowadays highly corrupt individuals, it would be better to find a way somehow arround.

in each reagions the local exchanges might manipulate and use the fear of the people to create themselves a strong basis. preventing the other ones from becoming legal

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July 25, 2018, 08:13:56 PM
 #11

In our time, a huge number of people who own a crypto currency are not interested in the level of protection and legality of the exchange. This applies to many bounty hunters and novice traders. Only 5-10% of traders will be interested in these issues. As for decentralized exchanges, here the issue of legality of actions and dependence on the state does not seem to me at all.

Is it irrelevant whether they are interested in the legality of the exchange when Uncle Sam comes knocking at your door. The legality of a exchange will protect you in the future against the government.     
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July 25, 2018, 08:18:34 PM
 #12

In our time, a huge number of people who own a crypto currency are not interested in the level of protection and legality of the exchange. This applies to many bounty hunters and novice traders. Only 5-10% of traders will be interested in these issues. As for decentralized exchanges, here the issue of legality of actions and dependence on the state does not seem to me at all.

Is it irrelevant whether they are interested in the legality of the exchange when Uncle Sam comes knocking at your door. The legality of a exchange will protect you in the future against the government.     

government will collapse with its banks, question will be there who will make the laws

gays? criminal thugs? warlords?

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July 25, 2018, 09:13:19 PM
 #13

government will collapse with its banks, question will be there who will make the laws

gays? criminal thugs? warlords?

You'll have to experience it too see how it plays out. There's no way for a land to exist without some form of a government, unless you want your area of influence to decrease, or you don't want to have land at all and live like nomads.

lawyers are nowadays highly corrupt individuals, it would be better to find a way somehow arround.

Don't generalize. There are honest lawyers, just like there are good policemen and so on.
Lawyers have to be witty to go around stupid laws that some idiots came up with in the first place and nobody has the balls to remove.

before you build it, ask yourself, can I get the liquidity?

Yup, it all starts and ends with money. You can always start with something small and local and slowly expand, but it will still cost a lot.

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July 25, 2018, 10:53:53 PM
 #14

What legal things i absolutely needs to get done before starting a centralized crypto exchange ?

This is a question you should ask a lawyer in your country or a regulatory agency in your country. But you must be legalized to provide a good service
 
Can't i just start it without doing any legal stuffs and market it right away ?

depending on your country, you can be arrested if you do

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem  if i dont have a legal company ?

depending on your country you may have problems, you can be arrested

Also if i just say my company is based in "X" country and later register officially it will that be ok?

No, it's not good. Just think for a few minutes: you in real life when you want to open a company in your country, do you use another country's address? Do you have something to hide?

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October 04, 2018, 06:32:18 AM
 #15

What legal things i absolutely needs to get done before starting a centralized crypto exchange ?

Can't i just start it without doing any legal stuffs and market it right away ?

Assuming my crypto exchange wont get hacked or will do any shady stuff is there any problem  if i dont have a legal company ?

Also if i just say my company is based in "X" country and later register officially it will that be ok ?



Just Check which country is legal to start the crypto exchange, then you start without fear.
But start the decentralized crypto exchange business.

Read this article: Decentralized Crypto Exchange Platform
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