Running a crypto-only business

[Burak]

- B2C Digital products, paying suppliers* in crypto
- Getting paid directly to private wallets
- Holding crypto and cashing out with P2P (cash and metals)
- Not dealing with any banking / payment processor at all

* Using a dormant (not sure if this is correct word, but it doesn't have any accounted activity) company to deal with suppliers (KYC / KYB). I don't think they report as they are taking crypto payments privately.

I'm aware this is what most people / my competitors do, but is there any possibility you get in trouble? Especially at big scale, when you send 7 digits to supplier per month.

 

[JohnnyDoe]

No problems at all. Just keep proper accounting, and don’t commingle corporate and personal funds.

 

[Burak]

No problems at all. Just keep proper accounting, and don’t commingle corporate and personal funds.

Can you elaborate what you mean by proper accounting, I thought company doesn't have any official activity as it doesn't receive payment from any payment processor.

 

[JohnnyDoe]

Can you elaborate what you mean by proper accounting, I thought company doesn't have any accountable activity as it doesn't receive payment from any payment processor.

I mean that you have to prepare financial statements as required by the laws of the country where the company is incorporated.

 

[void]

I thought company doesn't have any accountable activity as it doesn't receive payment from any payment processor.

obviously wrong - you have to have accounting even if you get paid in potatoes which is equally legit

 

[Burak]

obviously wrong - you have to have accounting even if you get paid in potatoes which is equally legit

Yes, but in my case I don't collect payments as company. Only place I use company's name is KYB docs, in the theory I send funds on behalf of company but suppliers are also from other countries and I highly doubt they report somewhere.

 

[JohnnyDoe]

Yes, but in my case I don't collect payments as company. Only place I use company's name is KYB docs, in the theory I send funds on behalf of company but suppliers are also from other countries and I highly doubt they report somewhere.

Quite a stupid way to try to be smart.