Crypto is a massive trend right now. Thousands of entrepreneurs are pouring into the space, looking for ways to create viable products that will be useful in the real economy. 

But getting businesses right in this space is challenging. We’ve seen all sorts of firms set up, only for regulators to knock them down. 

That’s why it is essential to know your do’s and don’ts of crypto entrepreneurship. Knowing how to go about setting up a business increases the likelihood of success significantly. 

So, what should you be doing, and not doing? 

Do Implement KYC

Whenever you take on a new customer as a crypto business, it is essential to perform your required KYC, particularly if you are allowing trading. Governments want you to keep track of the people who use your platform, collecting things like their ages, addresses, and IDs. 

The rules regarding what you have to collect depend on your governing authority. The SEC’s rules in the US are different from the FCA’s rules in the UK. 

Don’t Ignore Compliance Advice

A big don’t for anyone wanting to get into the crypto industry is to ignore compliance advice. You want to ensure that you stay up to date with all the latest regulations. Finding out how LLCs work and the measures you need to put in place is essential. 

Do Be Transparent

At the same time, you want to be completely transparent about your operations. Regulators are already sceptical of people in the crypto space and the risks associated with those currencies. So beware of making any misleading or exaggerated claims. Keep your language within the boundaries of the law to avoid saying anything that might cause blowback. 

Don’t Cut Security Corners

You also want to be cognisant of cutting corners on security measures. Failing to protect users’ data can lead to serious brand damage and even litigation. 

Numerous cryptocurrency outfits have fallen prey to scams and customers have lost money. Criminals will often take data and then ask for a ransom or simply use it to steal money directly, putting all the money at risk. 
Therefore, take precautions, such as using encrypted data and secure servers. Also, ensure that the number of system administrators you have is as low as possible and that you keep these people’s identities hidden from public view. 

Do Stay Informed

During your crypto business journey, it’s also an excellent idea to remain informed. Understanding how the industry works and what you should be doing next is a wonderful way to protect your enterprise and get the most from it. 

You’ll want to stay up to date on numerous fronts, including regulation and trends in pricing. Keeping up to date with the news makes it easier to adapt your business practices. 

Don’t Operate Without Registering

Finally, you want to avoid beginning operations without registering. You usually have a few weeks or months grace period, depending on where you live, but don’t ignore it indefinitely. Keep chugging forward and ensure that you have the proper paperwork in place.