Crypto Licensing: What It Means and Why It Matters for Traders and Users
When you hear crypto licensing, the legal process by which governments authorize companies to operate crypto services like exchanges, wallets, or staking platforms. Also known as VASP registration, it's what separates legal platforms from the wild west of crypto scams. If a crypto exchange isn't licensed where you live, it's not just risky—it might be illegal. That’s why Nigeria’s Central Bank went from banning crypto to requiring every exchange to get a license, why Thailand shut down foreign P2P platforms overnight, and why Bolivia’s sudden legalization led to $294 million in trading within six months.
Crypto licensing isn’t just about rules—it’s about trust. Licensed exchanges like ISX in Iceland or Orange Gateway (formerly ISX) have bank partnerships, clear reporting, and real oversight. They don’t vanish when the market drops. Compare that to Flybit or Apple Network (ANK), where no one knows who’s running things, withdrawals freeze, and tokens crash to zero. Licensing forces transparency. It means you can trace who owns the platform, what reserves back your assets, and who’s accountable when things go wrong. Without it, you’re gambling with your money, not investing.
And it’s not just exchanges. Licensing affects everything: staking validators, NFT marketplaces, even creator payment tools. If a project claims to be "regulated" but won’t show you its license number, it’s a red flag. Look at the JF airdrop or FLTY token—both promised big rewards but had no legal backing. Meanwhile, projects like EURC, issued by Circle, operate under strict licensing in the EU and US, making them safer for everyday use. The same goes for tokenized stocks like Ondo’s TSMC project—if it ever launches, it’ll need licenses from financial regulators, not just a whitepaper.
What you’ll find in these posts isn’t just news—it’s a map of where crypto is actually legal, where it’s banned, and who’s getting away with pretending to be compliant. From Tunisia’s total ban to Bangladesh’s underground Binance use, from Nigeria’s shift to regulation to Thailand’s crackdown on foreign platforms, the pattern is clear: if a country doesn’t license crypto, it doesn’t control it—it just pushes it underground. And when it does license it, adoption explodes. This collection shows you exactly how licensing shapes your access, your safety, and your returns. Know the rules before you invest.
- By Eva van den Bergh
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- 22 Nov 2025
Understanding Your Jurisdiction's Crypto Laws and Regulations in 2025
Crypto laws vary wildly by country. Know your jurisdiction's rules in 2025 to avoid fines, frozen funds, or worse. Learn what's legal, taxed, and regulated where you live.