Where to incorporate?

[wexport]

Hello ,

I want to start one business where peoples can buy crypto instantly with bank card/ sepa transfer.
The ideea is the following: non-custodial instant cryptocurrency exchange , we won’t keep users crypto funds in our wallet.

Client will enter on website and will input desired amount of crypto which want to purchase , select payment method , and input his own wallet address.

When his payment is cleared ( he will receive his crypto ) on the specified wallet.

Could you please advise me where it will be easier to incorporate for this kind of business?
I know Estonia and another countries from Europe offer license for crypto exchange, I just wonder if there are any other possibilities.

Thanks

 

[Martin Everson]

Depends what card processor you intend to use. They will have a lot of say over what countries they will deal with. So speak to simplex for example and ask them what countries are on their white list for crypto as they do a lot of the card processing for exchanges.

 

[wexport]

Depends what card processor you intend to use. They will have a lot of say over what countries they will deal with. So speak to simplex for example and ask them what countries are on their white list for crypto as they do a lot of the card processing for exchanges.

Thank you. I will contact them.

Do you know if it will be ok to incorporate in some country in Europe where crypto is not yet regulated and it won’t be necessary license for this kind of service ?

 

[sonato]

So speak to simplex for example and ask them what countries are on their white list for crypto as

nice suggestion didn't know them.

 

[JohnLocke]

It looks like they are processing for all the big names in the crypto scene. I wonder what they did to fight fraud.

 

[wexport]

It looks like they are processing for all the big names in the crypto scene. I wonder what they did to fight fraud.

Yes , I also purchased from one exchange which used them 2 years ago.
Actually after you make a payment , they will hold it and do a kyc on you. ( double check you made transaction ).

Where it will be easier to setup this kind of business ? I won’t mind even if is in Europe.

 

[Saho]

It looks like they are processing for all the big names in the crypto scene. I wonder what they did to fight fraud.

They're asking for selfie and pretty much everything: What is the verification process?

Nothing advanced. Just a lot of work for them to check.

 

[CaptK]

Thank you. I will contact them.

Do you know if it will be ok to incorporate in some country in Europe where crypto is not yet regulated and it won’t be necessary license for this kind of service ?

It would be good to know what countries that is possible in.

 

[wexport]

Changelly is a similar service with what we want to do.

I saw that they process credit cards through simplex ,wyre , moonpay, coinify.

Processing payment I see is not an issue even with EU or HK company.

I am just thinking in which country is better to start , afterwards when business will have a lot of turnover we may think of option of purchasing a license.

But basically we don’t keep users wallets... is more like a intermediation service.

 

[Spinat]

But basically we don’t keep users wallets... is more like a intermediation service.

Most countries and islands will require a license for such activity. You want to start your business where most privacy is granted but still accepted by payment processing companies like simplex.

Once you have grown your business you may be able to buy the license.

Once issue that I may see is that the payment processors will refuse to work with you if a license is required but you don't have one. Better is to start finding out with the payment processors.

 

[Sols]

If you plan to process cards properly for crypto, your processor is required to register your business with the card schemes. In this process, you need to show that you have the necessary licenses and, sometimes, you will also be asked to provide a legal opinion from a reputable law office in each country you plan to offer your services. There are a lot of variations for how these regulations are implemented (and some processor which don't follow them at all, at significant risk), but unless you have some sort of license, you will be severely limited in your ability to process card payments.

 

[wexport]

I will wait for their answers.


I was just looking at countries in Europe for example where crypto is not regulated yet.
Or it will be better HK setup?

 

[VESTANON]

Any Country With enough wriggle room,to enable a start up like yours navigate as you gain traction. Licensing should be a factor to consider or adopt going forward.

 

[Sols]

Incorporating where crypto isn't regulated doesn't help you in any way when Visa and Mastercard demand to see your license and/or legal opinions from reputable law offices where your customers are located. In some cases, you can leverage your processor's legal opinions for this but they in turn will normally require that you have a license.

You can really only avoid that issue by using processors that hide the true nature of your transactions (risky, costly - get a payments expert on board to help you) or not accept card payments.

 

[wexport]

Incorporating where crypto isn't regulated doesn't help you in any way when Visa and Mastercard demand to see your license and/or legal opinions from reputable law offices where your customers are located. In some cases, you can leverage your processor's legal opinions for this but they in turn will normally require that you have a license.

You can really only avoid that issue by using processors that hide the true nature of your transactions (risky, costly - get a payments expert on board to help you) or not accept card payments.

I am still waiting replies from card processors.
And if we will use SEPA payment method ?

There may be a work around till we expand ?

 

[jscargo]

I am not sure if this is a financially viable idea. Apart from licensing and getting a card processor, you will have two huge problems for your business:

- The biggest exchanges have never been so big, and never been so competitive. They have virtually unlimited amount of money to outbid one another in CPC and CPM campaigns.
- DEX's have never been so big. Uniswap, dYdX, Curve, Balancer.

Apart from getting the necessary licenses and potentially a card processor, I would strongly advice to research and find a neglected country in terms of exchanges so you will have a chance to compete with the other exchanges.