Ready, Steady, Go!
-Are you a crypto startup? Are you working with cryptocurrencies directly/indirectly?
-Sorry, you have been denied opening an account. Our compliance team reserves the right not to disclose the details.
Does it sound familiar? You are not the only one.
Here are some stats from our own experience:
- If you are a cryptocurrency company, in 92% of cases you will get either a “deny” right away or “no response”. Second option is far more frequent;
- In 7% of cases banks will ask for additional information, at least giving you some hope. After liaising internally, you would get a “deny”;
- In the remaining 1% of cases you would be given a “yes”. Still it depends if you can convince a bank.
The truth is that banks are hesitant to deal with such high-risk clients. Cryptocurrency is still a phenomenon that has not been studied in much detail; banks still have no idea on how to approach it. Unfortunately, this is even the case for countries with more or less clear regulation. Good example of this is Estonia. The Intelligence Unit of Estonia issues cryptocurrency licenses for businesses working in this sphere. However, even though the industry is regulated, there is nothing stopping Estonian banks from refusing applications for business bank account opening. Simple as that.
Do it yourself or outsource?
Finding the right business bank account for your crypto company can take you a long time to do, which was shown from our statistical insights. Another thing, is that even though you`re pre-approved for your bank account application, the fees for using such an account could be extraordinary high compared to what traditional businesses are paying. Therefore, here comes a dilemma- do it yourself without having a clue where to start and with no assurance that you will get what you need; or ask for help from professionals, who will give you realistic options?
Our story is that we`re a cryptocurrency exchange Bit4.Sale based in Estonia. Company incorporation was a headache from the beginning. Licensing was a different beast, which took as a long time and effort to obtain. Unfortunately, there was no one around that time to consult us upon different bits here and there. This includes the necessity of having a local director, office, contact person etc. We learnt at the cost of our own mistakes. Nevertheless, the most difficult part was banking.
We had luck of finding the 1% of banks who were willing to work with us. We required a multicurrency account and that the banks were cool we work with cryptocurrencies. Unfortunately, the fees for having such a bank account were high. On average, if we add up all bank expenses we would have incurred, this would had reduced the profitability of our business by 0.92%.
This wasn`t the best option for us, hence we decided to outsource business account opening to professionals. This is when we found Ready Steady https://ready-steady.net/
Ready Steady- all in one cryptocurrency business help
Ready Steady is an experienced service for business and startups. Main area is cryptocurrency sphere, but they also help traditional businesses.
Ready Steady offered us several options where we could have a business bank account. Options were also ranging in terms of fees; multicurrency account possibilities; remote bank account opening etc. It was very convenient because all available options were presented and we only had to choose one or several to proceed. This has saved us time and effort. At this point in time, we now have three bank accounts opened, for EUR, GBP and USD. What`s best about, banks are crypto friendly and volumes we can have monthly are pretty hefty.
However, it is not just business bank account opening Ready Steady can help you with. They also help with company formation specifically in Estonia and the UK, obtaining of licensing for your crypto company, 0% VAT and corporate tax adjustment; consultancy. What`s more important, they also help with legal opinion formation and merchant account opening.
Legal opinion is a vital document that proves your cryptocurrency business is legitimate in a specific jurisdiction. Without knowing the right trusted law firms, you can spend multiple times than you should. Ready Steady can take care of it. Moreover, such legal opinion will be accepted by banks, VISA and MasterCard, which is essentially, what you need as a cryptocurrency company.
Merchant account opening is another strong business side, because Ready Steady can again present you options on how you could process VISA and MasterCard card payments of your clients. They will gather the best options for you, from which you could choose if you want the lowest card processing fee, as low as 1.8%; no rolling reserve; daily settlements into your bank account; or all in one if you like. We really recommend this one because it is very easy to go wrong with your merchant account if you do it by yourself. There are major clauses merchant account providers don`t pick up upon you exchange contracts, which in the future will act as a detriment to your business.
Cryptocurrency sphere is a “Wild West”. It may seem so if you rely on a blind luck. First steps in cryptocurrency business truly come with a great effort. It costs you time, nerves, and more importantly, money. If we had known Ready Steady from the beginning, we would have done much better. This includes consultancy; cryptocurrency business formation; licensing including legal opinion side; business bank account opening; merchant account opening; VAT and corporate tax. Do not just lurk in the dark by yourself; it is vital you stick to the right people to avoid your business losing competitiveness.