which EMI is available for an Estonia licensed crypto wallet as an currency exchange account

[joeytamlovebusiness]

Hello guys, new to here, after a little research , found out that the biggest obstacle to run your own crypto wallet is to find a bank account for it！so let discuss here how to solve it!

 

[JohnLocke]

You keep using the term crypto wallet. If it is similar to say blockchain.com you won't need a license, so what exactly is it you want to setup?

 

[tux]

The crypto wallet is for example electrum, wasabi. These contains your personal adresses that people can transfer bitcoins to.

The next step if you wanna cash out (or load up your bitcoins) is to find a good exchange. Since you mention bank account I assume youre looking for exchanges with fiat ramps. There is many of those for example bitstamp, coinbase, kraken which all are centralized. There is also good amount of decentralized exchanges (which is prefered if you dont wanna go through a bunch of kyc/aml) examples of these are bisq and localbitcoins (requires some kyc). Here you will middleland the crypto while its on sale, or if youre buying.

Now you want to find a place to land the fiat at, and this is where it get very personal. Many emi or banks dont really wanna deal with crypto so you gotto find one that suits you and your concept.

Just to clarify the lingo.

 

[FinTech Avenger]

You keep using the term crypto wallet. If it is similar to say blockchain.com you won't need a license, so what exactly is it you want to setup?

Technically, there are two types of so-called Estonian cryptocurrency licenses:
- Providing services of exchanging a virtual currency against a fiat currency
- Providing a virtual currency wallet service

Most operators possess both of them though. If Blockchain.com was incorporated in Estonia, IMO, it would have been obliged to obtain the second license, as it falls under scope of relevant national legislation.

Now, getting back to the question raised by TS, there is no simple, one-fits-everyone, solution if we speak frankly. There are banks and EMIs out there that accept crypto-related businesses, but as usual nowadays, it would depend on:
- What exact business do you intend to carry on through your licensed entity (e.g. do you plan to setup some sort of crypto buy-sell facility, trading venue, or conduct ICO/STO/IEO)
- What measures would you be able to implement (not only on the template of KYC policy you've got from your CSP, but practically) to mitigate fraud, sanctions, terrorism-related and other ML risks. That is a very important point to consider, especially given 5th MLD entry in force as of January.
- Who's running the company and what's their profile (citizenship, residence, experience, presence or absence of adverse media info);
- The most important point of consideration is: would the business you plan to bring in to the FI be worth the risks dealing with cryptos? Would you be able to make some sort of security deposit (10-50-500 k EUR) and commit to a certain monthly turnover that would show that you are serious about that business and it is not all for laundering some petty cash from phony ICO?

So, now you have a clearer picture of what needs to be demonstrated in order to secure credible banking relationships.

Some EMIs that can consider crypto-related projects are:
- Lithuanian EMIs, such as Pervesk etc.
- Wirex (according to the latest reports, has major banking problems)
- Sterling Payments (technically not EMI, various credibility reports)

I wouldn't name any banks or some other EMIs on a public forum for obvious reasons.