Opening Business Accounts with Cryptocurrency (2024 Guide)

Opening a corporate banking account for cryptocurrency is now even more difficult than for personal use. Business with digital financial services is traditionally classified as high-risk, so banks, fearing sanctions from international financial regulators and the FATCA law, try not to have any business with companies conducting digital business.

The consequence of this is the critical difficulties that arise for businesses that need an account in crypto-currency. Alternative options – namely neobanks and payment systems – are not always applicable to the corporate segment, although if there is no choice at all, they can be considered.

But in any case, we have to admit that opening a bank account for crypto-currency is not an easy task. Therefore, an interested entrepreneur will definitely need the help of lawyers.

Our team of specialized professionals is ready to provide you with comprehensive advisory and practical assistance in this matter.

We will also help with opening a bank account in any jurisdiction and provide full support. Contact us now.

Can You Open a Business Account for Crypto-activity? Main Nuances and Purposes

Crypto-currency is based on the blockchain. It does not depend on central banks and government regulators; therefore, unlike euros, dollars and other currencies, it is decentralized and more “free”. The benefits of cryptocurrency include next-mentioned:

• possibility of quick transfer to other countries. Transactions in cryptocurrencies are faster than transactions between banking systems of different countries. One transfer can take a maximum of several hours, but not weeks, as is the case with banks.
• anonymity: any individual can make transactions without disclosing their personal data;
• less exposure to inflation. The very design of crypto-currencies suggests that their supply is limited and therefore they do not depreciate at the same rate as regular money;
• low commission: commission fees do not depend on the volume of crypto-currency that users transfer within the system. The commission was introduced only to ensure that a certain group of people process transactions and support the blockchain of the crypto-platforms;
• independence and lack of regulation in some government spaces.

In order to open an account for a business in crypto, you must first understand the following aspects.

1. Choosing a jurisdiction taking into account all existing circumstances.
2. Solution options for corporate banking accounts.
3. Comparison of the banking sector (without reference to specific financial institutions) in different cryptocurrency-friendly countries.
4. Possible additional steps depending on the specific bank.
5. Important aspects of running a crypto-business that are not directly related to opening an account in crypto-currency.

A corporate crypto-account in a correctly selected jurisdiction gives the following.

1. Increased level of security and safety.
2. Improved status in the eyes of clients and partners.
3. Reducing the level of risks for both the crypto-business itself and its clients, and overhead any related price.

An entrepreneur who has a crypto-account for his business project can offer clients and carry out the following.

1. Sending funds. The firm can send crypto-currencies to anyone on a global level.
2. Accepting payments. An organization with such an account can offer its customers various crypto-currencies as a payment method.
3. Storing funds as a deposit payment method. Many clients store their bitcoins and other crypto-currencies in their account or in private wallets. With the help of such a deposit, you can make payments for transactions, products or services in the future.
4. Money transaction. The company can send crypto-currency to this or that wallet or partner accounts at any time, easily and quickly.
5. Conversion. Converting crypto-currencies is very simple. The company can convert crypto-currencies between themselves, either in parts of the total amount or in whole.
6. Payments. Settlements with partners and clients can be carried out quickly and conveniently using digital assets.

Also Read: Why You Should Use Cryptocurrency in Online Games?

Business Banking Crypto-Account Requirements

Let’s consider the main regulatory parameters and rules regarding the procedure for opening such accounts. Sometimes it is possible to open a crypto-account for a business without a license. In general, the first requirement is that the company itself has the appropriate permit.

Some of the most respected and reliable are European ones, subject to regulations by EU Directives and have common features with each other. Financial institutions will also require a business-plan, all security policies completed and implemented, and the excellent reputation of key employees. 

In some cases, the condition for opening an account will be the need to make a deposit and maintain a minimum account balance. So, the basic list of regulatory parameters can be described as listed below, but they also vary depending on the selected banking institution.

1. Some institutions require that the jurisdiction in which the bank is registered must be the same as the country of registration of the legal entity.
2. A visit to a banking branch when opening a corporate crypto-account may be mandatory.
3. Local resident when opening a corporate account.
4. Initial deposit, minimum balance, minimum monthly balance in a certain amount established by the bank.
5. Providing the bank with the described list of permitted transactions.
6. Covering the general costs of opening a crypto-account.
7. Payment of commission for currency conversion.
8. An agreement with a banking institution regarding the possibility of transfers from/to any crypto-exchange, and taking into account existing restrictions and subtleties.
9. Drawing up an agreement on payment for services.
10. Availability of multi-currency banking accounts.
11. Concluding an agreement on the possible availability of e-banking.
12. Providing the banking facility with a reporting procedure for CRS/FATCA.

Also Read: The Possible Future Paths of Cryptocurrency

How to Open a crypto-Account for Business: Optimal Jurisdictions and Difficulties

Crypto-currencies were considered a risky form of payment, especially. There is a high risk of using illegal funds and laundering criminal proceeds. Banking institutions also fear insufficient regulation in this area.

However, at the moment, the regulatory framework is increasingly strong and reliable, and crypto-currencies are becoming popular and frequently used around the world.

In any case, in order to protect themselves, banks require a variety of proof of purity of intentions from companies, in particular, those listed below.

1. Possession of permission from a reputable jurisdiction.
2. Experience of owners, directors, specific professionals.
3. Reliable customer verification system and much more.

When choosing a jurisdiction, an offshore solution is suitable for an entrepreneur if the business has next-mentioned features:

• no processing history;
• more than 2% return of payments;
• organization works with adjustments where necessary;
• firm serves international clients.

The best banking institutions for corporate crypto-accounts are next-mentioned.

1. Switzerland.
2. Malta.
3. Gibraltar.
4. Estonia.
5. Lithuania.
6. Cyprus.

Offshore crypto-credit card processing allows merchants who would not normally be able to set up an account within their jurisdiction to take advantage of the less stringent standards offered by merchant account service providers overseas.

An entrepreneur can also buy a ready-made crypto bank account for business. However, such an optimal comprehensive solution must be selected taking into account all the operating features of the company that needs it.

Entrepreneurs can also open crypto-account online. With an e-banking account, your transactions can be made anytime and from anywhere, all you need is internet access. Moreover, new technologies offer the integration of additional banking options; crypto-companies can have flexible core banking systems, allowing them to include many other services in one click.

Traditional banks cannot offer, for example, AML/KYC or alternative payment methods. The legacy systems that traditional banks use cannot cope with new technologies and therefore cannot offer the latest automated services.

Opening a corporate crypto-account is quite difficult, but quite possible. The main thing is to work out all the details at the preliminary planning stage, build a business strategy and understand the immediate goals and objectives that you set for yourself.

Our specialists will help you with this. We will become your reliable allies on this path. With us, your commercial future will be completely secure.

Article’s author is Denys Chernyshov – founder and CEO of the globally-famous organization Eternity Law International.