Crypto brokers are starting their development in Belarus due to the increasing interest in cryptocurrencies. They offer a wide range of services for investing in cryptocurrencies and developing investment strategies using tokens. The specifics of the work of crypto brokers and their provision of services need to be understood in order to successfully invest in cryptocurrencies. To interact with crypto brokers, you may need the help of experienced specialists, which our company is ready to provide.
When Residents of a Hi-Tech Park Can Be Crypto Brokers
Residents of the Belarusian Hi-Tech Park can engage in the activities of a crypto broker when:
- their company is updating a business project;
- concludes an agreement with the Administration of the Hi-Tech Park and discloses information on its website;
- organizes work to prevent the legalization of income related to criminal activities, the financing of terrorist activities and the proliferation of weapons of mass destruction.
Also, employees of a crypto broker who make transactions with tokens in the interests of clients must have a qualification certificate of a securities market specialist of the first category.
What rules crypto brokers need to follow
Crypto brokers are required to comply with the rules of operation, including:
- Make deals only with residents of the Hi-Tech Park;
- Keep separate records of transactions;
- Do not allow joint accounting of your money and customer funds;
- Monitor financial transactions to prevent money laundering;
- Provide clients with a report on the execution of contracts;
- Keep a sound recording (video recording) negotiations with clients (the client is notified in advance about the recording of negotiations);
- Take measures to ensure that one client does not create multiple accounts.
What services crypto brokers provide
Crypto brokers provide consulting services to clients on all issues related to transactions with tokens. They can clarify questions about transactions with cryptocurrencies, their storage, market analysis to develop investment strategies and minimize risks. They can also execute orders from clients and make one or more transactions with cryptocurrencies on their behalf, but at their expense. These transactions can be carried out on a crypto exchange or on the open market.
Who can contact a cryptobroker
A cryptobroker can work with clients-individuals and companies. For individuals, the main requirement is age — they must be over 18 years old.
Other general requirements for both companies and individuals include the following:
- Clients cannot use the services of a crypto broker if such services are prohibited in the country of which the client is a resident.
- The clients of the crypto broker cannot be persons included in the list of persons involved in terrorist activities, as defined by the SSC of Belarus. Also, the clients of the crypto broker cannot be the beneficial owners of the persons included in this list.
What kind of customer information cryptobrokers use
Crypto brokers are prohibited from making transactions for anonymous clients, so they request a small list of information.
Individuals must provide the following information:
Full name, nationality, date and place of birth, as well as details of a passport or other identity document.
Clients-legal entities provide:
The name, number and date of registration, the body that registered the company, and these data are also provided by individual entrepreneurs. In addition, it is necessary to specify the location and registration number of the payer or the identification number of a non-resident.
When a cryptobroker makes transactions on behalf of clients on a crypto exchange, the cryptobroker may require clients to provide additional information specified in the agreement between the cryptobroker and the crypto exchange.
In what order crypto brokers provide services
Crypto brokers advise clients after signing a contract with them for the provision of paid services.
Crypto brokers make transactions with cryptocurrencies on behalf of clients on the basis of a fee-based commission agreement.
Let’s look at the steps that a client goes through when interacting with a crypto broker to make transactions with cryptocurrencies under a commission agreement.
Step 1. Familiarization with the risks
The client is introduced to the commission agreement and the risks of token transactions. The client signs the information that the crypto broker is not responsible for the client’s decisions regarding investing cryptocurrencies.
When the client is a citizen of Belarus, the cryptobroker offers him to answer the questions of a special test. The test helps to determine whether the client has enough knowledge to participate in transactions with cryptocurrencies.
Step 2. Signing the assurance of the circumstances
The Client signs an assurance of the circumstances before concluding the commission agreement. The client must guarantee to the crypto broker that the account and the crypto wallets that will be used in transactions with cryptocurrencies belong to this client. The client also guarantees that he will not provide access to his account to other persons.
Step 3. Signing the commission agreement
The client needs to check several important terms of the contract. In particular:
- How many and which cryptocurrencies are mentioned in the contract and what the crypto broker will do with them: buy, sell, exchange;
- What commission fee should be paid to the crypto broker;
- In what order are the settlements between the client and the cryptobroker;
- What the client is financially responsible for;
- In what time frame and what kind of reporting does the cryptobroker provide to the client;
- When and in what order cryptocurrencies are displayed on the client’s crypto wallet.
Step 4. Instruct the cryptobroker to make a deal
In order for the cryptobroker to start making transactions in the interests of the client, the client submits an application to the cryptobroker. Prior to receiving the application, the cryptobroker does not provide services to the client. The application usually indicates:
- What kind of deal or transactions should a crypto broker make under certain conditions (marginal prices, when transactions can be made or the level of profitability);
- Name and number of cryptocurrencies;
- Other information that the cryptobroker needs to fulfill the request.
Step 5. Payment of money by the client to the cryptobroker
The money is transferred to a bank account or an electronic wallet of a crypto broker. Usually, the money transfer takes place simultaneously with the sending of the application to the crypto broker. When a cryptobroker works on a crypto exchange, at the request of a client, he transfers money to a crypto exchange where transactions with cryptocurrencies are made.
When transactions with cryptocurrencies are concluded on behalf of clients on the crypto exchange, the client can ask the crypto broker for a loan in tokens at interest.
Step 6. Getting cryptocurrency for a crypto wallet
To withdraw cryptocurrency to the client’s crypto wallet, he gives an order to the crypto broker. The terms and conditions for the withdrawal of cryptocurrencies are specified in the commission agreement, which is concluded by the client and the cryptobroker.
At all these stages, the client is accompanied by our experienced specialist, who will advise on all issues that arise.
We organize interaction between clients and crypto brokers and are ready to advise you on all issues related to the choice of crypto brokers and investing in cryptocurrencies.
How we can be useful in organizing interaction with crypto brokers
Our lawyers and attorneys are experienced specialists in the field of interaction with crypto brokers and investing in cryptocurrencies.
We can:
- Advise you on the choice of a crypto broker and interaction with it.
- Check the package of documents provided to you by the cryptobroker and give an opinion on the probability of earning income.
- Represent your interests when interacting with crypto brokers.
Contact us
If you have any questions in the field of interaction with crypto brokers, we will be happy to help you! Our exceptional experience in working with companies that invest in cryptocurrencies will help you resolve any situations.
Phone and e-mail communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@ambylegal.by.
