A crypto exchange license is not a one-size-fits-all approval. The term is often used loosely, but licenses typically cover specific activities for a company within a particular country. Core functions like spot trading and custody are usually included, but additional services such as staking, lending, and derivatives often require separate licenses or are restricted for retail customers.
As of September 2026, regulations vary significantly across regions. In the European Union, MiCA authorization covers trading and custody but excludes lending and borrowing. Crypto derivatives fall under MiFID II. Japan requires separate registrations for derivatives, while Singapore's MAS license prohibits lending and staking for retail customers. The UK's FCA registration is limited to anti-money-laundering, with a full regime expected in October 2027.
Hong Kong allows staking only after license modifications and restricts perpetuals to professional investors. The US lacks a federal license, relying on state licenses like the BitLicense and CFTC-registered venues for derivatives. Canada prohibits margin and leverage under securities regulators' undertakings.
Regulatory registrations, such as those with FinCEN or FINTRAC, do not equate to endorsements or licenses. Users can verify a company's license by checking their country's regulator's register, comparing the license type with desired products, and reviewing product terms for any discrepancies.