Hello, I am currently a Canadian resident and citizen. My business is classified as an MSB, I provide crypto exchanges to people in foreign countries. I can run my business from anywhere in the world as long as I have an internet connection. My business runs on anonymity, registering as an MSB would force me to KYC my clients, I cannot do this as it would kill my entire business. I am looking for a place to relocate and form my business elsewhere offshore. I am able to move there and set up my company there. My requirements are preferably low tax, and not needing to register as an MSB to that country.
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Money Service Business moving Offshore
- Thread starter sterhe
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Unless you are like 100s of millions rich, no, you are operating in grey/black market area of the law, the US and EU ran all over the world bullying everyone in the 80s-00s into doing the KYC who handles money and does MSB from banks to the people sending $500 to their aunt in Mexico at Western Union. Its why you have to show an ID to send $600 to someone in Cambodia. If you are running a MSB in Canada, and you don't do KYC, it is actually illegal. It was why that scammer who ran the exchange Quadriga was having to use a bunch of ratholes and criminals to launder his money. It never work, the banks froze his funds as a suspect money launder, and he slipped through cracks and had to sue TD bank to release like $30 million of client funds which he later stole.
You have no clue what you are doing, and I don't mean it in an insulting way. The foreign clients you have are all in countries where MSB need licenses and kyc requirements to avoid being hit with money laundering charges for the eventual criminals who will pour into your exchange.
You have no clue what you are doing, and I don't mean it in an insulting way. The foreign clients you have are all in countries where MSB need licenses and kyc requirements to avoid being hit with money laundering charges for the eventual criminals who will pour into your exchange.
it really doesn't matter where on earth you live. Uncle SAM and all his brothers and sisters will come after you. KYC and MONEY is inseparable in 2020 and forth.
If you don't do proper DD and request KYC from your customers and something goes wrong you will be punished and your customer will laugh while they move to another idiot.
You may have luck with some of the Narcos in Mexico or Somalia to hide there, but other then that, forget.
This is no laughing matter running an MSB with no license. That's insanity in fact. Like has been said if uncle sam is affected by one bad transaction your life is over. You will be given lottery number years in US jail. I get shivers even thinking about such MSB activity and potential repercussions without at least even filtering out US clients for example.
https://www.crowdfundinsider.com/20...ange-operator-detained-for-extradition-to-us/
https://www.crowdfundinsider.com/20...ange-operator-detained-for-extradition-to-us/
I don't allow US clients, my clients are strictly in Africa. There is no where I can register my business where I wouldn't have to KYC my clients/register as an MSB? I also don't deal in fiat.
No, you can't offer financial services legally without performing KYC on the customers. What decade do you think it is?
Being crypto-only might let you avail of some legal gaps or loopholes in terrible and/or underdeveloped jurisdictions, but that'd only be due to a (temporary) oversight.
You might be OK now, but that will not last...
What about this as a strategy:
Set up a foundation somewhere relatively anonymous and secure, but do NOT run anything through it yet.
Then actually relocate to where your customers are, there are huge opportunities in cryptos in Africa for sure!
Build a network by carefully introducing yourself. Get people on the board of the foundation that can protect you locally, maybe even some with a good name in the country where you left.
Then set up a local business that follows the local KYC rules, where you eventually migrate your revenue generating business to.
If/when the inevitable happens your the "social entrepreneur helping people make it in Africa" for starters, then you've also got people that can vouch for you if anyone should try follow up further.
And even then, you'll have to start doing real KYC as soon as possible... Cryptos will be divided into a regulated sphere and a remaining, free sphere of "emancipated money" - this sphere will become increasingly harder to stay in, but it will also be strong for years to come.
But not in the West in any meaningful way... For real freedom there are very few localities left, and you'd have to rely on weak, local regulations + contacts locally to even remain in the game.
What about this as a strategy:
Set up a foundation somewhere relatively anonymous and secure, but do NOT run anything through it yet.
Then actually relocate to where your customers are, there are huge opportunities in cryptos in Africa for sure!
Build a network by carefully introducing yourself. Get people on the board of the foundation that can protect you locally, maybe even some with a good name in the country where you left.
Then set up a local business that follows the local KYC rules, where you eventually migrate your revenue generating business to.
If/when the inevitable happens your the "social entrepreneur helping people make it in Africa" for starters, then you've also got people that can vouch for you if anyone should try follow up further.
And even then, you'll have to start doing real KYC as soon as possible... Cryptos will be divided into a regulated sphere and a remaining, free sphere of "emancipated money" - this sphere will become increasingly harder to stay in, but it will also be strong for years to come.
But not in the West in any meaningful way... For real freedom there are very few localities left, and you'd have to rely on weak, local regulations + contacts locally to even remain in the game.
The problem with that approach is that if you ever get big enough to matter, local regulators where the customers are based are going to start issuing warnings unless you get a local license. You have to be licensed and regulated where your customers are located.
You can build the world's best crypto exchange in Rwanda all you want, but as soon as you start getting significant traction in places like UK, US, EU, and so on, they will start closing down your fiat on/off ramps and issue warnings to the market. Your brand name will be tarnished. Criminal investigations might end up piercing your foundation/trust. Those are meant to keep you safe from illegitimate claims and maybe save some tax here and there, not law enforcement on a money laundering rampage.
Sure, local registration would be necessary - thats where the networking comes in...
To get onto anything close to safe would both take a LOT of work AND to comply with regulations, but if done wisely one might get away with far more flexible ones
To get onto anything close to safe would both take a LOT of work AND to comply with regulations, but if done wisely one might get away with far more flexible ones
How can you prove this without KYC?
You said......
Bottom line you need KYC. Don't wait to get picked up by law enforcement.
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