Registration of a cryptobank. Moving forward with the times.
A cryptocurrency bank is a financial institution that performs operations with a cryptocurrency, and not with fiat money. Clients of the cryptocurrency bank are persons who use cryptocurrency and block technologies in their operations.
Why do we need a bank working with cryptocurrency?
Cryptocurrency bank provides services of funds storage, crediting, bank transfer, exchange of currencies, acquiring for legal entities, that is services provided by classic banks, but with the use of tokens. In this case, it is possible to use cash back and loyalty programs for clients.
In the process of banking, virtual bank cards, mobile applications and crypto-cash ATMs and terminals are used.
Pre-conditions for creating cryptocurrency banks
The blockchain technology develops rapidly, the frequency of bitcoin usage in trade operations is continuously growing. There are many projects which are created for making favorable conditions for the development of blockchain technology and cryptocurrency.
The world’s largest banks are working to create their own cryptocurrency. Cash is no longer in trend, bitcoin is gradually becoming a universal option for conducting transactions and in the near future it will be used at the same conditions as fiat money. Wherein, due to the absence of a clear legal regulation, it is rather problematic to open an account in a traditional bankfor companies that are directly connected with cryptocurrency activities.
How do I register a bank that can accept cryptocurrency?
Before registering a cryptobank, you must select the most appropriate jurisdiction. After incorporating the company, you must obtain an appropriate license. It should be taken into account that cryptocurrency activity does not have a single definition and is regulated according to its nature and direction. Usually there are: cryptocurrency transfers, the exchange of cryptocurrencies for fiat money, cryptocurrency lending, and investment services.
Each activity direction requires a special permit (license) and the adaptation of activities under the relevant legislation. The most popular are the Electronic Money Institution (EMI) license, the Money Transmission License (license for money transfers), the License for activities to provide alternative methods of payment.
For each type of license there are special requirements. For example, to obtain an EMI license, you must havequalified personnel, a detailed business plan, and authorized capital of a certain amount.
What opportunities does the EMI license give?
The EMI license allows you to issue your own virtual currency, which can be used outside of the licensee’s system, create your own electronic wallet and a card payment system, conduct transactions, sell and buy your own virtual currency from the customer-holders.
In what jurisdiction is it better to register a cryptocurrency bank?
It can be said that there is no universal jurisdiction for opening a bank operating with a cryptocurrency. The choice of jurisdiction is influenced by a number of factors: the geographical segment of potential consumers, the loyalty of legislation, the residence of board members, the presence of dominant services (bank cryptocurrency transfers, the exchange of cryptocurrency for fiat money, crediting). It is possible to obtain an EMI license in Europe or Belize, a license for money transfers in Hong Kong, exchange of cryptocurrency in Estonia. In general, the most favorable to the cryptocurrency are Estonia, Hong Kong, Singapore, the United States, the UAE and other jurisdictions. Also, you should not forget about offshore banks.
Registration of a cryptocurrency bank is not an easy task. However, with the help of a team of SBSB professionals, you will easily achieve this goal. We offer the following services for establishing a bank with cryptocurrency: the choice of jurisdiction for a bank with a crypto currency, assistance in registering a bank accepting a crypto currency, obtaining a license for crypto-currency activities, maintaining at all subsequent stages.
For over five years we have been advising our clients in the field of corporate law, international tax planning, finance, international licensing and integrated business support in more than 40 countries. We will be glad to help you.