Gradually, not only technology fans and random people are beginning to invest in cryptocurrency, but also so-called institutional investors: banks, large funds and investors. And if so, then confidence in the asset class is growing.
Despite this, setting up a business around cryptocurrency, be it an exchange or gambling using Ethereum, is still not easy. Businessmen face two main challenges: obtaining a license and opening + maintaining an account.
It is quite easy to obtain a license now, including in the EU: Estonia, Malta, Lithuania and other countries offer licenses of different levels at prices ranging from a couple of thousand to 350,000 euros.
The score is much more complicated. Let's figure out where you can open an account, and where you can't exactly.
Taking into account the feedback from readers, we will give specific solutions that you can use in your practice right now.
Why is it difficult to open an account for cryptocurrencies?
Cryptocurrencies are considered a risky business activity. There is a high risk of using illegal funds, money laundering, financing of terrorism.
Also, banks and other financial institutions fear the lack of regulation in this area in general.
For this reason, in order to protect themselves, banks require companies to provide a variety of proofs of the purity of intentions:
- Licensed from a respected jurisdiction;
- Experience of owners, directors, specific professionals;
- Reliable customer verification system;
- And much more.
And often this is still not enough.
Where exactly they won't open an account for cryptocurrency projects
Most conventional banks refuse to handle cryptocurrencies. Coming to a popular retail bank and saying that you are planning to do business with cryptocurrencies means immediately being outside the door.
For example, in the EU, it is almost impossible to open an account for cryptocurrencies in a regular bank. In rare cases, we can talk about large clients and special conditions. But it is difficult for a startup to open an account in Europe.
Sometimes it comes to the comical when different restrictions are added. For example, in Estonia you can get a crypto license and also enjoy zero taxation until you distribute the profits. However, you will not be able to open a bank account in the country until there is a specific connection with the local market. And this applies not only to cryptocurrencies, but also to other types of business.
Payment systems also rarely work with cryptocurrencies. Still, the risk is high and not everyone is ready to conduct thorough checks of new companies. Therefore, it is easier to deny service.
Where will they open an account, but with different conditions
Where to look for solutions that are ready to work with cryptocurrencies? Let's divide them into several groups:
- Banks in a country where legislation has been worked out and many other cryptocurrency projects are working. For example, in the United States, it is easier and more realistic to open an account for cryptocurrencies, at least because many cryptocurrency exchanges already work there - it is advisable to have an American company;
- : , . : , , , . , .
- : . , ( ) . .
- : , , ( – ), . .
In general, if you need an account quickly enough, then it is better to start by opening it in a payment system, starting a business. Then you can already contact ordinary banks (if they are suitable for you in terms of geography) and open additional accounts in different payment systems for insurance.
Still, we remember that cryptocurrency is a risky business. And even having an account does not mean that it will remain forever. Above, we have already mentioned a bank in the Bahamas, which allowed opening accounts for cryptocurrency transactions, including large ones, but now it has closed this opportunity.
What are the requirements for a cryptocurrency business
Yes, sometimes it is possible to open a business account without a license. For example, in the USA, by opening a company in Colorado, you can conduct some operations without a license, as well as open an account in some payments.
However, in general, the first requirement is a license. Some of the most respected are European. They are regulated by EU Directives and have some common features. The broadest license is EMI (Electronic Money Institution) and the statutory fund of the company in this case must be from 350,000 euros.
There are simpler licenses, and the price for them can be from 10 thousand euros and more.
Also, expect financial institutions to require a business plan, all procedures are in place (they are usually required when obtaining a license), an excellent reputation of key employees.
Be sure to study the ownership structure.
In some cases, a condition for opening an account will be the need to make a deposit and maintain a minimum balance on the account.
Where to open an account for cryptocurrency projects
IMPORTANT: the data are given at the moment. If something has changed - write, we will take into account.
Bilderlings
British payment system, which is actively used in international business.
Among the advantages:
- Accepted by companies that work with cryptocurrencies;
- Open a multicurrency account in 34 currencies, support conversion;
- Not only the account is immediately available, but also the acceptance of card payments online;
- The application for opening an account is submitted remotely;
- Excellent reputation of jurisdiction - Great Britain;
- An account is opened for both EU residents and non-residents.
Calls:
- Services for non-residents are more expensive;
- Accepts cryptocurrency projects only with a European license.
Sterling
Opening a bank account in Hong Kong is very difficult (time consuming and expensive), but solutions for a wide range of clients are gradually emerging.
The peculiarity of this payment system is that it works with clients of different risk levels, including high risk ones, which include cryptocurrencies.
Benefits:
- Open accounts for risky clients;
- Companies can be of different forms: LLC, LP, LLP, corporation;
- The owners of the companies can be citizens of the CIS;
- The application for opening an account is submitted remotely;
- The application is reviewed quickly.
Calls:
- For risky clients, checks are longer, more expensive;
- The risk of failure is still there;
- It is advisable to have a license.
Migom Bank
Modern neobank registered in Dominica. Opens accounts remotely, offers a quick procedure through its own compliance department in Europe. It is part of an international holding.
Considers companies that deal with cryptocurrencies.
Benefits:
- The application for opening an account is submitted remotely;
- The account opens relatively quickly;
- This is a bank, not a payment system;
- Unlimited cryptocurrency trading volume;
- A wide network of correspondent accounts for quick transfers in SEPA and SWIFT;
Calls:
- High demand from customers and delays in the consideration of applications;
- Dominica is offshore, for some companies this will be an additional test;
- Risky businesses sometimes find it difficult to translate quickly.
KoalaPays
A Czech payment system that offers e-commerce payment solutions, as they say, on a turnkey basis.
Benefits:
- Works only with companies - no personal accounts;
- Transfers are carried out through SEPA, SWIFT, Faster Payments;
- An account is opened in the main currency, and then accounts can be opened in 20 additional currencies;
- It is possible to immediately connect processing and accept card payments (solution for e-commerce).
Calls:
- I am ready to work with risky clients only after being presented by professionals;
- The costs of a risky business are higher than other levels of risk.
Other solutions
There are also other solutions, including those in large banks. However, this is the case when we are asked not to expand on this possibility. We offer these solutions only on an individual basis. Such payment systems and banks have higher requirements for documents, deposits and minimum balances. Such solutions are not suitable for startups, but for more or less established businesses.
Which of these solutions should you choose? It depends on the place of registration of the company, on the location of clients and contractors with partners. Also on what turnovers you have and what expenses you are willing to incur in connection with servicing in a particular system.
Remember that cryptocurrencies are considered a risky activity today, which means that the attitude towards them is biased and maintenance is more expensive.
If you have any questions, we will be happy to help you figure it out.
We will also be grateful if you share your solutions (banks, payment systems) in which you managed to successfully open an account for a cryptocurrency project.