Cryptocurrency business in Europe

How to open a cryptocurrency business in Europe?

There are a lot of persons tending to try themselves in conducting crypto-business. There are no serious difficulties with registration of a company. It is more difficult to build financial flows for a successful business. As a rule, funds are raised in a form of ICO or as a payment for products. Financial transactions are made with participation of a bank.

It is good if there is no need to convert cryptocurrency into fiat money for successful operation. In most cases, a company needs real money to settle accounts with counterparties.

Cryptocurrency exchange presents considerable difficulties. You can not come to a cryptocurrency exchange and make a conversion. A bank will impose a ban on conducting such transaction. If above transaction is successful, financial institution will certainly be interested in the origin of funds after a certain period of time and make a request. Such interest threatens serious trouble.

Main fears of banks

It does not matter what you are really going to be engaged in. Bankers suspect terrorists and drug dealers in those who are related to cryptocurrency business.

Banks have fears that:

• Companies under sanctions, terrorist organizations may be your clients or investors;
• A company will be engaged in money laundering simultaneously with the declared activities.

Cooperation with enterprises engaged in illegal activities threatens with millions of fines, loss of reputation, and bank management can be brought to criminal responsibility. The best solution to prevent unnecessary problems is a refusal for a potential client.

Circumstances influencing a decision

Probability of obtaining a positive decision will arise if:

1. An EU citizen will act as an official beneficial owner of profit (beneficiary). There is more loyalty to EU citizens, when opening a personal account for trading. The same is for corporate accounts. Beneficiary of a company with EU citizenship has a much higher chance.
2. Your business is simple and straightforward. Probability of opening an account is increasing. Nobody will try to understand and deal with something unclear.
3. There are no bans on a legislative level, restrictions of a regulator. Internal policy of banks exerts a great influence. Practice shows that a reason for refusal is often refer to banking policy.

Conclusion: it is difficult to open an account for a cryptocurrency business, but it is possible. Be able to be interesting. For example, a solid profit of your company will affect an income of a bank, which is of special interest to financiers.

Where is it possible to open an account?

Most often, Ukrainians use EU companies for business.

Banks of the EU countries allowing a possibility of cooperation with Ukrainian and Russian businessmen:

• Switzerland. The country is assisting the development of cryptocurrency projects. However, financiers are reluctant to cooperate in the absence of support fr om the regulator and local organizations.
• Lithuania. Some Lithuanian banks show interest in cryptocurrency projects. They express a desire to cooperate. The government treats these kinds of activities neutrally.
• Germany. German banks of new generation (neobanks) do not prevent opening of personal accounts for trading. It is easy to open a corporate account for conducting small and medium business there. Serious difficulty is a communication, as technical support is carried out in German. If you do not have problems with knowledge of German language, you need to open an account in Germany.
• Bulgaria, Slovenia, Poland. Individual small financial institutions are ready for joint cooperation. The level of their services is low.

Let's repeat: percentage of probability that an account will be opened for you in one of the banks of the listed jurisdictions is considerably small. Most start-ups get rejected. But with proper preparation, it is possible to organize a full-fledged cryptocurrency business in one of the countries of Europe.

How to open an account?

The following tips will help you achieve what you want.

1. Business should be clear and understandable. Create and present an understandable simple business model to a bank. Clearly demonstrate wh ere the funds will come from, how they will be spent.
2. Give guarantees, clearly observe them. A bank will believe in the absence of interconnection or ties with terrorists, if you provide a full list of outgoing transactions, recommendations of your partners and counterparties with a good reputation.
3. Choose only reliable jurisdiction for registration of a company. A bank should have confidence that it is supported be a tight regulator that helps to monitor a business.
4. Apply to small banks. Serious financial institutions value their reputation. Therefore, there is no guarantee that they will be interested in your project. Small organizations will take risks more easily.
5. Make a bank interested in your project. Ongoing payments being made through a bank are of particular interest for this bank. A large permanent balance can also cause favor of bankers.

Having obtained a consent of financiers, you can consider running your business as evolving and perspective one.