Eternity Law International — News — BANK ACCOUNT FOR ICO

BANK ACCOUNT FOR ICO

Published:
July 31, 2018

By the number of users of Bitcoin Ukraine is in the TOP-10 countries of the world, despite this, to establish a company for the development of crypto business and properly build financial flows is quite difficult, since the legal status of electronic currency has not yet been determined.

The only document on the basis of which Bitcoin is officially regulated is the official statement of the NBU made in 2014.

It contains an explanation of transactions with digital currencies and made a definition in which the cryptocurrency is a money surrogate that does not have real security and can not be considered as a means of payment.

Along with this, the document does not explicitly mention the ban on the use of cryptocurrency, since it is not an official commodity. It is subject to the standard rules of taxation.

Practical experience shows that the country’s banks track the movement of customer funds on bank cards, and when trying to exchange bitcoin for a freely convertible currency, users face serious problems.

In such cases, consultancy and legal support is sought from Eternity Law International.

WHY ARE  BANKS AFRAID TO WORK WITH CRYPTOCURRENCIES?

The relationship between the banks of the country and bitcoin is ambiguous, since there is no official opinion. Every Sales Manager sees in the client who applied to the bank for opening an account for conducting a cryptocurrency business of a potential fraudster.

Compliance-control officers consider the owners of digital money and the source of their origin, as a well-developed shadow scheme of enrichment.

The opinion of the minority is unequivocal and predictable, regardless of how the necessary amount was collected: as a stabilization fund accumulated within the ICO for charitable purposes or as a result of the general investment of active users, as seed money for a mining farm.

In operations with the cryptocurrency banks see the risk:

  • insufficiently mature instrument of economic development;
  • investors and clients of companies are considered to be persons engaged in illegitimate activities;
  • the declared activity is a screen for money laundering.

Caring about the reputation, banks are consciously avoiding cooperation with such customers, it is easier for them politely to refuse to open an account.

WHAT FACTORS ARE INFLUENCING TO THE BANK’S SOLUTION?

Despite the fact that cryptocurrency is actively used, it is not easy to get a positive answer regarding account opening. Everything depends on the profitability and value of the proposal, and the burden of responsibility lies fully on the shoulders of clients.

In order to get a positive decision to open an account, you need to consider such factors:

  • state restrictions, orientation and internal policy of the bank;
  • citizenship of the beneficiary – beneficiary with EU citizenship, it is much easier to receive a positive response from the bank in opening a corporate account, this rule applies to personal accounts for trading;
  • The banker should understand what the essence of the business is, if the client presents an incomprehensible project, no one will understand its meaning.

In other words, a stable income with minimal risks for banks has always been, is and will be the most important problem. So, in order for you to open an account, you must provide real guarantees of profitability.

WHICH JURISDICTIONS ARE OPENING ACCOUNTS?

Users and businesspersons are guided by EU jurisdictions in which banks allow the possibility of opening personal accounts for beneficiaries with Ukrainian citizenship:

  1. Poland – small banks tend to find a niche in the foreign exchange market of digital technologies, open merchant accounts and accept payments in bitcoins;
  2. Lithuania – Lithuanian regulator took the position of observer. However, some banks are ready for cooperation and are positive about the development of the cryptocurrency business;
  3. Germany – in one of the banks offer the opening of merchant accounts, individuals’ accounts for trading, with the knowledge of the state language required, because the support service is exclusively in German;
  4. Switzerland – the government supports the development of technology blockbuster and digital economy, this jurisdiction is known as the “cryptocurrency valley”, but banks will not cooperate unless they see support from local organizations and the regulator;
  5. Liechtenstein – several banks of jurisdiction open accounts for cryptocurrency projects in an individual order;
  6. Slovenia, Bulgaria – you can open an account only in small banks, in this jurisdiction as an alternative to traditional currencies, they work more likely from despair, and customers do not expect high level of service;
  7. Serbia – one of the banks accepts cryptocurrency projects on an individual basis;
  8. Montenegro – several small banks are considering opening accounts for cryptocurrency projects;
  9. Macedonia – one of the banks is considering the opening of accounts for cryptocurrency projects;
  10. Offshore banks – Curaçao, Gibraltar, Mauritius are considering cryptocurrency projects individually.

One hundred percent guarantee is that banks in these jurisdictions will not open an account, but such a probability is allowed. In this issue it is necessary to obtain legal support from the specialists of our company, which will help to organize the profitable business connected with the ICO correctly.

ADVICES FOR BEGINNERS

The proposed advice can increase the chances of success in opening an account.

  • Do not contact international financial holdings, such as HSBC and UBS. A positive answer can be obtained from small banks that are willing to take risks.
  • A clear business model – a bank employee should see a transparent system of income and expenditure of funds.
  • Show a detailed statement of the account, attract investment partners and counterparts who have a good reputation.
  • We recommend that you register your company in a reliable jurisdiction. The bank needs to prove that under the control of the regulator funds will not fall into the hands of scammers.

The bank should see the value of the financial project, see a stable minimum balance of funds on the account, regular payments and the conduct of profitable transactions.

The moment when the banker comes to the approved Letter, is considered the very first and most important achievement on the road to success.

Eternity Law International specialists will assist you in opening a bank account under ICO.

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