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Statistics show that there are more than 300 million users of cryptocurrencies worldwide, with the estimated average ownership rate of cryptocurrencies being 3.9%. Additionally, more than 18,000 businesses decide to accept cryptocurrencies in exchange for their goods or services.
Businesses are launching their bitcoin exchange platforms thanks to the growing acceptance of cryptocurrencies, which is considered as a chance to make money.
This step-by-step manual will assist you in getting started if you intend to introduce your white label cryptocurrency exchange software in 2023.
Top 10 Mandatory steps to start a white label crypto exchange platform
- Consult with a lawyer to make sure all licencing requirements are met
You should get legal counsel to better grasp the regulatory requirements for your new business before putting your plan into action. Every country where the company plans to conduct business will need the appropriate licensing. Since governmental regulations have not kept up with technology, many bitcoin exchanges function with little to no regulation. Other nations, like the US, have laws requiring license money transmitter companies and compliance with SEC and CFTC rules and regulations, among other things, for Bitcoin businesses. Proper legal counsel is necessary.
Exchanges fall within the definition of a currency exchange, thus companies must go by Know Your Customer (KYC) regulations, which are becoming more and more common in order to stop money laundering. For instance, as a result of the Patriot Act, these laws have been in effect in the United States since 2002. Consult a lawyer who is experienced in the field as regulations vary by jurisdiction.
- Secure Funding For The Project
You should have an estimate of the cost before you start developing white label crypto exchange software. Technology, hosting, some preliminary legal advice, government registration, and first advertising are all included in the development cost. Even while not all assets are required right away, it's crucial that the company has access to enough capital to provide itself a reasonable runway. Most startups make the error of neglecting to plan ahead, which leads to a meager initial fundraising effort that may cover development costs but leaves the company without the crucial cash needed for operations until it turns a profit.
Startups commonly make the error of securing approval from dishonest cryptocurrency exchange providers that demand recurring fees while concealing the legal obligations and expenses related to establishing and maintaining an exchange.
- Discover A Crypto White Label Exchange Solution Provider
A top-notch cryptocurrency white label exchange is provided by Clarisco Solutions for a one-time licensing fee that does not contain any royalties or payment terms. This suggests that there are no ongoing fees, that users may host the exchange themselves, and that users obtain the complete source code, which is essential for auditing because certain authorities require that the source code be examined. Clarisco is constantly looking for new ways to provide value for its clients and has years of expertise developing stock exchanges, including the backend technology used by some of the top exchanges in the world.
What use does white labeling with source code serve? White label exchange software with complete source code provides complete customisation of a custom-built exchange while significantly lowering time to market and development cost.
- Join Other Exchanges For More Liquidity
Every successful exchange is built on liquidity. If your new business lacks an order book and trade activity, potential customers will doubt it. We may link your exchange to a network of active exchanges, increasing its liquidity, to prevent these difficulties and the requirement to simulate activity using dummy accounts inside the new exchange. A wider network of exchanges means less liquidity for your new exchange, so keep that in mind.
- Work with an online payment processor
Not all payment processors are created equal. Among other things, fee schedules will vary widely amongst firms. You need to have the lowest transaction rate possible to compete with other exchanges. Additionally, you should make sure you read the deal you're signing because some processors add unstated fees in their agreements. Settlement time and PCI DSS compliance, which is a set of best practices for protecting cyber security, are two more differences amongst processors. It is essential to remember that while many state laws in the US require compliance, federal law does not. Make sure your payment processor complies with PCI standards to safeguard your brand-new company from cyber threats. This is just one more example of how important it is to know the intricacies of industrial regulation.
- Use best security practises
A popular target for hacking and criminality now is cryptocurrencies. As a result, it's crucial that you strengthen your exchange with the appropriate security measures.
Due to its offline cold storage wallets, two factor authentication, and encrypted databases, Clarisco Solutions' white label crypto trading platform is among the most secure in the world. Clarisco Solutions does not keep passwords; only hashes are kept.
- Go live with beta Version
Your exchange has been created. You've agreed to a contract with a business that handles payments. And you've taken great care to make sure your transaction complies with all laws and guidelines. You've made sure that cybercriminals won't harm your company. Now is the moment to launch your exchange and begin beta testing all of its features.
- Start your marketing and PR campaign
Connecting with crypto news outlets like Coindesk is necessary after your exchange has gone live. In order to prevent having to look for further funding after your first rise, it is crucial to organize your marketing campaigns and their associated costs appropriately. Frequently, exchanges rely on free social media marketing to attract a critical mass of traders in the absence of a marketing budget.
- Providing Customer Support
The final phase in building a successful cryptocurrency exchange is customer service, but how well you do in this area will determine your long-term success. Customers must be paid attention to, and any issues with the technology must be effectively resolved. Customers should be addressed as quickly as possible, so think about setting up a ticketing system like ZenDesk and staffing it with knowledgeable and friendly individuals who are available twenty-four hours a day, seven days a week, as cryptocurrency trading never ends.
- Keep a Legal Team For Ongoing Compliance
The importance of maintaining legal compliance and abiding by all existing and proposed laws and regulations, not only in the country where your exchange is based but also in all other countries where your exchange's members or traders will live or conduct business, cannot be overstated. To ensure that your exchange is legal in any country where you plan to do business, you must either hire a full-time in-house legal compliance team or outsource to reputable law firms because cryptocurrency regulations are constantly changing throughout the world.
With features like a multi-currency wallet, a strong matching engine, the capacity to process up to 100,000 transactions per second, institutional-grade security, and an intuitive user interface, Clarisco Solutions white label cryptocurrency exchange software offers a seamless trading experience.
Make an appointment for a free demonstration of our white label crypto exchange software, or get in touch with one of our subject matter experts to discuss your company's needs.
