How to choose a consulting company to obtain a crypto license?

Even long-established companies often require legal assistance when it comes to registering their activities in a new country. The issue is how to choose a consultant you can trust and not get your expectations betrayed. While every experience is unique, this article will provide the signs to look for in a good and credible corporate consulting agent. 

What Are the Services a Crypto Licensing Consultant Should Offer?

Normally, crypto licensing consultants provide the full range of services, from an initial assessment of your company and its current state to the license obtainment and ongoing compliance. Your experience should start with a meet-up or a call, during which the consultant sets your expectations clearly and explains the further steps. It is the job of a good consultant to draw a roadmap tailored to your exact request, not just a general list of demands that could be applied to any business out there. The approach must be individual, as the credibility of your company depends on it. Then, once the itinerary is built and approved, your agent must stay with you and provide assistance at every step of the licensing process. 

How Important Is Jurisdictional Expertise When Selecting a Firm?

Expertise in choosing the correct jurisdiction for a crypto license, depending on the needs of a particular business, is the most important aspect when choosing a legal consultant. Normally, the firm you’re zeroing in on must have local consulting experience in the country you want to be registered in. While it seems reasonable in theory, in practice, not so many consultants can boast relevant experience. It is crucial to look for a legal partner who is well-versed in the regulatory landscape and demands of your target country. For instance, if you’re looking to secure a VASP license in Estonia, your consultant should have clients there who can provide positive feedback. 

What Experience Should a Consulting Company Have in the Crypto Industry?

Having a long track record of successful deals in the crypto sector is good, but this experience must also be backed up by proven cases of satisfied clients. Therefore, we recommend looking not only for time-tested market players but also for those who have publicly shared the success stories of their previous and current clientele. Then, the company you’re considering should also have real experience negotiating with international regulators on behalf of their clients. Make sure to verify if the company actually has a stable connection with the authorities in the jurisdictions where it claims to operate. 

How Can You Verify the Track Record of a Crypto Licensing Consultant?

A lot of crypto licensing consultants share their track record publicly, posting articles and updates on their previous successful cases and even interviews with clients. Additionally, you can request detailed case studies directly from your agent, with anonymised but verifiable facts like license type, jurisdiction, and timeline. Also, it could be useful to check third-party reviews of the agency online. 

What Red Flags Should You Watch for When Choosing a Consultant?

Overtly fraudulent consultants or those who lack credibility do not stay in the business for long. However, if you end up stumbling upon one, here are the red flags to look out for:

• Guaranteeing approvals without assessing your company’s readiness.
• Lack of transparency about the process, timelines, or government fees.
• No clear contract or vague deliverables.
• Unrealistically low pricing that likely hides hidden costs or skips crucial compliance steps.
• No physical address or verifiable team, relying only on generic contact forms.
• Refusal to give references or avoidance of discussing past projects.

If the consulting company you’re working with ticks one or several of these boxes, it is a clear sign that you must halt your collaboration. 

Should You Choose a Local or International Consulting Company?

Local and international crypto consulting companies both have their advantages and downsides. Local businesses often boast better regulatory relationships, good knowledge of local administrative shortcuts, and understanding of jurisdiction-specific standards and norms. International consultants, on the other hand, offer a broader comparative experience and can suggest alternatives to your current desired jurisdiction. The compromise would be choosing depending on your business model and the location from which you’re planning to operate. If there is a good domestic consultant in Poland and you want to open a business in Poland, there is no reason to be looking for legal partners overseas instead of sticking to the EU-based specialists. 

How Transparent Should the Pricing and Licensing Process Be?

Normally, a reputable and trustworthy crypto legal consultant will provide a detailed breakdown of consulting fees, government fees, third-party costs (auditors, notaries, translators, etc.), and all the other expenses involved in the licensing process. Along with it, your legal partner must provide a clear and transparent outline of the stages of the procedure, approximate timelines, and milestones to be reached. In addition, look for a consultant who can identify and notify you of the risks and possible delays in advance, instead of sugarcoating the reality. Regulators are often busy, and a good legal agent will help you find the shortest route to licensing without compromising on quality. 

What Legal and Compliance Support Should You Expect?

From a good and experienced legal consultant, expect assistance in drafting AML/KYC policies and operational procedures that align with the regulator’s expectations. You will also receive guidance on corporate structuring and help with incorporating a company from scratch, if it is required. The consultant will negotiate with the regulator on your behalf and transmit all the necessary correspondence and documentation once it is prepared. In addition, a reliable consultant will stay by your side even after the licensing procedure is complete, ensuring your compliance post-licensing, including support with audits and reporting in those jurisdictions where they are necessary. 

Why Is It Important to Choose a Company That Understands Your Business Model?

A consultant who understands your business model is a must because licensing requirements can differ, sometimes drastically, for custodial exchanges, brokers, NFT platforms, DeFi protocols, and other crypto entities. Your agent will recommend to you the most fitting and cost-effective jurisdiction, depending on your exact project and structure your application in a way that will highlight your strengths in the eyes of the regulatory authority. Overall, a consultant like such will help you avoid licensing delays, undesired costs, or even outright rejections in the application process.