Offshore company to trade derivatives on Binance

[TommyR]

Hi All!

There are a few discussions here about opening a company to trade crypto but they are quite old so I decided to ask again.

I'm in Australia and the regulator here has prohibited registered crypto exchanges such as Binance to offer derivatives trading to retail clients. Binance decided to stop offering it to all their Australian customers, both retail and institutional. I know such ban is also in place in Germany and other EU countries. There is now a push from the UK regulator to limit retail derivatives trading there too.

I was wondering if anyone here recently opened an offshore company, ideally outside of EU and later created company account and completed KYC with Binance?

I'm not hiding income and will be paying taxes here in Australia, I just need to be able to trade futures on Binance.

Thanks,
Tom

 

[EliasIT]

I'm not hiding income and will be paying taxes here in Australia, I just need to be able to trade futures on Binance.

In that case I would setup a company in the UK, Dubai or Cyprus - all will work with what you are looking to do.

 

[clemens]

+1 for UAE - you won't get less troubles.

 

[TommyR]

In that case I would setup a company in the UK, Dubai or Cyprus - all will work with what you are looking to do.

Thanks!
As far as I know there is a push to ban derivatives trading in UK too so it could be all for nothing. Cyprus may follow if, after Germany, they will do EU-wide ban. Dubai looks good, would you be able to advise on cost, and most importantly, is it possible Binance will still consider it an Australian entity and refuse derivatives trading?

 

[JohnLocke]

I would say Dubai is the proper place for you, @Fred or @Gediminas may be able to help you and will probably be in here shortly if I know them right

 

[kilor]

I would say Dubai is the proper place for you, @Fred or @Gediminas ma

both have seller threads around here OP - you may contact them.

 

[CyprusLaw]

Thanks!
As far as I know there is a push to ban derivatives trading in UK too so it could be all for nothing. Cyprus may follow if, after Germany, they will do EU-wide ban. Dubai looks good, would you be able to advise on cost, and most importantly, is it possible Binance will still consider it an Australian entity and refuse derivatives trading?

I would not expect Cyprus to implement such ban.

 

[CaptK]

UAE is ok for now but we still don’t know how far they will go on Crypto licensing. For a set up like yourselves I don’t think that there would be any issue. They are more pushing for regulation with coins (ICO) and projects (DAO and IDO) exchanges (CEX and DEX) and investment pooled funds. Someone trading their own money in a company for now is not a problem.

 

[TommyR]

Hi All!

Thanks a lot for all your answers! So far it's Cyprus vs UEA. Am I correct assuming I'll have to pay taxes in Cyprus and won't in UEA? Of course I'll have to pay in Australia where I live. I just don't want to pay twice - for example, if I make $100k, I'll have to pay $20k in tax in Cyprus and then 30k on 80k in Australia bringing total tax to 50% (just rough example without real figures).

Also, is there any risk Binance will still treat this offshore entity as an Australian entity because the owner (me) is an Australian and block it from trading derivatives?

 

[zzzzzz]

@TommyR what is the difference between derivatives on Binance vs those on CME (crypto futures and options)?

 

[TommyR]

@TommyR what is the difference between derivatives on Binance vs those on CME (crypto futures and options)?

Just had a look at CME - they only offer Bitcoin and Etherium. Binance offers around 100 futures. Also I'm sure Binance has better commission (as low as 0.02%) and liquidity.

 

[CaptK]

You are better off UAE, but ensure to have all the substance in place before you apply for the Binance UAE.

 

[setec]

you can look into https://cryptorg.net/ this is a pass through broker using the Binance Link program discussed here: What Is Binance Link Program | Binance Support. I havent used it myself but I registered an account. It looks like no KYC needed unless you need more than 15k WD a day. Verification is allowed for Aus persons but not USA. There are some other brokers like MEXC global or bitmart that looks also like binance front ends.