A cryptocurrency bank is a financial institution that performs operations
with a cryptocurrency, and not with fiat money. Clients of the cryptocurrency
bank are persons who use cryptocurrency and block technologies in their
operations.

WHY DO WE NEED A BANK WORKING
WITH CRYPTOCURRENCY?

Cryptocurrency bank provides services of funds storage, crediting, bank
transfer, exchange of currencies, acquiring for legal entities, that is
services provided by classic banks, but with the use of tokens. In this case,
it is possible to use cash back and loyalty programs for clients.

In the process of banking, virtual bank cards, mobile applications and
crypto-cash ATMs and terminals are used.

PRE-CONDITIONS FOR CREATING
CRYPTOCURRENCY BANKS

The blockchain technology develops rapidly, the frequency of bitcoin usage
in trade operations is continuously growing. There are many projects which are
created for making favorable conditions for the development of blockchain
technology and cryptocurrency.

The world’s largest banks are working to create their own cryptocurrency.
Cash is no longer in trend, bitcoin is gradually becoming a universal option
for conducting transactions and in the near future it will be used at the same
conditions as fiat money. Wherein, due to the absence of a clear legal
regulation, it is rather problematic to open an account in a traditional
bankfor companies that are directly connected with cryptocurrency activities.

HOW DO I REGISTER A BANK THAT
CAN ACCEPT CRYPTOCURRENCY?

Before registering a cryptobank, you must select the most appropriate
jurisdiction. After incorporating the company, you must obtain an appropriate
license. It should be taken into account that cryptocurrency activity does not
have a single definition and is regulated according to its nature and
direction. Usually there are: cryptocurrency transfers, the exchange of
cryptocurrencies for fiat money, cryptocurrency lending, and investment
services.

Each activity direction requires a special permit (license) and the
adaptation of activities under the relevant legislation. The most popular are
the Electronic Money Institution (EMI) license, the Money Transmission License
(license for money transfers), the License for activities to provide
alternative methods of payment.

For each type of license there are special requirements. For example, to
obtain an EMI license, you must havequalified personnel, a detailed business
plan, and authorized capital of a certain amount.

WHAT OPPORTUNITIES DOES THE
EMI LICENSE GIVE?

The EMI license allows you to issue your own virtual currency, which can be
used outside of the licensee’s system, create your own electronic wallet and a
card payment system, conduct transactions, sell and buy your own virtual
currency from the customer-holders.

IN WHAT JURISDICTION IS IT
BETTER TO REGISTER A CRYPTOCURRENCY BANK?

It can be said that there is no universal jurisdiction for opening a bank
operating with a cryptocurrency. The choice of jurisdiction is influenced by a
number of factors: the geographical segment of potential consumers, the loyalty
of legislation, the residence of board members, the presence of dominant
services (bank cryptocurrency transfers, the exchange of cryptocurrency for
fiat money, crediting). It is possible to obtain an EMI license in Europe or
Belize, a license for money transfers in Hong Kong, exchange of cryptocurrency
in Estonia. In general, the most favorable to the cryptocurrency are Estonia,
Hong Kong, Singapore, the United States, the UAE and other jurisdictions. Also,
you should not forget about offshore banks.

Registration of a cryptocurrency bank is not an easy task. However, with
the help of a team of SBSB professionals, you will easily achieve this goal. We
offer the following services for establishing a bank with cryptocurrency: the
choice of jurisdiction for a bank with a crypto currency, assistance in
registering a bank accepting a crypto currency, obtaining a license for
crypto-currency activities, maintaining at all subsequent stages.

For over five years we have been advising our clients in the field of
corporate law, international tax planning, finance, international licensing and
integrated business support in more than 40 countries.

We will be glad to help you.