Company for P2P Crypto trading

[0lmeR]

Hi everyone.

I am planing to incorporate a company for P2P trading on all possible crypto exchanges (Binance, OKX, Bybit, etc) as verified merchant. Most of the customers are going to be individuals obviously. The business model is pretty simple: the company is getting verified on the exchanges, buy/sells crypto for fiat using P2P marketplace, receives money from individuals for crypto and sends money to individuals for crypto.

Based on the experience, what is the best set up for this type of activity? Let's assume that the UBOs, shareholders and directors are no going to come from unfriendly jurisdictions but from EU, UK, Canada.

1) Opting for CASP license in EU?
2) Canadian MSB?
3) Setting up a front-shop company which will "trade CS/DOTA/etc skins" and open a verified account in Binance to justify the incoming payments from individuals?

Scenario 1,2 is more difficult due to regulatory requirements and requires more costs to administer it (having MLRO/AML officer, etc). Also, the share capital requirements are going to be pretty high due to MICA requirements if opting for EU jurisdiction.
Scenario 3 is risky in terms of operating an account in any EMI as they might easily close it.

Perhaps there is another scenario which I am not aware of.

I would be grateful for any advices here.
Thanks.

 

[W Fish]

What exctly is your question, what problem are you solving?
Anyways, banking is a much bigger problem for this activity than incorporation.

 

[0lmeR]

What exctly is your question, what problem are you solving?
Anyways, banking is a much bigger problem for this activity than incorporation.

Yes, indeed. This is the most important issue.

The problem I want to solve is that I don`t want the company's account to be closed due to massive amount of incoming payments for individuals which are also using P2P platform to exchange the crypto.

Therefore, I have in mind three options, described above.
1) Opting for CASP license in EU?
2) Canadian MSB?
3) Setting up a front-shop company which will "trade CS/DOTA/etc skins" and open a verified account in Binance to justify the incoming payments from individuals?

 

[forward]

Hi everyone.

I am planing to incorporate a company for P2P trading on all possible crypto exchanges (Binance, OKX, Bybit, etc) as verified merchant. Most of the customers are going to be individuals obviously. The business model is pretty simple: the company is getting verified on the exchanges, buy/sells crypto for fiat using P2P marketplace, receives money from individuals for crypto and sends money to individuals for crypto.

Based on the experience, what is the best set up for this type of activity? Let's assume that the UBOs, shareholders and directors are no going to come from unfriendly jurisdictions but from EU, UK, Canada.

1) Opting for CASP license in EU?
2) Canadian MSB?
3) Setting up a front-shop company which will "trade CS/DOTA/etc skins" and open a verified account in Binance to justify the incoming payments from individuals?

Scenario 1,2 is more difficult due to regulatory requirements and requires more costs to administer it (having MLRO/AML officer, etc). Also, the share capital requirements are going to be pretty high due to MICA requirements if opting for EU jurisdiction.
Scenario 3 is risky in terms of operating an account in any EMI as they might easily close it.

Perhaps there is another scenario which I am not aware of.

I would be grateful for any advices here.
Thanks.

you can still use VASP in EU in certain jurisdictions for +- 18 months

that would be a good start with proper account in a friendly EMI...

 

[Clearsky Network]

you can still use VASP in EU in certain jurisdictions for +- 18 months

that would be a good start with proper account in a friendly EMI...

VASP is a good option, but make sure you can comply with MICA requirements before investing money in it.

 

[cuno]

I have no clue, but doesn’t Cyprus and Malta seem just right for such a business?

Getting a bank account is probably difficult no matter where in the world you set up a company for your business.