How to Check Whether an Exchange Is Licensed

To check whether a crypto exchange is licensed, find the exact legal entity that operates it (usually in the terms of service or website footer), then search for that entity on the official public register of the regulator it claims, and confirm that the name, registration number, permitted activities and website domain all match. Never rely on a license number, logo or certificate shown only on the exchange's own website.

Licensing claims are one of the easiest ways for a fake or unregulated platform to look trustworthy. Fake exchanges often display official-looking certificates, invented license numbers or registrations for activities that have nothing to do with holding customer crypto. A ten-minute check on the regulator's website cuts through all of it. Rules differ by country and change over time, so treat this as a method rather than legal advice.

Step 1: Identify the Legal Entity

Exchanges are brands; licenses are held by companies. Look for the legal entity name in:

• The website footer
• The terms of service or user agreement
• The privacy policy
• The "About" or "Legal" page

Large exchanges often operate through different entities in different regions. Note which entity your account would actually be with, as this determines which regulator and rules apply. If you can't find any legal entity name at all, treat that as a serious red flag. Our guide on how to check a project's legal entity and jurisdiction covers this in more detail.

Step 2: Find the Right Regulator

Identify which regulator the exchange claims, or which one would supervise crypto firms where you live. Examples of public registers include:

Always navigate to the regulator's website directly, using a search engine result you have checked or a known address. Scammers sometimes build fake "regulator verification" pages.

Step 3: Search the Official Register

On the register, search by entity name and, if given, by registration number. Then check:

1. 1Status: Is it authorized, registered, pending, revoked, expired or canceled?
2. 2Name match: Is it exactly the same legal entity, not a similarly named company?
3. 3Permitted activities: Does the license cover crypto custody, exchange or trading services, or only something unrelated?
4. 4Websites and trading names: Many registers list approved domains. Does the site you're using appear there?
5. 5Contact details: Do the registered address and phone match what the exchange publishes?

Step 4: Understand What the Status Means

Not all statuses offer the same protection:

• Registration in some jurisdictions means the firm meets anti-money-laundering requirements. It doesn't necessarily mean the regulator checks solvency, custody or how customers are treated.
• Authorization or licensing usually involves wider requirements, such as capital, governance, custody rules and complaint handling.
• Exemptions and pending applications may let firms operate temporarily, but provide less assurance.

Even a strong license doesn't make crypto holdings insured or guarantee an exchange can't fail. Read what happens to your crypto if an exchange goes bankrupt to understand the remaining risks.

Step 5: Check Warning Lists

Many regulators publish lists of unauthorized firms and "clone" firms that impersonate genuine, licensed companies using similar names and fake websites. Search the exchange's name and domain there. A clone scam can look perfectly licensed until you notice the website domain on the register differs from the one you're using. Our guide to regulatory warning lists explains how to use them.

Red Flags in Licensing Claims

• A license number that doesn't appear on the regulator's register.
• Registration in a jurisdiction known for light oversight, presented as if it were full regulation.
• Business registration certificates (proof a company exists) presented as financial licenses.
• A license for an unrelated activity.
• Regulator logos with no link to an official register entry.
• Pressure to deposit quickly, guaranteed returns or withdrawal "taxes," which are classic signs of fake crypto exchanges.

If You Can't Confirm the License

Sometimes the search is inconclusive: the register is hard to navigate, the entity name is in another language, or you find a similar but not identical company. In that case:

1. 1Contact the regulator directly through the contact details on its own website and ask whether the firm is authorized.
2. 2Ask the exchange for its exact legal entity name and registration number, then search again.
3. 3Hold off on depositing until you have a clear answer. Legitimate firms are used to these questions and usually answer them plainly.

If the exchange becomes evasive, changes its story or pressures you to act quickly, that tells you what you need to know.

Beyond the License

A license is one part of due diligence. Also look at proof of reserves, security history, fee transparency, withdrawal reliability and customer support quality. Our due diligence checklist for centralized exchanges covers the full picture, and our exchanges directory lists platforms with key details. If you find a platform making false licensing claims, report it through our submission form and to the regulator concerned.

Bottom line

Check the license where it actually lives: on the regulator's own register. Identify the legal entity, find the right regulator, confirm status, permitted activities and approved domains, and look for warnings about clones. It takes a few minutes and filters out a large share of fake and poorly regulated platforms before you deposit a single coin.