Compliance-First Launch Guide for Exchange Launch in Top Crypto-Friendly Nations

Introduction

While the UAE, Singapore, and the US receive the spotlight, a growing list of crypto-forward countries is quietly rolling out pro-crypto and exchange regulations. If you’re eyeing Switzerland, Hong Kong, the United Kingdom, or El Salvador, this part is crafted for you.

Let’s break down how you can legally launch your cryptocurrency trading platform leveraging custom development or white label exchange software next, and how to stay on the regulator’s good side while you do it.

1. Switzerland

Switzerland, the home to “Crypto Valley,” openly welcomes blockchain and crypto innovation but expects you to play by the rules. The Swiss regulators have a tech-neutral stance. Under FINMA’s “same business, same rules” principle, if you offer financial services (accepts or transmits assets for others), whether crypto or non-crypto, you must follow the same rules and laws applicable to any conventional financial institution. 

1. Regulatory Status & Licensing Options

• Cryptocurrency exchange software and wallet providers are treated as financial intermediaries.
• There’s no separate crypto license. You fit into existing frameworks. So, the same rules applied.  
• The Swiss Financial Market Supervisory Authority (FINMA) is your main regulator. So, you’ll require a FINMA-aligned white label crypto exchange to stay compliant while you slay the exchange business.
• You’ll need to either:
  • Join a FINMA-authorized Self-Regulatory Organization (SRO) for AML oversight, or
  • Depending on what you do, you need to get a direct license or authorization from FINMA (e.g., FinTech license, securities dealer license).

Are you a centralized crypto exchange holding client funds?
If your cryptocurrency exchange software platform holds fiat or crypto deposits from customers above a small threshold, you’ll need a form of banking license.
Many crypto firms opt for the FinTech License (a “banking light” option) for customer custody that allows public deposits up to CHF 100M with lighter capital requirements. 

2. AML/KYC Requirements
Switzerland enforces strict AML/CFT compliance for crypto businesses via the Anti-Money Laundering Act (AMLA).

• KYC is mandatory for transactions over CHF 1,000, reflecting a strict stance on anonymous transfers.
• As a cryptocurrency exchange software operator, you must actively verify identities, check beneficial ownership, and monitor transactions.
• Suspicious Activity Reports (SARs) must be filed as and when necessary.
• Travel rules are enforced on crypto exchange businesses. You must collect and share sender/receiver info on crypto transfers, just like traditional banks do during wire transfers. 

3. Licensing Standards & Consumer Protection

• FINMA evaluates your governance, risk management, and AML systems in detail. So, you need to show strong internal control.
  

  

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• As per FINMA’s substance over form philosophy, calling your platform a DEX won’t help dodge regulations. If you operate centrally or profit from your operations, you’re in scope.
• FINMA has shut down firms that held funds for unlicensed activity, whether crypto or non-crypto.
• There’s also a DLT Trading Facility license under the 2021 DLT Act, which is ideal for tokenized securities platforms.

Depending on what your white label crypto exchange facilitates and what you’re involved in, you’ll need to get a corresponding license. 

What Makes Switzerland Attractive for Crypto Innovation?

Switzerland isn’t lax. It’s just clear and fair. If you’re serious about compliance and credibility, launching your exchange in one of the world’s most reputable financial hubs is a strong long-term play.

• Pro-innovative, stable legal environment with clear rules
• Strong government support
• Competitive tax regime
• Sandbox opportunities for startups

Ensure you engage a legal advisor to navigate FINMA’s application process, as requirements can be quite detailed. Antier offers legal services for cryptocurrency launch across the globe, along with a robust crypto exchange white label software development solution that aligns with FINMA’s criteria. 

2. Hong Kong

Hong Kong is back on the crypto map, with an innovation-friendly, clear, and robust regulatory framework. The comeback was stronger, full support for retail trading, but only under a strict licensing regime led by the Securities and Futures Commission (SFC).

1. Mandatory SFC License (Since June 1, 2023)

• Any Virtual Asset Trading Platform (VATP) targeting Hong Kong users (operating from overseas or within) must be licensed by the SFC. So, it is preferable to launch your trading platform leveraging an SFC-compliant white label crypto exchange.
• Applies to centralized exchanges (order-book platforms like CEXs)
• Requirements include:
  • Local Hong Kong company
  • Minimum HK$25 million in core capital
  • Fit-and-proper management team (as per SFC’s guidelines)
• The SFC VATP handbook outlines platform operations, cybersecurity, custody, and compliance expectations.
• If you’re operating or advertising without a license, expect strict actions. 

2. AML/KYC & Travel Rule Compliance (Under AMLO)

• All licensed exchanges are regulated VASPs under the Counter-Terrorist Financing and Anti-Money Laundering Ordinance (AMLO).
• What’s required:
  • Full KYC onboarding
  • Risk-based customer profiling
  • Ongoing transaction monitoring
• FATF Travel Rule enforced:
  • Crypto transfers over HK$8,000 (~US$1,000) must include sender/receiver data.
  • Platforms must collect, verify, and transmit this info to relevant institutions. White label crypto exchange software development solutions must therefore be configured as per these requirements. 

3. Retail Protection Rules

The SFC imposed and issued strict investor protection guidelines in May 2023.

• Before onboarding retail users, cryptocurrency exchange software platforms must:
  • Conduct a knowledge test
  • Provide risk disclosures
  • Limit trading to approved large-cap tokens only
• No lending, staking, or promotional gifts allowed for retail users

4. Operational & Custody Standards

• SFC demands high standards for governance, internal control, and asset safety:
  • Segregate client assets (fiat & crypto) from the exchange’s fund
  • Use reputable independent custodians or a strong in-house wallet infrastructure
  • Maintain adequate insurance coverage for digital assets
• Regular audits and inspections are a standard part of the process.
• HKMA guidance extends to banks and institutions offering crypto custody services, emphasizing security and segregation. 

5. What About DApp or DeFi Cryptocurrency Exchange Software Development?

• Current rules majorly focus on centralized platforms, but:
  • DeFi exchanges or non-custodial wallet services are under constant scrutiny.
  • If you look like an exchange, expect to be treated like one.  Any organized activity that resembles exchange services could attract regulatory surveillance. 

Hong Kong welcomes crypto, but not chaos. If you’re building a compliant cryptocurrency exchange software with strong governance, you’ll benefit from Hong Kong’s deep crypto investor base and the most serious retail trader markets in Asia.

3. United Kingdom

The UK strikes a balance with a pro-innovation, but no-nonsense approach when it comes to abuse. If you plan to serve UK users, here’s what you need to cover:

1. FCA Regulatory Oversight (AML Focused)

• The Financial Conduct Authority (FCA) is the UK’s primary crypto regulator.
• From Jan 2020, any business engaging in any digital asset-related activity such as exchanging fiat-crypto, crypto-crypto, custody must register with the FCA under the Money Laundering Regulations (MLR). 
• This is not a full financial license, but a mandatory approval that your exchange has a proper AML/CFT system. Antier’s FCA-compliant White Label Exchange Software comes packed with the best AML/CFT control interfaces.
• To register, you’ll need:
  • Detailed KYC, record-keeping, and risk management policies
  • A vetted ownership structure
  • Owners/directors must pass a fitness and propriety test
• Operating unregistered is a criminal offense. Due to FCA’s high standards, the process takes months, and only a fraction of applicants get the licenses. So, it is advisable to hire a cryptocurrency exchange software development company that provides comprehensive legal services along with the exchange infrastructure.

2. AML/KYC & FATF Travel Rule Compliance

• Appoint a Money Laundering Reporting Officer (MLRO), and train your staff in AML obligations.
• Conduct full KYC onboarding: ID checks, source-of-funds, address verification, checks for high-risk clients. 
• Also, ensure to monitor transactions and flag suspicious transactions, and file SARs with the National Crime Agency.
• Since Sept 2023, the FATF Travel Rule has been enforced in the UK, as per which crypto firms:
  • Must collect and share originator/beneficiary info for crypto transfers between VASPs.
  • Update your tech stack for secure data capture and transfer. Even if you’re leveraging a white label crypto exchange, ensure that it supports that.
• Apart from this, adherence to sanction regimes (which require banning sanctioned persons or addresses from exchange services) is non-negotiable. The cryptocurrency exchange software must also screen all users for sanctions and PEP (Politically Exposed Persons) lists.

3. Licensing for Certain Activities

Apart from basic AML registration requirements for spot trading of non-security tokens, your cryptocurrency exchange software may be subject to other laws based on your business model.

• If your cryptocurrency exchange software offers:
  • Crypto derivatives (futures, options), which are regulated financial instruments in the UK, you’d need appropriate permission under the Financial Services and Markets Act (FSMA).
  • Security tokens (tokenized shares, bonds, etc.) fall under existing security laws and require FCA financial authorization.
  • NFTS, you’ll fall under the security laws if your offerings are deemed as securities. NFT marketplaces are generally unregulated as of 2025.

Pro Tip: Based on your business model and offerings, you’ll need a white-label crypto exchange Software Development solution that not only supports your functional requirements but also adheres to the regulatory criteria specified by law. Antier offers FCA and FSMA-compliant turnkey exchange solutions.

• As of 2025, the spot trading of non-derivatives and non-security tokens isn’t yet regulated, but HM Treasury has consulted on a new crypto asset regulatory regime to bring exchanges, lending, staking, and other services under full FCA supervision for consumer protection and prudential oversight.
• FSMA also envisions treating many crypto-related businesses similarly to TradFi institutions. 

4. Marketing Restrictions

• Since 2023, marketing crypto to UK consumers has been tightly controlled. Crypto promotions must be clear, fair, and not misleading.
• Only FCA-registered or authorized firms can advertise crypto services and communicate with customers in the UK.

Bottom Line:
Stay alert as the UK is evolving into one of the most regulated, credible crypto markets in the world. More comprehensive crypto laws are expected to arrive, solidifying its stance as a safe crypto hub. You’ll need to get it right with the help of your crypto exchange white label software development company’s legal services, and your exchange will be future-proof.

4. El Salvador

El Salvador made history by adopting Bitcoin as legal tender in 2021, and since then, it hasn’t looked back. For crypto exchange operators, it offers an innovation-friendly, pro-crypto, tax-friendly climate backed by a fast-evolving regulatory framework.

1. National Digital Assets Commission (NDAC)

• El Salvador passed the Digital Assets Issuance Law in 2023 to regulate the broader digital assets beyond Bitcoin, appointing an independent NDAC as the chief regulator for crypto businesses. 
• The independent body is focused solely on digital assets, operating outside the TradFi regulators.
• To legally launch a cryptocurrency exchange software, issue tokens, or act as a crypto broker, you’ll need to secure a crypto services license from this commission. It is usually a straightforward and business-friendly process, but it still requires meeting certain standards. 

2. Licensing Process

To obtain the crypto exchange license in El Salvador, you’ll need to:

• Set up a local legal entity with a robust organizational structure.
• Appoint an AML compliance officer and implement international-grade KYC/AML policies.
• Submit documents like business registration, security policies/measures, risk management plan, and financial statements.
• Meet capital requirements as per exact thresholds set by the regulators(paid-in capital/reserves) to ensure the financial soundness of cryptocurrency exchange software solutions.
• The exchange operators need to engage directly with the commission, and it itself communicates to other government bodies as and when needed. As the law invites innovations in the crypto sector, the authorities are usually responsive and helpful during the licensing process.

3. AML/KYC Compliance

• El Salvador embraces crypto but requires cryptocurrency exchange software providers to thoroughly follow the AML/CFT rules as per the FATF standards.
• Mandatory KYC, transaction monitoring and record-keeping, and suspicious activity reporting are required.
• As per DCA, AML policies are reviewed during the licensing process. Antier offers DCA and NDAC approved white label crypto exchange solutions to ensure a smooth launch and compliance.
• El Salvador’s framework offers strong investor protections. For e.g., the law makes any legal certainty in digital asset transfers mandatory and ensures thorough examination of any public token offerings.
• Bitcoin is legal tender, but all other tokens fall under the Digital Assets Law, and therefore, cryptocurrency exchange software operators need to comply with their rules. The commission may also conduct due diligence to prevent fraud and stay informed. 

4. Key Benefits of Launching in El Salvador

• Zero capital gains tax on Bitcoin and digital assets
• Tax exemptions for foreign-sourced income (An advantage for foreign global exchange operators)
• Strong government support for crypto innovation
• The country has a pro-business stance and establishes clear legal certainty on asset transfers.

El Salvador is a serious contender for cryptocurrency exchange software launches, especially if you value speed, tax efficiency, and a government that supports Web3. Regulators here may be friendly, but they don’t compromise on standards, so keep your compliance game strong. With an NDAC-compliant Crypto Exchange White Label Software Development and legal services specializing in El Salvador’s regulations, you’re good to go.

Conclusion

Launching your cryptocurrency exchange software in these countries is a profitable venture and is quite simple due to regulated environments. But you’ll still need to abide by the laws, whether you’re launching in a regulatory heavyweight like the UK or a fast-moving hub like El Salvador. The seven crypto-forward countries we’ve discussed (in this blog and the previous part) strike a balance between openness to crypto innovation and strong compliance standards. 

As an entrepreneur, asking the right questions is vital: 

What license do I need? Which regulators will oversee my business? What are the KYC/AML obligations? And most importantly, which white label crypto exchange software development solution aligns with my target jurisdiction?

The rest of the answers may vary country by country based on different

• Licenses and Regulators 
• KYC/AML Requirements
• Consumer Protection and Best Practices

And for your crypto exchange white label software development solution, you must choose Antier. With a compliance-first mindset and Antier’s cryptocurrency exchange software development and legal expertise, you can build a strong groundwork for your exchange that withstands scrutiny and wins customers’ and partners’ trust. 

Why Choose Antier?

At Antier, we don’t just build cryptocurrency exchange software, but we help you launch it where it’s legal, scalable, and future-ready. From technical development to licensing support, AML integration, and post-launch compliance, we’ve done it across 25+ jurisdictions, and we know what works and what doesn’t. 

Your exchange deserves more than good code. It deserves a legally sound launch.

Let’s build it right with Antier!