How to open an account for a cryptocurrency company?
First of all, our company recommends choosing a European country with effective cryptocurrency regulation and selecting a cryptocurrency-friendly bank or financial institution (payment service provider, electronic money institution, etc.) in that country. What factors should be considered at this stage:
Does the bank allow receiving and sending funds between cryptocurrency accounts?
Does the bank allow the account to be used for cryptocurrency-related business?
Is this European bank/financial institution able to accept and send assets to a cryptocurrency exchange?
Does the bank serve companies with similar business models?
What are the fees for mentioning cryptocurrency in a payment instruction?
Only if you are sure that the European bank you choose will work with your business model should you consider applying for a cryptocurrency account. It is very important to already understand whether the chosen financial institution offers all the services you need, including:
International SWIFT payments
Debit Card
Card issuance or virtual IBAN
Multi-Currency
Account opening and closing fees
Although the number of financial institutions serving cryptocurrency companies is increasing, not all of them offer the full range of services that companies need. Many European banks only offer SEPA (Single Euro Payments Area) payment accounts, while virtual currency companies often want to open cryptocurrency accounts and get the full suite of services: SWIFT payments, multi-currency accounts and payment cards. In order to save our clients’ time and obtain all necessary banking services for their cryptocurrency business, we offer a Pre-Approval Service, which is a unique opportunity to obtain in advance a preliminary bank’s consent or rejection, with all the necessary documents, to consider opening an account for your cryptocurrency company, through a bank carefully selected for you by our experts.
Another responsible step is to treat the application correctly. When applying to open an account for a cryptocurrency company, you must provide all the necessary information: all corporate documents of the company, copies of the passports of the beneficiaries, contracts with customers and suppliers, and a brief description of the business model. If your business is regulated, you need to attach proof of the license. People often overlook the fact that documents must be submitted in a form acceptable to the country where the financial institution is registered. This means that many documents must be translated into English or the language of the country where the bank is registered and regulated, as well as notarized and apostilled to make them valid documents.
Today, every company must also have an AML procedure, therefore, internal AML procedures, due diligence reports and possible external audits must be specified. When planning to open an account at a European bank for a company engaged in cryptocurrency activities, please note that since cryptocurrencies are considered higher risk assets, this means that banks need to perform enhanced due diligence (EDD) under AML laws. The basic requirement is to understand the company's sources of funds and wealth and its ultimate beneficial owners (UBOs).
All documents related to the company's source of funds or its UBO must be verified. Part of the EDD process also includes analyzing how the company collects and manages customer data. Before opening an account for a company engaged in cryptocurrency activities, it is important that bank officials ensure that the company has developed processes for identifying potential money laundering risks and that these processes have been properly implemented in accordance with the provisions of the AML guidelines. In order to avoid repeating the procedure of preparing all documents at an early stage, our company provides you with a pre-approval service. You can obtain the preliminary consent of the selected European bank to open an account for your cryptocurrency company by providing a preliminary document package, and then you can prepare the missing documents in advance and obtain the bank's consent.
Which European countries are best for opening an account for a cryptocurrency company?
Jurisdictions that regulate cryptocurrency businesses and provide a legal basis for such businesses include: the United Kingdom, Liechtenstein, Switzerland, Gibraltar, Germany, the Netherlands, Lithuania, and the Czech Republic.
UK
In the UK, the registration of companies involved in cryptocurrency activities is managed by the Financial Conduct Authority (FCA). The FCA has developed and implemented KYC, AML/CTF regulations and policies specifically for cryptocurrency assets. The FCA has established requirements for Virtual Asset Service Providers (VASPs) to promote innovation freely. As for opening a cryptocurrency account in the UK, there are a number of crypto-friendly banks in the country that allow customers to freely buy and sell cryptocurrencies, transfer funds to cryptocurrency exchanges, and withdraw assets from cryptocurrency investments using the credit and debit cards they issue.
GIBRALTAR
In Gibraltar, the activities of cryptocurrency companies are regulated at the national level, and it is possible to open an account in one of Gibraltar's financial institutions. This country is considered one of the leaders in cryptocurrency regulation in Europe and the world. Although cryptocurrencies are not recognized as a legal means of payment here, the exchange of virtual currencies is regulated at the legislative level. The country is considered a low-tax jurisdiction, therefore, after registering a crypto company in Gibraltar, capital gains or dividends will not be taxed. You should keep in mind that local banks are quite picky about companies that want to work with cryptocurrencies, and only a few work with this type of clients. To open a bank account for cryptocurrencies in Gibraltar, you will need to confirm that you have a local physical office and that the company employs local employees.
Germany
Under local law, Germany considers cryptocurrencies as financial instruments. In July 2021, Germany established new licensing requirements for cryptocurrency companies, and under the new regulatory model, cryptocurrency businesses in Germany are strictly regulated and must comply with anti-money laundering laws. Now, companies engaged in cryptocurrency transactions can open bank accounts.
Switzerland
Foreign investors looking to enter the European cryptocurrency market often focus on Switzerland. The country, and especially its canton of Zug, is known as the Crypto Valley of Europe. Switzerland has strict regulatory requirements for cryptocurrencies. But Swiss banks remain quite cautious about clients related to cryptocurrencies. There are not many institutions in the country that offer crypto companies the opportunity to open accounts. The exceptions are Falcon Private Bank, which accepts cryptocurrency investments, and Swissquote Bank and IG Bank, through which Bitcoin can be traded. In addition, recently, Swiss bank Hypothekarbank Lenzburg (Hypi) announced that it will offer foreign investors the opportunity to open cryptocurrency accounts. In all these institutions, applicants will undergo strict KYC checks. Those who plan to open a cryptocurrency account in Switzerland need to confirm the appointment of a resident director, a local office, and local employees.
Malta
The Maltese government has established clear rules and requirements for cryptocurrency regulation. In particular, these rules affect the regulation of cryptocurrencies and ICOs, the certification of blockchain-based platforms, and the licensing of technology service providers. A special agency has also been created to control digital innovation. Before the introduction of these rules and regulations, banks in Malta often refused to open accounts for crypto companies. After the changes in local legislation, it seems that it is possible to open accounts on cryptocurrency exchanges in Malta, but only if a local company is registered. It is worth noting that Malta has become one of the first jurisdictions where cryptocurrency-related activities are fully regulated and legalized.
Liechtenstein
Since 2018, Liechtenstein has been considered one of the leading jurisdictions in Europe for registering crypto businesses. The government of this country has put in place effective laws to encourage foreign investors in crypto companies in the country, competing with countries such as Switzerland. Today, launching a crypto startup in Liechtenstein is a lucrative option for many foreign investors, as the fintech industry is developing quite rapidly. You can open a cryptocurrency account in several banks in Liechtenstein. But it must be taken into account that each client is thoroughly vetted and considered individually according to the strict regulations of the institutions.
Lithuania
Currently, Lithuania is becoming one of the friendliest and most attractive cryptocurrency jurisdictions in the European Union, legally conducting cryptocurrency transactions and having established clear requirements for the Financial Crime Investigation Service (FCIS) to regulate cryptocurrency businesses. The legal framework is provided by the Anti-Money Laundering Prevention Law. The government regulates cryptocurrencies in Lithuania in accordance with the Fifth EU Anti-Money Laundering Directive (AMLD 5). The Bank of Lithuania launched its first digital currency, LBCOIN, in early 2020. As a result, the country is more cryptocurrency-friendly than ever before, and more and more banks are offering cryptocurrency accounts in Lithuania.
Georgia
Launching a crypto startup in Georgia is one of the less expensive solutions among European countries. The country is included in the list of countries in Europe to register crypto companies. The government has developed good tax policies for these companies; for one, the sale/trading of cryptocurrencies is not subject to VAT. There are many banks in the country that cooperate with crypto projects. But before starting crypto activities in Georgia, be aware that cooperation of local banks with people whose activities are related to virtual currencies is limited to trading, buying and selling cryptocurrencies.
For the owners of cryptocurrency companies, opening an account with a payment system is another affordable option. Each payment system has a set of individual conditions and requirements, including a list of jurisdictions that do not cooperate with it. We cannot absolutely guarantee the opening of an account for cryptocurrency activities, but our experts are ready to help minimize the risk of failure and will handle all organizational aspects of this process.
As we have seen, although many countries are developing clear regulatory frameworks for cryptocurrencies, only a few banks are willing to work with such companies. We are supported by experts at to help cryptocurrency companies open accounts in European banks and are happy to provide you with the full range of services you need.
