According to statistics, the estimated average ownership rate of cryptocurrency was 3.9%, which means that there are more than 300 million people using cryptocurrency around the world. In addition, over 18,000 companies choose to accept cryptocurrency as payment for their product or service.
The increasing adoption of cryptocurrency is encouraging businesses to launch their crypto exchange platforms as they are seen as an opportunity to earn money.
If you are planning to launch your white label crypto exchange software in 2024, this step-by-step guide will help you get started.
Start Your White Label Crypto Exchange Software:
1. Seek Legal Counsel To Ensure That All Licensing Requirements Are Met
Before you put your strategy into action, you need to get legal advice to understand the regulatory requirements of your new enterprise. All jurisdictions in which the firm intends to operate will require proper licence. Since government rules have failed to catch up with technology, many cryptocurrency exchanges operate with hardly any oversight. Other countries, like the United States, require Bitcoin operators to be licenced Money Transmitter firms and adhere to SEC and CFTC rules and regulations, among other things. Proper legal guidance is required. Because exchanges operate under the currency exchange umbrella, businesses are required to follow Know Your Customer (KYC) requirements, which have grown increasingly widespread in order to prevent money laundering. These laws, for example, have been in force in the United States since 2002 as a result of the Patriot Act. Regulations differ by jurisdiction, so check with an attorney who is knowledgeable with the sector.
2. Attain Funding For The Venture
Before you begin with white label crypto exchange software development, you should have an idea of how much it will cost. The development cost includes technology, hosting, some first legal guidance, government registration, and initial advertising. While not all funds are necessary up front, it is critical that the business has access to sufficient finance to provide for a proper runway. A mistake that most startups commit is failing to prepare for the future, resulting in tiny first fundraising that may cover development expenditures but leave the firm without the vital funding required for operations until it becomes profitable. Startups frequently make the mistake of obtaining authorization from unscrupulous crypto exchange providers who demand recurring fees and fail to disclose the legal duties and costs associated with establishing and operating an exchange.
3. Locate A Provider Of Crypto White Label Exchange Solutions
Antier Solutions offers a world-class crypto white label exchange with a one-time licensing cost that includes no royalties or compensation arrangements. This implies that there are no recurring costs, that clients may host the exchange themselves, and that clients receive entire source code, which is vital for auditing purposes because certain regulators insist that the source code should be inspected. Antier has years of experience building stock exchanges, including backend technology used by some of the world’s leading exchanges, and is continually searching for new ways to provide value to its clients.
What’s the point of white labelling with source code? White label exchange software with full source code enables for all of the customisation of a custom-built exchange while dramatically reducing time to market and development cost.
4. Connect Your Exchange With Others For Added Liquidity
Liquidity is the foundation of every effective exchange. Potential clients will be sceptical of your new enterprise if it lacks an order book and trading activity. To avoid these challenges and avoid the need to imitate activity through dummy accounts inside the new exchange, we may connect your exchange to a network of current exchanges, increasing its liquidity. Remember that the broader the network of exchanges, the less liquidity your new exchange would face.
5. Partner With A Payment Processor
Launch Your Own White Label Crypto Exchange
Payment processors are not all created equal. Fee arrangements, among other things, will differ greatly between businesses. To compete with other exchanges, you must have the lowest transaction rate. Furthermore, some processors include hidden costs in their contracts, so make sure you understand what you’re signing. Other distinctions between processors include settlement time and PCI DSS compliance, which is a set of best practises for ensuring cyber security. It is important to note that in the United States, federal law does not mandate compliance, although many state laws do. To protect your new business from cyber dangers, ensure that your payment processor is PCI-compliant. This is just another illustration of why it is critical to comprehend the complexities of industrial regulation.
6. Implement Best Security Practices
Cryptocurrencies have become a prime target for cybercrime and hacking. Thus, it is important that you fortify your exchange with the right security features.
The white label crypto trading platform delivered by Antier Solutions is among the most secure in the world, with offline cold storage wallets, two factor authentication, and encrypted databases. Passwords are also not stored by Antier Solutions (only hashes).
7. Go live via beta testing
You’ve created your exchange . You’ve signed a deal with a payment processing company. And you’ve gone to great lengths to ensure that your transaction adheres to all rules and regulations. You have assured that your business is safe from cybercriminals. It’s now time to launch your exchange and put its entire range of features to the test in beta.
8. Start Marketing And PR Campaign
Once your exchange has gone live, it’s time to connect with crypto news publications like Coindesk. It is critical to properly organize your marketing initiatives, as well as their expenditures, to ensure that your initial raise does not leave you scrambling for further funds. Often, exchanges do not have a marketing budget, instead relying on free social media marketing to reach a critical mass of traders.
9. Take Care In Providing Customer Support
While customer service is the final step in the process of creating a successful cryptocurrency exchange, your ability to excel in this area will decide your long-term success. Those who interact with customers must be attentive and address customer complaints and technical difficulties satisfactorily. Customers should be contacted as soon as possible, so consider installing a ticketing system like ZenDesk and staffing it with experienced and helpful personnel who are accessible 24 hours a day, seven days a week, because cryptocurrencies never stop trading.
10. Maintain A Legal Team For Ongoing Compliance.
We cannot emphasize enough how critical it is to maintain legal compliance and adhere to all current and proposed laws and regulations, not only in the jurisdiction in which your exchange is domiciled, but also in all foreign jurisdictions where your exchange members or traders will reside or conduct trading. Because cryptocurrency rules are continually changing globally, it is critical to either engage a full-time in-house legal compliance staff or outsource to renowned law firms in order to make your exchange lawful in all geographies where you will conduct business.
Read More:-
https://www.antiersolutions.com/10-steps-to-launch-your-white-label-crypto-exchange-in-2024/
