how to get approved and stay compliant

Operating a business in high-risk industries like cryptocurrency or online gambling is exciting—but it comes with significant legal challenges. Without the right licenses, companies can face heavy fines, frozen bank accounts, and even business closure. In fact, recent studies show that nearly 7 out of 10 high-risk businesses struggle to access banking or payment services in their first year due to regulatory barriers.

This guide is designed to help businesses navigate the complex world of crypto and gambling licenses. You’ll learn the different types of licenses available, the legal and compliance requirements, and practical steps to secure the right permissions for your operations. By reading this article, you’ll understand how proper licensing not only keeps you compliant but also opens doors to banking, payment solutions, and market credibility.

Crypto licenses explained: types, requirements, and best jurisdictions

For businesses operating in the cryptocurrency space, getting the crypto license is not just a formality—it’s a legal necessity that ensures compliance, builds trust, and unlocks access to banking and payment systems. Crypto licenses vary depending on the type of service you provide, the jurisdiction you operate in, and the regulatory framework you need to follow.

Types of crypto licenses

Licenses for crypto businesses generally fall under two main frameworks: VASP (Virtual Asset Service Provider), used internationally, and CASP (Crypto-Asset Service Provider), specific to the EU under MiCA regulations. Depending on the services offered, companies may need different authorizations:

• Crypto exchange authorization – for platforms that allow users to trade cryptocurrencies against fiat or other digital assets.
• Custody / wallet authorization – for providers that hold and manage digital assets on behalf of clients. In some jurisdictions, this may be treated as a single category, while custodianship for institutional clients often requires stricter safeguards.
• Broker authorization – for companies executing trades on behalf of clients or connecting them to exchanges.
• Crypto fund management license – for entities pooling investor funds to manage crypto-focused funds, such as hedge funds or venture capital structures.
• Payment institution / e-money license (with crypto focus) – for companies offering crypto payment solutions, issuing asset-backed tokens (such as stablecoins), or integrating crypto into broader financial services.
• DLT trading platform authorization – for providers operating digital asset trading platforms based on Distributed Ledger Technology.

Key requirements:

• strict anti-money laundering (AML) and know-your-customer (KYC) procedures
• secure data storage and cybersecurity measures
• financial audits and reporting obligations
• proof of capital adequacy or operational reliability in some jurisdictions

Best jurisdictions for crypto licensing:

• European Union – favorable regulations and EU market access
• Singapore – strong fintech infrastructure and clear licensing rules
• Switzerland – a crypto-friendly environment with robust banking support
• Gibraltar and Isle of Man – smaller jurisdictions with tailored crypto frameworks
• United Arab Emirates (Dubai VARA, ADGM) – emerging hub for crypto businesses, offering dedicated licensing frameworks (VARA in Dubai, ADGM in Abu Dhabi), regulatory clarity, and access to Middle Eastern markets.

Understanding the right license for your business and the regulatory requirements of your chosen jurisdiction is critical. Proper licensing ensures you can operate legally, gain customer trust, and access financial services without unnecessary hurdles.

Gambling licenses demystified: online, betting, and land-based operations

Just like in the crypto industry, gambling operators must hold the right licenses to operate legally and gain customer trust. Whether you run an online casino, a sports betting platform, or a land-based gaming venue, licensing is the foundation of compliance. It determines not only where you can operate, but also the payment providers, software suppliers, and marketing channels you can use.

Types of gambling licenses:

• Online casino licenses: for platforms offering slot machines, table games, and live dealer services.
• Sports betting licenses: for bookmakers offering fixed odds, live betting, and fantasy sports.
• Lottery licenses: for online or offline lottery draws, raffles, and prize competitions.
• Land-based casino licenses: for physical gaming establishments, including resorts and gaming halls.
• B2B supplier licenses:for companies providing game software, platforms, or services to licensed operators.

Key requirements:

• strict age verification and responsible gambling measures
• robust AML/KYC compliance and fraud prevention
• fair game testing and certification of random number generators (RNGs)
• financial transparency, regular audits, and tax reporting
• in some jurisdictions, proof of local presence or partnerships

Best jurisdictions for gambling licensing

• Malta Gaming Authority (MGA) – widely respected, EU-compliant framework
• United Kingdom Gambling Commission (UKGC) – strict but high-credibility licensing
• Curacao eGaming – affordable and flexible, popular with startups
• Gibraltar – strong reputation and access to European markets
• Isle of Man – supportive regulatory environment and business incentives
• Kahnawake Gaming Commission (Canada) – popular for online gaming operators targeting North America

Choosing the right gambling license depends on your target market, budget, and compliance capabilities. A license from a respected jurisdiction not only keeps you on the right side of the law but also gives you credibility with payment processors, partners, and players.

Business advantages of holding a valid crypto or gambling license

A proper license for your crypto or gambling business isn’t just a legal requirement; it’s a key asset that helps ensure long-term success and safe growth. A valid license signals to banks, payment processors, partners, and customers that your operations meet strict regulatory and security standards. This credibility can directly impact your ability to attract investors, enter new markets, and compete with established players. Key advantages for businesses include:

• access to banking and payment services – licensed businesses are far more likely to be accepted by reputable banks and payment providers, reducing transaction delays and costs;
• credibility and trust – customers and partners prefer working with licensed operators, knowing they are compliant with industry standards;
• market expansion opportunities – licensing in reputable jurisdictions often allows cross-border operations and entry into regulated markets;
• legal protection – operating with a license reduces the risk of fines, legal disputes, and shutdowns;
• competitive advantage – being licensed can set you apart from unregulated competitors, especially in industries where scams are common;
• partnership eligibility – many B2B providers, game studios, or crypto platforms only work with licensed businesses.

Essential legal and compliance obligations for licensed operators

A license for crypto or gambling operations comes with important responsibilities. Regulators require businesses to meet strict legal and compliance standards to ensure fair, secure, and transparent operations. Failure to meet these obligations can result in fines, license suspension, or even permanent revocation. Understanding these requirements is crucial for maintaining smooth business operations and long-term credibility. Key obligations include:

• anti-money laundering (AML) compliance – implementing robust procedures to detect and prevent money laundering, including monitoring transactions and reporting suspicious activity.
• know-your-customer (KYC) procedures – verifying the identity of clients to prevent fraud, underage gambling, and illegal activity.
• data protection and cybersecurity – ensuring personal and financial data is stored securely, complying with local and international privacy laws (e.g., GDPR).
• financial reporting and audits – maintaining accurate records, submitting regular financial reports, and undergoing independent audits as required by the license.
• responsible gambling and customer protection – implementing measures such as self-exclusion programs, deposit limits, and warning systems to protect vulnerable users.
• regulatory reporting – timely submission of required reports, including suspicious activity reports, compliance updates, and operational changes.
• ongoing training and internal controls – ensuring staff are trained on compliance requirements and maintaining internal policies to prevent breaches.

Step-by-step guide to applying for a crypto or gambling license

A license application in high-risk industries can seem hard, but clear steps make it easier. The following guide outlines the essential stages to secure a crypto or gambling license efficiently.

Determine your business type and target jurisdiction

Before starting the application, identify the exact type of license your business needs—crypto exchange, wallet provider, online casino, or sports betting platform. Then, choose the jurisdiction that best fits your business model, considering factors like regulatory requirements, market access, costs, and credibility.

Prepare necessary documentation

Regulators require detailed documentation, including company registration papers, business plans, compliance manuals, financial statements, and proof of capital. Accurate and complete documentation significantly increases your chances of approval.

Implement compliance and security measures

Ensure your business has robust AML/KYC procedures, data protection policies, responsible gambling measures, and cybersecurity protocols in place. Many jurisdictions require evidence of these systems before approving a license.

Submit the application

File the application with the relevant regulatory authority, including all required documentation and fees. Some jurisdictions allow online submissions, while others require physical copies. Double-check for completeness to avoid delays.

Respond to regulator queries and undergo review

After submission, regulators may request additional information, clarifications, or updates. Respond promptly and thoroughly. For gambling operators, this stage may also include background checks on owners and directors.

Pay fees and meet capital requirements

Most licenses involve one-time application fees, annual renewal fees, and minimum capital requirements. Ensure funds are readily available and documented to satisfy regulatory conditions.

Receive approval and maintain ongoing compliance

Once approved, your business can legally operate under the license. However, compliance doesn’t end here—ongoing reporting, audits, and adherence to all legal obligations are required to maintain your license in good standing.

Common mistakes that lead to license rejection and how to avoid them

Even experienced businesses can face delays or rejections when applying for crypto or gambling licenses. Understanding common pitfalls and addressing them proactively is key to a smooth approval process. Some of the most frequent issues include:

• Incomplete or inaccurate documentation – missing business plans, financial statements, or compliance manuals can immediately halt the process and create delays.
• Insufficient AML/KYC or security measures – regulators expect robust anti-money laundering, know-your-customer, and cybersecurity protocols that are well documented and enforced.
• Failure to meet jurisdictional requirements – each region has unique rules for capital, ownership, or local presence, and overlooking these can prevent approval.
• Poor financial transparency – unclear or unverified financial records raise red flags, making audited accounts and detailed reporting essential.
• Background issues with owners or directors – criminal records or undisclosed affiliations can jeopardize the application, so internal checks and honest disclosure are critical.
• Late or incomplete responses to regulator queries – delays or incomplete replies can stall approval, highlighting the need for a dedicated compliance team.
• Misunderstanding license scope – applying for the wrong type of license or underestimating operational limits can lead to rejection, emphasizing the value of expert guidance.

Avoidance of these mistakes not only increases the likelihood of approval but also speeds up the process, saving time and costs. Proper preparation and professional guidance can make the difference between rejection and a smooth licensing journey.

How Key2Law helps businesses secure and maintain licenses

Navigating the complex world of crypto and gambling licenses can be challenging, especially for high-risk businesses. Key2Law specializes in guiding companies through every stage of the licensing process, ensuring compliance, reducing risks, and speeding up approval times. They begin by assessing a business’s model and recommending the most suitable license, whether for crypto operations or gambling activities.

Key2Law also assists with preparing and submitting complete, accurate, and regulator-compliant documentation, while advising on the implementation of AML/KYC procedures, cybersecurity measures, and responsible gambling practices. Beyond the initial application, they provide ongoing regulatory support, keeping businesses informed of changes in laws and helping maintain continuous compliance. By managing communications with regulators and addressing queries promptly, Key2Law reduces delays and prevents misunderstandings.

Additionally, their expertise helps businesses expand into new jurisdictions or scale operations without jeopardizing license validity. With Key2Law as a partner, companies gain the confidence and legal security needed to operate successfully in high-risk, highly regulated markets.

Final takeaways for businesses entering crypto or gambling markets

Entry into the crypto or gambling markets offers great opportunities, but it also comes with significant regulatory responsibilities. Proper licensing is essential not only to stay compliant but to build trust, access banking and payment systems, and expand into new markets. Businesses that carefully prepare documentation, implement strong compliance measures, and work with experienced partners like Key2Law significantly increase their chances of smooth approval and long-term success. By understanding the requirements, avoiding common pitfalls, and taking a strategic approach, companies can operate confidently and grow sustainably in these high-risk industries.