How to get your token listed on a Cryptocurrency Exchange? India 2024

Cryptocurrencies have pervaded public imagination in more ways than ever before. While initially, it started with Bitcoins, there are over a thousand cryptocurrencies as of date with varying degrees of popularity. While ICOs reflect the buzz around cryptocurrencies, the bulk of the transactions relating to the conversion of these cryptocurrencies happen on cryptocurrency exchanges.

What do cryptocurrency exchanges do and why are they important?

A cryptocurrency exchange is a platform that allows conversion of cryptocurrency to another or from fiat currency to cryptocurrency and vice versa. It can be compared to your neighborhood money changes who change your local currency to a foreign currency or allows you to change your foreign currency back to your local currency. The only distinguishing factor between both of them is while your local money changer works through a physical establishment and deals with fiat currencies, a cryptocurrency exchange works online and deals with cryptocurrencies.

Cryptocurrency exchanges are vital for the circulation and trading of cryptocurrencies and without the availability of a particular currency on an exchange, users could not be able to obtain it or liquidate their holdings of the currency when they require. For a cryptocurrency, not being listed on a cryptocurrency exchange is a major hindrance as then it no longer remains a potential purchase option for anyone who was not able to obtain it during the ICO. Users may even not take apart for a token in an ICO if it is not listed on an exchange as they desire the ability to change their cryptocurrency to any other asset, based on market conditions. It is also essential for them to be able to change their cryptocurrency into fiat currencies as not all transactions are possible through cryptocurrencies.

In a nutshell, listing on a cryptocurrency exchange is crucial to the acceptability of a cryptocurrency and its functioning.

How can I get listed on a cryptocurrency exchange?

Considering the importance of listing for any cryptocurrency, it is crucial for cryptocurrencies to know the path for listing on a cryptocurrency exchange. This process involves the following key steps:

The first step is communication with a preferred cryptocurrency exchange about a potential for listing on the exchange. It is essential that a thorough evaluation is made on the background of the exchange and its functioning. The key parameters which are often discussed are:

a) Whether the exchange operates in the countries where you want the circulation of your cryptocurrency?

b) Does the exchange allow conversion from fiat currency to cryptocurrency or only between cryptocurrencies?

c) Whether the exchange is centralized or decentralized?

d) The listing fees charged by the exchange

e) The technical details of the token and the platform

Considering the complexity of the issues to be considered in the listing process, it is highly recommended that token issuers should approach a professional who has experience in the token listing process. The professional can assist in narrowing down on potential exchanges for listing and simplify the application process for listing.

In the next step, the exchange through the professional communicates a list of documents that would be required for the listing process. Normally, the professional arranges documents such as legal memorandum on behalf of the token issuer. Empire Global has an in-house team of legal experts who have expertise in the legal evaluation of the compatibility of a Token with the existing legal framework.

The third step involves the filling up and filing of the application form along with the required documentation and fee. After the filing process is complete, the professional will generally followup on your behalf to understand the progress of the application process.

If the application is accepted, the final stage involves the technological integration of the token with the exchange and arrangement of the payment process for issuance of new tokens and any transfer of an additional fee for listing.

What are the documentation requirements for listing on an exchange?

The documentation requirements for listing on a cryptocurrency exchange can vary depending on the exchange and the token which is sought to be listed. The exact requirements will normally be communicated by the professional that you have engaged to assist in the listing process.

The following documents are required in the listing process:

a) Information about the Token issuer and the entire team involved

b) The problem that the token seeks to resolve

c) The technological background and the platform where it is used

d) The utility of the Token

e) Current status of the platform and the token

f) Legal memorandum from a qualified legal professional about the compatibility of the token with the existing legal framework (it is arranged by Empire Global)

g) The Whitepaper and the ICO process

h) Information about any regulatory action

Additional documentation may be sought by a particular exchange where you want to list your token during the consultation process.

Costs involved and time required for the listing of a token on an exchange

The costs for the listing of a Token can vary depending upon the exchange and the current status of the Token. The process of listing takes around 15-60 days.

 DISCLAIMER

The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that we are not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. CA Mitesh and Associates is Mumbai's leading Cryptocurrency Taxation Firm which is committed to helping people navigate complex tax laws and banking regulations. Our main aim is to assist the individuals with applicable laws & regulations compliance and providing support at each & every level to make sure that they stay compliant and grow continuously. For any query, help or feedback you may get in touch here - Appointment with CA. Please note the all consultations with the CA are Paid consultations.