How to create a cryptocurrency exchange website in the USA?
Digital currency trade or exchange is a platform where individuals can trade their digital currencies and convert them into another digital or national currency. An exchange(like binance) can be a website or an app installed on a mobile phone, or both.
By registering in a crypto exchange platform, you can buy Crypto in exchange for the national currency or another cryptocurrency or sell it for federal money (such as Dollars) or another digital currency.
For example, you can buy a bitcoin and pay it with ethereum or your national currency.
There is no need for human presence at the digital currency exchange office to register or make a transaction. It is only essential to apply through the software or mobile app because trading with Crypto requires not visiting.
To build a currency exchange site, you have to go through a series of steps. Let’s first examine these steps and then explain each of them.
- Know your competitor
- know the regulation of your state
- see where the business will operate
- choose or customize the features
- find a professional coding company
- get a payment gateway
step one: know your competitor
The best spot to start is researching the bitcoin exchanges that are currently operating.
To get to know the best cryptocurrency exchanges where large amounts of transactions are traded, you can read the article “Best Crypto Exchanges For 2021” by Forbes.
It is better to do lots of studies on how they work, marketing and the reason for their success in general so that in addition to information about the general process of work, more ideas come to your mind and pave the way for your growth.
The next thing I recommend you do is to give a lot of importance to your innovative ideas and not let them fade. Today, the cryptocurrency industry, which is also a fledgling industry, needs the same innovations more than anything else to continue to grow strongly.
Financial traditionalists often refer to bitcoin and other cryptocurrencies as a threat. As a result, they’ve always turned a blind eye to the Crypto industry, and bitcoin price is always considered a bubble in their eyes.
step two: know the regulation of your state
Approach and definition
Digital currencies have received a great deal of attention from the federal government and local governments in the United States. Numerous government committees, including the Securities and Exchange Commission, the Commodity and Trade Committee, and the US Federal Trade Commission, have sought legislation. Many bills and laws have been submitted to the legislature by these committees and even the US Congress. In addition, many measures have been taken at the state level. In Wyoming, for example, digital currencies are tax-exempt. Arizona is the first state in the United States to levy taxes in digital currencies. Georgia also provides a platform for individuals to pay their taxes in bitcoin.
On the other hand, states such as California and New Mexico have warned against investing in bitcoin. New York was one of the states that narrowed the field of digital currencies, which has led to many companies’ departure. There is no specific definition of digital currencies in the United States, and they are referred to as “virtual currencies,” “digital assets,” “digital tokens,” “encrypted assets,” or “crypto.”
Sales rules
The sale of digital currencies in the United States is subject to legal requirements only in two cases: (a) if it involves selling securities under federal law; Transfer money. Digital currencies are considered a commodity by some national committees of the United States. In the state of Chicago, bitcoin futures contracts are also offered by two large exchanges.
Securities Rules
The United States Securities and Exchange Commission has made it clear that the offering and sale of any token within an ICO is a “utility” asset and that securities laws apply to it. Therefore, passing the Howey Test is also necessary to determine the effectiveness and legality of the token and the ICO. In addition, if a token is recognized as a security, it will be required to obtain the necessary permits from the US Securities and Exchange Commission.
Money transfer and anti-money laundering laws
According to the definition of banking information confidentiality, FinCEN is responsible for legislation in banking businesses. In March 2013, the agency issued a guideline stating that digital currency exchanges and the head of the Digital Currency Fund, responsible for the purchase and supply of digital currencies, would include its monetary and banking laws. The United States does not allow financial transactions between its citizens and citizens of embargoed countries.
read this article: how to develop a crypto exchange website or platform?
Tax collection
In March 2014, the US Taxation Authority (IRS) announced that cryptocurrencies like Bitcoin are subject to tax laws and that their holders in various sectors must pay taxes. According to the published statement, the holders of these currencies are obliged to:
1) submit a detailed report of the purchase and sale of their currencies to this institution.
2) Pay tax on all amounts received in cash and profits.
3) Tax on goods or services received through digital currencies.
4) pay tax on the fair value of any digital currency extracted on the date of issue;
Use and testing
Arizona was the first state to introduce itself as a flagship and pioneer in the legislation and digital currencies, the digital economy, and the Chinese blockchain.
As a result, many facilities are provided for activists in this state, and many policies will become operational from the end of 2019.
Obligation to obtain a license
Managers of digital currencies are required to register and follow the rules set by the CFTC and the CTA. Also, in 2017, a law was passed by the Securities and Exchange Commission that required anti-fraud laws to be followed by digital currency companies and their executives.
Mining
In the United States, if you can buy and hold digital currency in your area, you can also extract it. However, if the possibility of purchasing and maintaining such currencies is limited, their extraction is also restricted and prohibited. Plattsburg and New York are among the states where the extraction of cryptocurrencies is not permitted.
Overseas laws
Some US lawmakers have proposed a bill that would require those entering the United States to report their digital assets.
step three: see where the business will operate
Now it’s time to decide on the scale of your business.
Do you want to operate within your city and state or expand it nationwide? What about global development? Have you thought about it?
It is one of the essential parts to consider. What is the reason? It is why your exchange must comply with their laws to operate in other states and countries.
Violation of country laws can cost you large sums of money. However, trading globally can significantly increase your profits.
Make sure you have a license to operate in that area before you start.
step four: choose or customize the features
Examine the features and options that other reputable exchanges have and write down the ones you think might appeal to customers and users. In addition, you can hire an analytics team to explore how to add and subtract features that double the appeal of your platform to users.
Consider your competitors’ strengths and try to keep them. And try to know their weaknesses and eliminate those in your business.
This is the way the greatest have gone.
step five: hire an expert coding team
Once you have reviewed your plans, it is time to implement it. To encode all these unique options and features and move them under blockchain requires a lot of expertise.
One of the most critical things you can do in this process is finding a reputable cryptocurrency exchange website development company in the USA and leave it to them safely.
Contracting is usually done to choose a demo or a basic design, then add your favorite and selected options to it. The expense of the development will rise as much as the time spent on the product. For example, to add a stop-limit feature, because 25% is added to the project time, the cost will be 125%.
step six: get a payment gateway
You need a bank or payment gateway to receive or pay for Fiat currencies. It allows customers to top up their wallets and purchase bitcoins or any other cryptocurrency. It is essential to know that many banks do not yet recognize bitcoin and may have difficulty finding it.
Since you intend to launch this platform for password transfer and the high volume of bitcoin, you should also pay attention to your open type of account. For example, if your account is personal, it will be closed within a week.
Another thing to keep in mind is to choose a bank that does the processing very quickly. Usually, the average time that banks offer to process this type of transaction is two days.
I hope this article is helpful to you.
Thanks for your attention.
