6 Steps To Launch Crypto Exchange Business

Crypto Exchange Business

With the virtual currency that popular, businessmen are building their own crypto exchanges. Crypto may rise and fall. Yet, those who jump on the bandwagon to offer services for crypto enthusiasts can make a fortune. Just like the sellers of jeans and shovels during the gold rush. 

Today, it is not enough to have just the best cryptocurrency exchange software in terms of its technical aspect. There are a number of legislative obstacles on the way. What do businessmen need to launch an exchange? The Merkeleon cryptocurrency exchange software assisted by dedicated professionals in the sphere and a comprehensive guide to follow.  

Step 1: Choose Jurisdiction

When you plan to launch a crypto exchange, you need to establish its geography, as this will determine the legal aspect of your business. Every jurisdiction you intend to work with requires you to adhere to its rules. In some, however, regulations may be more advanced than in others, or less elaborate and thus more flexible. 

Nevertheless, it does make sense to operate in jurisdictions with a clear legislative base concerning the sphere of virtual currencies because when evolving states apply new rules, you will need to adjust your already existing company to these regulations, to say the least, or move it to a whole new jurisdiction.   

The best advice for you is to pick a crypto-friendly jurisdiction, with a full-featured set of norms for the crypto business, among which are:

  • Estonia, 
  • Czech Republic, 
  • Switzerland, 
  • The USA, 
  • Malta, 
  • Gibraltar, 
  • The UK, 
  • Singapore, 
  • Hong Kong, 
  • Offshore jurisdictions. 

Yet, lawyers do not recommend offshore, unless you are not willing to operate with fiat too.

Step 2: Get Licence

Right after Step 1 when you have chosen the right jurisdiction, proceed to getting a crypto licence. Many jurisdictions, on the other hand, allow running a cryptocurrency business without a special licence. This is not what we advocate. Operating a licensed cryptocurrency enterprise, you can quickly find a payment provider and work with banks, meaning easy access to fiat. 

To receive a licence, you must comply with the requirements of every jurisdiction you intend to work with. As minimal, you are required to: 

  • Monitor transactions,
  • Rent an office,
  • Hire a local board member,
  • Pay the state duty.

Standards, as you may guess, typically vary in different states. 

Step 3: Open Bank Account

Further, after securing a crypto licence, it is time to open a bank account. This will enable your business to access fiat currency. On top of that, some jurisdictions will demand that you register a bank account first before you can secure a licence. 

To open an account, banks usually want you:

  • To have a transparent business structure,
  • To support economic ties with the country of your bank,
  • To make a minimum deposit.

In jurisdictions loyal to cryptocurrencies banks are open to your registering there. Here are a few examples of such banks: Frick Bank (Liechtenstein), Fidor Bank (Germany), CIM Bank (Switzerland). 

Step 4: Find Software

Then, move on to selecting your software provider. A proper software solution is the backbone of your enterprise that will determine the operability of your platform, plus public interest to the cryptocurrency exchange. You can review discussion groups, check options on Reddit or Quora, or contact platform owners directly and interrogate them on software developers they collaborate with.

To know what components are obligatory check the article How Crypto Exchanges Work. In a nutshell, the key criteria for a reliable software provider are:

  • Security, 
  • Transparency, 
  • Operability,
  • Customization. 

Before purchasing software, thoroughly discuss all the details and try a demo. Additionally, many developers offer marketing and licensing assistance to simplify your launch. So, it may be a good practice to partner with a full-fledged provider and avail yourself of all their services.

Launch Crypto Exchange Business

Step 5: Connect Payment Processor

To accept payments from individuals, you need to link up a payment provider. For that, open a merchant account with a PSP provider. Once again, if you cooperate with an appropriate software company, they can help you integrate a payment processor as well. In this scenario, you can be sure that both your software and payment gateway will be 100% compatible and work well in line with each other. 

A sophisticated payment processor should be: 

  • Stable, 
  • Resilient, 
  • Easy to integrate,
  • With the lowest possible fees. 

By the way, the conditions for the latter depend on the country of incoming and outgoing payments, turnover, currency, and processing history. Hence, when establishing the geography of your crypto business, investigate all the aspects of your launch in advance.

Step 6: Add Liquidity

When almost all is said and done, do not forget about the liquidity of your exchange. Users will not remain on the cryptocurrency exchange platform whose liquidity is low. For them it means they cannot easily swap currencies, without losing the value or triggering exchange rates. To raise liquidity, you should connect your service to other sites via APIs.

You can look for a liquidity provider on your own online, taking into consideration their previous cases, feedback, and quality. Alternatively, you can equip your site with the liquidity provider of your software company. Just like with the payment processor, in this case you instate a complete compatibility with the software and eliminate extra fuss about searching for a liquidity provider. 


In essence, these are the pillar stages for starting your own crypto exchange. What is more they all are interconnected and should be regarded as an inseparable whole. That said, plan every stage, recognizing its specifics beforehand.

All in all, each step can be covered by a quality software company that, above the code, can offer legal assistance, add payment gateways, and provide liquidity. It only remains to promote your project and improve it according to the needs of your clients. Speaking of which, many developers can help with it too.

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