Crypto Business Bank Account

It would be great to have shared the experience of specialists from international banks and international accounts regarding opening a bank account in Europe for companies operating in cryptocurrency transactions. If your company is engaged in active activity in the field of cryptocurrencies and plans on opening a bank account in Europe, then know that this may be quite a lengthy process. Despite the fact that with each passing year, the number of firms whose activities are directly or indirectly related to cryptocurrency is constantly growing, the problem of opening bank accounts persists. This problem is fraught not only in direct work with cryptocurrencies and digital assets but also in any traditional business that receives payment for its goods/services in cryptocurrency.

Why do most banks refuse to work with crypto-assets?

It has been evident in recent years that entrepreneurs who have decided to implement either cryptocurrency project face serious problems opening a bank account in European banks. Such a situation is explained, first and foremost, by the fact that at present many European countries have not yet finally regulated the cryptocurrencies at the legislative level. This, therefore, becomes the major reason why banking institutions will not co-operate with companies that are into cryptocurrency transactions since there is no clear-cut regulation approved by the regulator on how to control or curb cryptocurrency activities, and what class of assets/values the virtual currency belongs to. Generally, most banks and financial institutions classify the cryptocurrency business as a high-risk activity.

Although some banks work with businesses connected to cryptocurrency, they tend to select their clients by working only with easily understandable business models and well-established companies. Thus, opening an account for a cryptocurrency-related business will be even more difficult when it comes to really innovative business models, like mining, staking, investment portfolio management, or lending/credit for cryptocurrencies.

However, some progressive European countries have already embraced this technological advancement and brought in legislations based on which activities related to cryptocurrency are controlled by the State and declared legal. You can see below the updated list of the countries from Regulated United Europe banking experts.

How to Open an Account for a Cryptocurrency Company?

First, our company recommends choosing a European country with effective regulation of cryptocurrencies and choosing a cryptocurrency-friendly bank or financial institution in this country (payment service provider, electronic money institution etc.). What points should be taken into consideration at this stage:

• Does the bank allow receiving and sending money from/to cryptocurrency accounts?
• Does the bank allow using an account for the business of a cryptocurrency-related business?
• Can this European bank/financial institution receive and send assets to and from a crypto exchange?
• Does the bank service companies with similar businesses?
• How much does it cost for the bank to mention crypto in the payment description?

The application for a crypto account would be worth considering only in the case when you are absolutely sure that the European bank you have chosen works with your business model. It is also worthwhile to find out now whether the selected financial institution offers the full range of services needed, including:

• International SWIFT payments
• Debit cards
• Card issue or virtual IBAN
• Multicurrency
• Account opening and closing fees

Whereas the number of financial institutions serving cryptocurrency businesses is growing, not all of them provide a full suite of services a business requires. Many banks in Europe provide only a SEPA payment account, but a virtual currency company would want to open a crypto account and get a full package: SWIFT payments, multi-currency accounts, and payment cards. Save your time and get all the necessary banking services for cryptocurrency business with regulated United Europe offering Pre-approval service – a unique opportunity to get preliminary consent or refusal from carefully selected banks by our specialists to consider a full package of documents for opening an account for your cryptocurrency company.

Another responsible step is the correct approach to the application. In the case of filing an application for an account with a cryptocurrency company, all information must be provided in full: all corporate documents of the company, copies of the passport of beneficiaries, contracts with customers and suppliers, and a short description of the business model. If your business is regulated, you have to attach proof of a license. What people often don’t notice is the fact that the documents have to be submitted in a form acceptable to the country of registration of the financial institution. This, in essence, means that most documents have to be translated into English or the language of the European country where the bank is registered and regulated, and notarized and apostilled with an aim of providing proof that the documents are valid.

Nowadays, every company is obliged to have anti-money laundering procedures; thus, internal AML procedures, due diligence reports, and possible external audits should be identified. Planning to open an account for a cryptocurrency company in one of the European banks, note that due to the fact that cryptocurrencies are considered riskier assets, this consequently means the banks are required to conduct enhanced due diligence under anti-money laundering laws. It is, therefore, essential to ascertain the source of funds and wealth of the company and of its ultimate beneficial owners. Each and every document regarding the source of funds in respect of the company or its UBO shall be verified. Part of the EDD process also includes analysis on how the company is collecting and maintaining the information of the customer. Before opening an account for the activities of the company dealing in cryptocurrencies, the bank officials have to make sure such a company has developed processes to identify the risks associated with possible money laundering and such processes have been implemented pursuant to the anti-money laundering guidelines. So as not to repeat the procedure of preparing a full package of documents at an early stage, our company is offering you a pre-approval service. You can get preliminary consent from the selected European bank to open an account for your cryptocurrency company by providing only the initial package of documents, then you can prepare the missing documents beforehand, having obtained the consent of the bank.

Which European Countries are the Best for Opening an Account for a Cryptocurrency Company?

Jurisdictions that regulate cryptocurrency business and provide a legal basis for such a business include such countries as: Great Britain, Liechtenstein, Switzerland, Gibraltar, Germany, Netherlands, Lithuania, and the Czech Republic.

GREAT BRITAIN

Company registration for crypto activities in the UK is administered by the Financial Conduct Authority (FCA). The FCA has designed and instituted KYC, AML/CTF regulations and policies specific to crypto assets. In respect of the freedom given to them to promote innovation, the FCA has introduced requirements for Virtual Asset Service Providers, VASPs. Regarding opening a cryptocurrency account in the UK, there are some crypto-friendly banks in the country that allow their customers to use their own issued credit and debit cards to freely buy and sell cryptocurrencies, perform bank transfers to crypto exchanges, and withdraw assets gained from crypto investments.

GIBRALTAR

Such an entity as the state regulation of activities of cryptocurrency companies does exist in Gibraltar; an account can be opened in one of the financial institutions of this state. This country is included in the list of leaders in regulating cryptocurrencies not only in Europe but also in the whole world. Here, virtual currencies are not recognized as a means of payment, while their exchange is provided at the legislative level. The country is considered a low-tax jurisdiction, and hence capital gains or dividends after the registration of the cryptocompany in Gibraltar will not be taxed. You should also remember that local banks are very choosy about companies wanting to work with cryptocurrency, and only a few of them work with such clients. To incorporate a crypto bank in Gibraltar, you will be needed to show evidence that you have kept a local physical office and the company has local employees as well.

GERMANY

Cryptocurrencies in Germany are treated as financial instruments under local law. In July 2021, new licensing requirements for cryptocurrency companies in Germany were adopted, and under the new regulatory mode, cryptocurrency business in Germany is highly regulated and shall be carried on in compliance with the Anti-Money Laundering Law. This also enabled one to open a bank account for those companies that were involved in cryptocurrency transactions.

SWITZERLAND

Foreign investors intending to enter the European cryptocurrency market most often direct their attention at Switzerland. The country, namely its canton of Zug, is called the European crypto valley. Cryptocurrency regulation requirements in Switzerland are strict. Still, Swiss banks are quite cautious with the customers whose activities are somehow related to cryptocurrencies. Not many institutions in the country are ready to provide an opportunity to open an account for a cryptocompany: exceptions are Falcon Private Bank, which accepts cryptocurrency investments, Swissquote Bank and IG Bank, through which Bitcoin can be traded. Recently, the Swiss bank Hypothekarbank Lenzburg said it would let foreign investors open accounts to work with cryptocurrency. In all of them, applicants will be subject to a detailed KYC check. Those who intend to open their cryptocurrency account in Switzerland will need confirmation of an appointment of the resident director, the presence of the local office, and local staff.

MALTA

The Maltese government has established clear regulations and requirements for the regulation of cryptocurrencies in Malta. In particular, these rules have affected the regulation of cryptocurrencies and ICO, the certification of blockchain-based platforms, and the licensing of technology service providers. A special body to control digital innovation has also been created. Before the introduction of these rules and regulations, Maltese banks often refused to open an account for a crypto company. So, after the transformation of local legislation, opening an account on a crypto exchange in Malta seems possible but only in case a local company has been registered. Notably, Malta has become one of the first jurisdictions where cryptocurrency-related activities are fully regulated and have received a legitimate status.

LIECHTENSTEIN

Since 2018, Liechtenstein has been counted as a leading jurisdiction for registering crypto businesses in Europe. The government of this country has developed effective laws in encouraging foreign investment of crypto-companies to be able to compete with such states as Switzerland. Today, launching a crypto-startup in the country of Liechtenstein may be quite profitable for many foreign investors because the Fintech industry is developing quite rapidly there. With some banks in Liechtenstein, you can already open a cryptocurrency account, but it has to be put into consideration that every client is subject to a detailed check and considered on an individual basis according to the strict rules of the institutions.

LITHUANIA

Currently, Lithuania is turning into one of the most crypto-friendly and appealing jurisdictions in the European Union, where legal transactions with cryptocurrencies are possible and there are developed clear requirements regarding regulation of crypto-currency business by the Financial Crime Investigation Service. The Money Laundering Prevention Act regulates this very legal framework. In general, the Lithuanian government regulates cryptocurrencies within the Fifth EU Anti-Money Laundering Directive (AMLD 5). In early 2020, the Central Bank of Lithuania launched its first digital currency, LBCOIN. The country thereby became more open to cryptocurrency than ever before. More banks started offering crypto-accounts in Lithuania.

GEORGIA

Opening a crypto startup in Georgia is one of the options considered low-budget if we consider European countries. This state is included in the list of countries that are considered for registration of cryptocompanies in Europe. The government has come up with a favorable tax policy for such companies, among other things: sale/exchange of cryptocurrencies is not subject to VAT. There are several banks in this country that cooperate with crypto projects. However, before opening an account for crypto activity in Georgia, please note that cooperation of local banks with persons whose activities are related to virtual currency is limited only to the exchange, purchase, and sale of cryptocurrencies.

Another affordable option for owners of cryptocurrency companies is opening an account for crypto activities in a payment system. Each of the payment systems has, like any ordinary bank, a number of its own conditions and requirements, including the lists of jurisdictions with which it does not work. We can’t absolutely guarantee the opening of an account for crypto activities, but our specialists are ready to help in reducing the risks of failure to a minimum and will take care of all the organizational aspects of this process.

As we can see, though many countries are developing a clear regulatory framework for regulating cryptocurrencies, only a few banks are willing to work with such companies. Regulated United Europe specialists provide support in opening an account in European banks for cryptocurrency companies and will be happy to provide you with the full range of services you need.