A licenced Crypto Exchange looking for more bank accounts/Merchant Accounts

Hi everyone,

our crypto exchange is registered and licenced in Estonia, presently we have two bank accounts one in Germany and other in malta,
both of them supporting only in EUR and no merchant accounts.

we want to operate in other countries as well ( example india-- its banned in india ) , it is really difficult for us without a merchant account and multiple currencies.
please help me out here picking a bank /emi which would support crypto firm and fast payments back to the europe.

thanks in advance
Cryptobabaji
 

Martin Everson

HNWI Offshore Consultant
Business Angel
Mentor Group
You can try speaking to onpex they support up to 25 currencies and provide services to wirexapp for example. Not sure how viable your license is for them to offer you multi currency swift services however.

 

Gediminas

Offshore Tax Advisory
Business Angel
Mentor Group
Commercial Service
Try contacting Pervesk as well for their white label solution.
 
@martin thanks alot looks really promising ,do you know if they are lenient ? we have all the necessary papers ofcourse .

@pervesk thanks for your suggestion , last time i approched emi for a white label solution they asked me 40 k just to get started (paymix) , any clue about these guys ?
 

Sols

Trusted Member
Business Angel
Even if you find a payment processor in Europe, you will have nearly 100% declines from India. Capital controls in India make it hard to convert INR into anything else. If you want to offer services to Indians, you need to start by solving the challenge of converting INR to other currencies.
 

Gediminas

Offshore Tax Advisory
Business Angel
Mentor Group
Commercial Service
@pervesk thanks for your suggestion , last time i approched emi for a white label solution they asked me 40 k just to get started (paymix) , any clue about these guys ?
Maybe a white label solution is not needed for you. I guess you are looking for one more bank account, right? Just try contacting them and explain your situation. ;)
 

Sols

Trusted Member
Business Angel
@Sols thanks for the suggestion,you raised a important converting is easy here but question is before hitting the bank account or after?
The problem stars with the customer. RBI has strict currency conversion and currency export rules, which makes it very difficult for Indians to engage in financial services abroad. There are a lot of back channels, usually through corrupt/desperate money remittance companies which are authorised to convert and export INR.

If you have a customer signing up on your website and using their card to buy crypto, the following typically happens:
  1. The processor doesn't support INR so you process the transaction in EUR or other currency. The customer's bank rejects the transaction, due to currency conversion limitations.
  2. If the processor is able to process INR (rare, but possible), the customer's bank will see that the acquiring bank (your processor) and the merchant (you) are located outside of India, which again triggers capital control limitation.
  3. If the transaction is authorised and if the processor is able to process the transaction in INR, they can't settle to you in INR so you receive EUR or other currency at a very unfavourable exchange rate.
It's basically the same for bank transfers, too. India has a fantastic domestic banking network but as soon as you're leaving India, it gets very, very difficult.

If you want to break through in India, you need to have a domestic solution for converting INR to currencies that can be transferred freely.

There are some payment processors who use dozens to hundreds of money mules' personal accounts and personal currency conversion allowances to move funds around, but it's a cat-and-mouse game where you have to fight to stay ahead of banks and RBI shutting down accounts.
 

Martin Everson

HNWI Offshore Consultant
Business Angel
Mentor Group
@martin thanks alot looks really promising ,do you know if they are lenient ? we have all the necessary papers ofcourse .
I don't know but give them a try they already offering services to a crypto company and maybe they do to others. Stay away from asking for a USD account but ask for other currencies and you might stand a better chance.
 
The problem stars with the customer. RBI has strict currency conversion and currency export rules, which makes it very difficult for Indians to engage in financial services abroad. There are a lot of back channels, usually through corrupt/desperate money remittance companies which are authorised to convert and export INR.

If you have a customer signing up on your website and using their card to buy crypto, the following typically happens:
  1. The processor doesn't support INR so you process the transaction in EUR or other currency. The customer's bank rejects the transaction, due to currency conversion limitations.
  2. If the processor is able to process INR (rare, but possible), the customer's bank will see that the acquiring bank (your processor) and the merchant (you) are located outside of India, which again triggers capital control limitation.
  3. If the transaction is authorised and if the processor is able to process the transaction in INR, they can't settle to you in INR so you receive EUR or other currency at a very unfavourable exchange rate.
It's basically the same for bank transfers, too. India has a fantastic domestic banking network but as soon as you're leaving India, it gets very, very difficult.

If you want to break through in India, you need to have a domestic solution for converting INR to currencies that can be transferred freely.

There are some payment processors who use dozens to hundreds of money mules' personal accounts and personal currency conversion allowances to move funds around, but it's a cat-and-mouse game where you have to fight to stay ahead of banks and RBI shutting down accounts.
wow, looks like you know the system better than most folks in India do ) ,

summing it up which means step1, i have to sell btc in inr for cash or accounts,
step2 .convert inr cash to another currency cash ( have contacts )
step 3. bring the cash to account ( this would be really difficult considering europe have strict rules )
step 4. account to exchange

any tips on this one?
 

Martin Everson

HNWI Offshore Consultant
Business Angel
Mentor Group
summing it up which means step1, i have to sell btc in inr for cash or accounts,
step2 .convert inr cash to another currency cash ( have contacts )
step 3. bring the cash to account ( this would be really difficult considering europe have strict rules )
step 4. account to exchange

any tips on this one?
Have you tried using companies like dlocal to collect payments in INR. Not sure they work with crypto though.

https://dlocal.com/countries/#apac
 
You can try speaking to onpex they support up to 25 currencies and provide services to wirexapp for example. Not sure how viable your license is for them to offer you multi currency swift services however.

do you have your buddies there ?)
Thank you for your interest in ONPEX!

Unfortunately, we cannot help you at the moment due to high demand of our services and solutions. We are currently focusing on serving regulated institutions only, who are regulated by a Financial Regulatory Authority. We won't be able to consider Estonian crypto license in this category.

We are upgrading our internal resources to be able to serve non-regulated customers and also customers that are not based in Europe, we expect to have enough capacity end of Q2/20.

Thank you for your kind understanding.
 

Gediminas

Offshore Tax Advisory
Business Angel
Mentor Group
Commercial Service
@Cryptobabaji send me an email please with a detailed description of your business, I can look at your case.
 
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