Best jurisdiction to form P2P crypto exchange

[venturevis]

What are the best jurisdictions to form a P2P cryptocurrency exchange similar to localbitcoins, paxful.
We plan to accept customers domiciled in North America, Europe, Africa, Asia.

Owners are based in USA, & Singapore.

 

[icecold]

You want to look into Malta, Latvia and some of the other Baltic countries.

I'm not aware of Cyprus if that would be a good idea, they seem not to follow the future when it comes to crypto.

 

[CyprusLaw]

You want to look into Malta, Latvia and some of the other Baltic countries.

I'm not aware of Cyprus if that would be a good idea, they seem not to follow the future when it comes to crypto.

Why would you say that about Cyprus?
It is slowly becoming a crypto hub, with Revolut already getting registered as a crypto exchange, and a number of other big crypto exchanges such as FTX, Binance etc being in the process of getting registered.

 

[BA UK]

What are the best jurisdictions to form a P2P cryptocurrency exchange similar to localbitcoins, paxful.
We plan to accept customers domiciled in North America, Europe, Africa, Asia.

Owners are based in USA, & Singapore.

Good Afternoon,

I recommend UK.

British government wants the UK to be global hub for the cryptocurrency industry​

• introducing a ‘financial market infrastructure sandbox’ to enable firms to experiment and innovate,
• establishing a Cryptoasset Engagement Group to work more closely with the industry,
• exploring ways of enhancing the competitiveness of the UK tax system to encourage further development of the cryptoasset market,
• and working with the Royal Mint on a Non-Fungible Token (NFT) this summer as an emblem of the forward-looking approach the UK is determined to take.

All advantages to open on United Kingdom.

Have a nice day!

 

[venturevis]

Why would you say that about Cyprus?
It is slowly becoming a crypto hub, with Revolut already getting registered as a crypto exchange, and a number of other big crypto exchanges such as FTX, Binance etc being in the process of getting registered.

P2P exchange is different than a regular spot exchange in terms of legal. You are not a money transmitter as the crypto transaction is from user to user, the company never facilitates any cryptocurrency transaction as the user does.

 

[overnbeyond]

P2P exchange is different than a regular spot exchange in terms of legal. You are not a money transmitter as the crypto transaction is from user to user, the company never facilitates any cryptocurrency transaction as the user does.

Correct, you would need AML and KYC screening in place you should check out Bisq, great platform, decentralized, and open source, you could fork it! and no KYC but unfortunately low volume on the exchange.

 

[Don]

What are the best jurisdictions to form a P2P cryptocurrency exchange similar to localbitcoins, paxful.
We plan to accept customers domiciled in North America, Europe, Africa, Asia.

Owners are based in USA, & Singapore.

Do you mean a decentralized exchange? DAO?
Will you issue tokens as well?

 

[369]

since when is local bitcoins an exchange

 

[TheCryptoAnt]

What are the best jurisdictions to form a P2P cryptocurrency exchange similar to localbitcoins, paxful.
We plan to accept customers domiciled in North America, Europe, Africa, Asia.

Owners are based in USA, & Singapore.

Cayman probably

 

[venturevis]

No, peer to peer. A marketplace whereby a user can sell his bitcoins / fiat directly to another user, the platform will act as an escrow and place to connect the buyer & seller. There is many examples like paxful and localbitcoins, the compliance is not an issue as we never receive payment from customer, it is done peer to peer and the user is responsible for conducting business appropriately depending where he is domiciled. I am looking for a tax & crypto friendly jurisdiction, not sure how easy this will be with US shareholder in terms of circumventing tax, as it will be a CFC.

Do you mean a decentralized exchange? DAO?
Will you issue tokens as well?

Correct, you would need AML and KYC screening in place you should check out Bisq, great platform, decentralized, and open source, you could fork it! and no KYC but unfortunately low volume on the exchange.

We plan to have some sort of AML and KYC, users can still use the platform without any KYC but will be restricted with limits.

 

[JosephLL]

If a platform holds one key and decides upon a possible dispute hiw can it not be a money transmitter? Even if there is no dispute escrow releases money. In other words there is no such thing as p2p whenever there is externallity involved. In case of btc: other shitcoin or fiat these are all externalities.

 

[369]

localbitcoins is not p2p just for your info

 

[venturevis]

localbitcoins is not p2p just for your info

It very much is so, if you check the website it says it "Join the Most Trusted and Largest Peer-to-Peer Bitcoin Trading Platform"
in big text on the front page. Peer to peer as in users can exchange cryptos amongst eachother rather with the entity localbitcoins.

If a platform holds one key and decides upon a possible dispute hiw can it not be a money transmitter? Even if there is no dispute escrow releases money. In other words there is no such thing as p2p whenever there is externallity involved. In case of btc: other shitcoin or fiat these are all externalities.

I can see your point, P2P as in users can exchange crypto to fiat amongst each other without going through a centralized entity like Coinbase. People from countries like Iran, Russia, etc facing international sanctions may have trouble onboarding to any KYC crypto exchange. P2P allows for the trader to trade directly with vendors from around the globe where the only rules are the ones set by the traders themselves. They are responsible for conducting their due diligence, paying taxes, and compliance. As a result people from where ever, can purchase/offload the desired amount of crypto they like as long as the vendor in question agrees to trade with them. The P2P itself exchange simply provides a marketplace for traders and vendors alike to connect, and make trades safely with built in escrow.

 

[369]

It very much is so, if you check the website it says it "Join the Most Trusted and Largest Peer-to-Peer Bitcoin Trading Platform"
in big text on the front page. Peer to peer as in users can exchange cryptos amongst eachother rather with the entity localbitcoins.


I can see your point, P2P as in users can exchange crypto to fiat amongst each other without going through a centralized entity like Coinbase. People from countries like Iran, Russia, etc facing international sanctions may have trouble onboarding to any KYC crypto exchange. P2P allows for the trader to trade directly with vendors from around the globe where the only rules are the ones set by the traders themselves. They are responsible for conducting their due diligence, paying taxes, and compliance. As a result people from where ever, can purchase/offload the desired amount of crypto they like as long as the vendor in question agrees to trade with them. The P2P itself exchange simply provides a marketplace for traders and vendors alike to connect, and make trades safely with built in escrow.

i guess you have no clue what you are talking about.Just because it says so in the website doesn't mean its true.
When you sent btc to localbitcoins you send it to the wallet from localbitcoins and nowhere else.
You don't send it to the exchanger directly.
The exchanger is getting his BTC from localbitcoins when you approve it.
That is not p2p.

P2P allows for the trader to trade directly with vendors from around the globe where the only rules are the ones set by the traders themselves. They are responsible for conducting their due diligence, paying taxes, and compliance. As a result people from where ever, can purchase/offload the desired amount of crypto they like as long as the vendor in question agrees to trade with them. The P2P itself exchange simply provides a marketplace for traders and vendors alike to connect, and make trades safely with built in escrow.

What a bunch of nonsense you posted.You ever read the SEC rules or from singapore or china ?
Who is being made responsible even it really would be p2p ?

 

[venturevis]

i guess you have no clue what you are talking about.Just because it says so in the website doesn't mean its true.
When you sent btc to localbitcoins you send it to the wallet from localbitcoins and nowhere else.
You don't send it to the exchanger directly.
The exchanger is getting his BTC from localbitcoins when you approve it.
That is not p2p.



What a bunch of nonsense you posted.You ever read the SEC rules or from singapore or china ?
Who is being made responsible even it really would be p2p ?

Okay what else will I call this type of exchange? Hey i'm trying to start a marketplace where users can exchange crypto directly with eachother, no i'm going to say peer to peer exchange, that is the term. Binance has a platform built in called Binance P2P or binance peer to peer and it is the samething. I'm using P2P because it's what the industry calls it, maybe it's not entirely peer to peer but that is the term for it a peer to peer, user to user exchange. I'll continue to call it that, and not your nerd jargon.

i guess you have no clue what you are talking about.Just because it says so in the website doesn't mean its true.
When you sent btc to localbitcoins you send it to the wallet from localbitcoins and nowhere else.
You don't send it to the exchanger directly.
The exchanger is getting his BTC from localbitcoins when you approve it.
That is not p2p.



What a bunch of nonsense you posted.You ever read the SEC rules or from singapore or china ?
Who is being made responsible even it really would be p2p ?

Not nonsense, I implore you to do your own due diligence and come back to me. On ebay.com, if someone decides to sell fireworks which requires certain licenses / permits, does that mean ebay must apply for this license to sell fireworks because a user on their website is? No, even though ebay acts as a marketplace, and escrow, the seller of the firework is responsible for the fulfillment of the product and acquiring these licenses to sell. Check which licesnes paxful has, localbitcoins, localcoinswap, you will see, Bisq doesn't require kyc it's completely decentralized they haven't been shut down.

i guess you have no clue what you are talking about.Just because it says so in the website doesn't mean its true.
When you sent btc to localbitcoins you send it to the wallet from localbitcoins and nowhere else.
You don't send it to the exchanger directly.
The exchanger is getting his BTC from localbitcoins when you approve it.
That is not p2p.



What a bunch of nonsense you posted.You ever read the SEC rules or from singapore or china ?
Who is being made responsible even it really would be p2p ?

LocalBitcoins Trader Pleads Guilty to Money Transmitter Charge

A Michigan LocalBitcoins trader plead guilty last week to operating an unlicensed money services business.

www.coindesk.com

Read this, notice how localbitcoins was not culpable, rather the vendor faced punishment from the feds.

 

[369]

Okay what else will I call this type of exchange? Hey i'm trying to start a marketplace where users can exchange crypto directly with eachother, no i'm going to say peer to peer exchange, that is the term. Binance has a platform built in called Binance P2P or binance peer to peer and it is the samething. I'm using P2P because it's what the industry calls it, maybe it's not entirely peer to peer but that is the term for it a peer to peer, user to user exchange. I'll continue to call it that, and not your nerd jargon.


Not nonsense, I implore you to do your own due diligence and come back to me. On ebay.com, if someone decides to sell fireworks which requires certain licenses / permits, does that mean ebay must apply for this license to sell fireworks because a user on their website is? No, even though ebay acts as a marketplace, and escrow, the seller of the firework is responsible for the fulfillment of the product and acquiring these licenses to sell. Check which licesnes paxful has, localbitcoins, localcoinswap, you will see, Bisq doesn't require kyc it's completely decentralized they haven't been shut down.

LocalBitcoins Trader Pleads Guilty to Money Transmitter Charge

A Michigan LocalBitcoins trader plead guilty last week to operating an unlicensed money services business.

www.coindesk.com

Read this, notice how localbitcoins was not culpable, rather the vendor faced punishment from the feds.

you post a lot of bulls**t without having the simplest know how.
Your p2p claim is simply funny.
Is binance p2p (just a name) a p2p exchange or do they act as custodian where you have no keys to the orginal crypto ?
You even know the idea behind p2p ?
Industry standard because some centralized garbage exchanges call their product p2p as marketing gag doesn't make it a p2p exchange.

Secondly your ebay example nonsense.
I recommend stop bullshitting these kind of nonsense garbage and start reading in real financial/crypto acts who is being hold responsible in real p2p platforms.
Instead of posting past garbage maybe start reading new rules.

SEC stated clearly in a p2p exchange ,people will be hold accountable who make these transactions possible like ,node provider,programer etc .
Just because they didn't used it in the past where there was no CBDC's doesn't mean they won't use it now or in the future.
If you want to open your door to get massiv lawsuits from SEC and co just keep going with your nonsense explanation.
There are enough people in jail from crypto who knew everything better without reading a single regulation

Read this, notice how localbitcoins was not culpable, rather the vendor faced punishment from the feds.

You compare 2017 where there were NO regulations with today ?
Good luck not going into jail

 

[venturevis]

you post a lot of bulls**t without having the simplest know how.
Your p2p claim is simply funny.
Is binance p2p (just a name) a p2p exchange or do they act as custodian where you have no keys to the orginal crypto ?
You even know the idea behind p2p ?
Industry standard because some centralized garbage exchanges call their product p2p as marketing gag doesn't make it a p2p exchange.

Secondly your ebay example nonsense.
I recommend stop bullshitting these kind of nonsense garbage and start reading in real financial/crypto acts who is being hold responsible in real p2p platforms.
Instead of posting past garbage maybe start reading new rules.

SEC stated clearly in a p2p exchange ,people will be hold accountable who make these transactions possible like ,node provider,programer etc .
Just because they didn't used it in the past where there was no CBDC's doesn't mean they won't use it now or in the future.
If you want to open your door to get massiv lawsuits from SEC and co just keep going with your nonsense explanation.
There are enough people in jail from crypto who knew everything better without reading a single regulation


You compare 2017 where there were NO regulations with today ?
Good luck not going into jail

Okay no point to argue this, my platform will implement KYC/AML procedures anyway, without KYC can transact only smaller than 10k. This is how 90% of platform are, I will let you think you are right. You seem to have some pent up aggression, looking to offload on this forum. I like to argue and learn, it's not about who's right or wrong. I can find you articles from 2022, please go do your DD. I'm going to leave it at that.

you post a lot of bulls**t without having the simplest know how.
Your p2p claim is simply funny.
Is binance p2p (just a name) a p2p exchange or do they act as custodian where you have no keys to the orginal crypto ?
You even know the idea behind p2p ?
Industry standard because some centralized garbage exchanges call their product p2p as marketing gag doesn't make it a p2p exchange.

Secondly your ebay example nonsense.
I recommend stop bullshitting these kind of nonsense garbage and start reading in real financial/crypto acts who is being hold responsible in real p2p platforms.
Instead of posting past garbage maybe start reading new rules.

SEC stated clearly in a p2p exchange ,people will be hold accountable who make these transactions possible like ,node provider,programer etc .
Just because they didn't used it in the past where there was no CBDC's doesn't mean they won't use it now or in the future.
If you want to open your door to get massiv lawsuits from SEC and co just keep going with your nonsense explanation.
There are enough people in jail from crypto who knew everything better without reading a single regulation


You compare 2017 where there were NO regulations with today ?
Good luck not going into jail

Also the term you maybe are looking for is DEX, decentralized exchanges, that facilitate trading orders through smart contracts.

 

[369]

Okay no point to argue this, my platform will implement KYC/AML procedures anyway, without KYC can transact only smaller than 10k. This is how 90% of platform are, I will let you think you are right. You seem to have some pent up aggression, looking to offload on this forum. I like to argue and learn, it's not about who's right or wrong. I can find you articles from 2022, please go do your DD. I'm going to leave it at that.


Also the term you maybe are looking for is DEX, decentralized exchanges, that facilitate trading orders through smart contracts.

I run the first and biggest decentralized p2p exchange from 2014 to 2020......i coworked with law companies which create proposals for SEC so i guess i do not need any DD anymore on that topic.But if you keep thinking your way i don't predict a good future for you.
without kyc smaller than 10k yeah right LOL .keep living in your ilusional world.
I guess thats why so many people are looking for expensive solutions to cash out crypto legaly because cashing out under $10k/day would be way to difficult for them

 

[venturevis]

I run the first and biggest decentralized p2p exchange from 2014 to 2020......i coworked with law companies which create proposals for SEC so i guess i do not need any DD anymore on that topic.But if you keep thinking your way i don't predict a good future for you.
without kyc smaller than 10k yeah right LOL .keep living in your ilusional world.
I guess thats why so many people are looking for expensive solutions to cash out crypto legaly because cashing out under $10k/day would be way to difficult for them

There's CEX's that allow for no KYC but put restrictions on how much volume you can trade. Please create a paxful account, do not enable ID verification and you will see tier 1 allows for you to trade under a certain amount of volume. There's a myriad of exchanges that run this way, Bisq, Localmonero, Localcoinswap, Localbitcoins. I will follow their practices and I've already consulted with lawyers in the fintech sector. Go to those sites please I implore you, and you will see how they are operated.

I run the first and biggest decentralized p2p exchange from 2014 to 2020......i coworked with law companies which create proposals for SEC so i guess i do not need any DD anymore on that topic.But if you keep thinking your way i don't predict a good future for you.
without kyc smaller than 10k yeah right LOL .keep living in your ilusional world.
I guess thats why so many people are looking for expensive solutions to cash out crypto legaly because cashing out under $10k/day would be way to difficult for them

Most vendors will have terms set on the site, and vet the traders they trade with i.e asking for photo ID and matching name on ID with name on the bank they received the transfer from..

 

[369]

There's CEX's that allow for no KYC but put restrictions on how much volume you can trade. Please create a paxful account, do not enable ID verification and you will see tier 1 allows for you to trade under a certain amount of volume. There's a myriad of exchanges that run this way, Bisq, Localmonero, Localcoinswap, Localbitcoins. I will follow their practices and I've already consulted with lawyers in the fintech sector. Go to those sites please I implore you, and you will see how they are operated.


Most vendors will have terms set on the site, and vet the traders they trade with i.e asking for photo ID and matching name on ID with name on the bank they received the transfer from..

you jump from topic to topic.
You just show you have no clue what you are talking about.
You posted you wanted to create a fiat on and off ramp.
Now you compare it with pure crypto trading.
You clearly lack the smallest knowledge about that topic