Anyone used a nominee for a crypto exchange account (such as Binance)?

[DrunkFlamingo]

When using an offshore structure to trade crypto, has anyone ever used a nominee to open an exchange account?

Crypto exchanges (such as Binance, FTX etx) ask for a lot of information to open a corporate account, including to KYC directors and all beneficial owners. If you used nominees for this service it would keep your credentials out of KYC preserving privacy, but it would also pass on all account privileges to the nominee. Theoretically the nominee would have power to block you from the exchange account and withdraw all your funds to a crypto wallet, gone forever.

It seems the only way to stop this is to go through KYC yourself, and be listed as the person who controls the account. But then you give up privacy.

Anyone had any experience with this? Is it even possible to use a nominee service to open a crypto exchange account?

~ Thanks

 

[BoomBoom]

This sounds more like you want someone to open an account and hand over it to you for use. Obviously this is against the ToS of all exchanges. This is in essence no different than fake account. Aside from the legal issues, it is not wise to let other people power over your crypto.

Crypto excahnges, inc. binance, can ask you for a SoF and other documents, do you think the nominee will lie to the exchange in this case? probably not...

 

[DrunkFlamingo]

Interestingly you can use nominee services for bank accounts, which is perfectly acceptable. So naturally I thought this could extended to crypto exchanges. Opening a corporate account under a company name with several people listed with authority to trade isn't illegal per se.

Are there any ways to maintain privacy doing this? Or is it just not gonna happen these days.

 

[GlobalConsult]

Interestingly you can use nominee services for bank accounts, which is perfectly acceptable.

Not correct!

Even though only the director / shareholder are a nominee, but the attorney in fact and much more important to the bank is ALWAYS UBO and both are disclosed. And as you written for "corporate".

But you can NOT open a private account with nominee - so the same too exchanger!

 

[BoomBoom]

When people talk about nominee they refer to to situations when the shareholder of a company is the nominee and you and the nominee have some kind of agreement signed giving you all the rights and profits from the company. This can hide the true owner of the company from the public registrar of companies so no 3rd party can know that you own the company.
This is legal in some jurisdictions and some cases.
BUT even in these situations the bank will still ask for the UBO and you will have to tell the bank about yourself.

Your best solution is to just accept that KYC is the new normal.

 

[Sols]

When you open a business bank account for a company with nominee directors and nominee shareholders, your identity is also disclosed as the UBO of the company. While most nominee directors will insist that they be the sole signatories on the bank account, some let the UBO have partial or complete access to the account.

The same goes for crypto exchange accounts.

 

[DrunkFlamingo]

Ok, thanks all for your input. It seems I had the wrong idea of exactly what info banks require and the extent of what nominees can do, or more specifically, can't do. The devil always is in the details.

This can hide the true owner of the company from the public registrar of companies so no 3rd party can know that you own the company.

So, you can prevent your details appearing on the public registrar, provided it is legal in the jurisdiction. But if your identity is revealed when dealing with the bank or the crypto exchange, surely this means you can never be truly private.

Out of interest does anyone know how easy it might be for a 3rd party to then find this information about you being listed as UBO through the bank or crypto exchange?

And assuming CRS and AML is almost everywhere, then how likely is this to be reported that you're listed as UBO for again, either bank account or crypto exchange?

Your best solution is to just accept that KYC is the new normal.

Yes, I agree, it seems KYC is the new normal.

 

[Sols]

So, you can prevent your details appearing on the public registrar, provided it is legal in the jurisdiction. But if your identity is revealed when dealing with the bank or the crypto exchange, surely this means you can never be truly private.

Banking secrecy does still exist in that private individuals cannot obtain information from the bank. But secrecy before governments and law enforcement is gone.

Out of interest does anyone know how easy it might be for a 3rd party to then find this information about you being listed as UBO through the bank or crypto exchange?

Only through data leaks or (other) criminal means, or certain court proceedings. You can't sue a bank for information about a customer, but you can sue or have criminal charges filed against a person and in that process have them disclose their bank accounts. This is extremely dependent on situation and applicable law.

And assuming CRS and AML is almost everywhere, then how likely is this to be reported that you're listed as UBO for again, either bank account or crypto exchange?

Banks report. That's guaranteed, unless you bank in one of the very few remaining non-CRS countries (most of which you wouldn't want to put money in anyway).

CRS does not yet apply to crypto exchanges, and it's even unclear how well CRS is being enforced by EMIs and other non-bank deposit taking institutions. EMIs should report and many do, but I don't think they have reached the same degree of reporting as banks.

 

[DrunkFlamingo]

unless you bank in one of the very few remaining non-CRS countries (most of which you wouldn't want to put money in anyway).

Yeah, not sure I'd want to be depositing any meaningful amount of funds in Kazakhstan etc.

CRS does not yet apply to crypto exchanges, and it's even unclear how well CRS is being enforced by EMIs and other non-bank deposit taking institutions. EMIs should report and many do, but I don't think they have reached the same degree of reporting as banks.

I imagine this is simply a matter of time.

 

[Risehigh]

Banking secrecy does still exist in that private individuals cannot obtain information from the bank. But secrecy before governments and law enforcement is gone.


Only through data leaks or (other) criminal means, or certain court proceedings. You can't sue a bank for information about a customer, but you can sue or have criminal charges filed against a person and in that process have them disclose their bank accounts. This is extremely dependent on situation and applicable law.


Banks report. That's guaranteed, unless you bank in one of the very few remaining non-CRS countries (most of which you wouldn't want to put money in anyway).

CRS does not yet apply to crypto exchanges, and it's even unclear how well CRS is being enforced by EMIs and other non-bank deposit taking institutions. EMIs should report and many do, but I don't think they have reached the same degree of reporting as banks.

I would rly love to have some feedback from some crypto exchange insiders/affiliates on the crs of exchanges- most interesting topic imo

 

[spacely]

it all depends. Of course, if you go out nowadays and clearly state that the person is a nominee, in most cases you will be refused an account opening.
If you can find the right person who can just incorporate a company on themselves and let you work - this is an option. There are different schemes some service providers use.
This person can just be asked to sign what is needed and complete verifications when needed, but all accesses to the corporate accounts and even personal ones will be with you only and your name legally is not displayed anywhere thus the board member, shareholder and the UBO is a different person.

 

[DrunkFlamingo]

I would rly love to have some feedback from some crypto exchange insiders/affiliates on the crs of exchanges- most interesting topic imo

Same here. I have read the OECD wants to change CRS rules to include crypto exchanges fairly soon though. This was stated in 2021. If anyone else has experience would love to hear about it.

it all depends. Of course, if you go out nowadays and clearly state that the person is a nominee, in most cases you will be refused an account opening.
If you can find the right person who can just incorporate a company on themselves and let you work - this is an option. There are different schemes some service providers use.
This person can just be asked to sign what is needed and complete verifications when needed, but all accesses to the corporate accounts and even personal ones will be with you only and your name legally is not displayed anywhere thus the board member, shareholder and the UBO is a different person.

I suppose there are other services out there which could do this. But it brings me back to the original problem - if someone else opens the account in their name with their documents, then at any time they could block you from the account and steal all the funds.

Honestly the best solution I can think of is to just move to a zero tax country and open the account in your own name. At least you don't have to report to anyone, so you get a bit of privacy there. Privacy is becoming a scarce thing these days.

 

[spacely]

I suppose there are other services out there which could do this. But it brings me back to the original problem - if someone else opens the account in their name with their documents, then at any time they could block you from the account and steal all the funds.

There is always such a problem when you deal with nominees. You either know who you are dealing with or trust the provider of the nominee. Usually, it is working fine with my clients at least.

Honestly the best solution I can think of is to just move to a zero tax country and open the account in your own name. At least you don't have to report to anyone, so you get a bit of privacy there. Privacy is becoming a scarce thing these days.

exactly, I guess this is the smartest decision you can make after spending some time in the forum

 

[miniflowtrader]

it all depends. Of course, if you go out nowadays and clearly state that the person is a nominee, in most cases you will be refused an account opening.
If you can find the right person who can just incorporate a company on themselves and let you work - this is an option. There are different schemes some service providers use.
This person can just be asked to sign what is needed and complete verifications when needed, but all accesses to the corporate accounts and even personal ones will be with you only and your name legally is not displayed anywhere thus the board member, shareholder and the UBO is a different person.

Which service providers?

 

[fredouille1973]

When using an offshore structure to trade crypto, has anyone ever used a nominee to open an exchange account?

Crypto exchanges (such as Binance, FTX etx) ask for a lot of information to open a corporate account, including to KYC directors and all beneficial owners. If you used nominees for this service it would keep your credentials out of KYC preserving privacy, but it would also pass on all account privileges to the nominee. Theoretically the nominee would have power to block you from the exchange account and withdraw all your funds to a crypto wallet, gone forever.

It seems the only way to stop this is to go through KYC yourself, and be listed as the person who controls the account. But then you give up privacy.

Anyone had any experience with this? Is it even possible to use a nominee service to open a crypto exchange account?

~ Thanks

ftx us with a us company don't ask much really.. with Eu company on ftx.com also not a very big deal

 

[miniflowtrader]

ftx us with a us company don't ask much really.. with Eu company on ftx.com also not a very big deal

Yah but what do you do if you are in US and want to be on FTX.COM, not FTX.US.

 

[spacely]

Yah but what do you do if you are in US and want to be on FTX.COM, not FTX.US.

u can use nominee services, resident of EU should solve this

 

[miniflowtrader]

u can use nominee services, resident of EU should solve this

Is nominee service the same as - someone else creates an account under their name/business and hands over the credentials or something else? Who is the UBO with a nominee service?