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How To Open USD Bank Account For Crypto Company [Full Guide]

Updated: May 4


 

Currently the biggest challenge for cryptocurrency companies is getting USD payment capabilities for their crypto to fiat and fiat to crypto operations. This article serves as a comprehensive guide to help cryptocurrency companies navigate this complex process.


usd-bank-account-for-crypto-company

 

Why It Is So Hard To Get USD Bank Account For Crypto Companies?

 

The relationship between traditional banking institutions and cryptocurrency entities has been historically complicated. Banks are often hesitant to serve crypto-related businesses due to regulatory uncertainties, the risks associated with money laundering and fraud, and the volatile nature of the crypto market

 

Moreover, cryptocurrencies, with their decentralized nature, pose a perceived higher risk for activities like money laundering and terrorist financing, making banks to struggle ion identifying source of funds.

 

Lastly, the crypto meltdown in late 2022 has put U.S. regulators on edge. Since then, USD rails for crypto companies have become increasingly hard to obtain, with only a few U.S. based banks left in serving the industry.

 

 

What Are The Options?

 

However, there are still some USD rails available for crypto companies and we are going to discuss them:

 

1.     Pooled USD Accounts. Pooled accounts serve the purpose for collecting and disbursing funds in USD. The problem is that it is in financial institutions name – not the clients name. And anyone who is going to send money to pooled account is going to use an identification code. This creates a trustworthiness problem.

2.     Named USD Accounts. Less common and difficult to obtain option is named account IBANs that are actually in clients name. Such accounts allow more control and transparency, especially in dealing with C2B and B2C flows.

 

If you would like to explore first and second options, fill out our contact form and we will send you an up to date list of crypto friendly USD bank account providers, that are ever changing.

 

 

How About Compliance?

 

Make sure your crypto business is in orderly and complaint structure, ready to demonstrate relevant KYC and AML processes and documentation. Here is a broader list of suggestions that our team compiled for you:

 

- Registering with the appropriate regulatory bodies: It is very important to be licensed by a relevant regulatory body of your country of operation. For example, in North America MSB license is required, in the EU VASP and/or EMI, and so on.

- Implementing robust Anti-Money Laundering (AML) and Know Your Customer (KYC) policies: Banks will scrutinize your company’s compliance framework to mitigate their risk. Be ready to provide your risk sampling files and statistics related to clients being onboarded. Moreover, some banks might ask for an external AML audit within 3 to 6 months from opening an accounts.

 

Prepare a comprehensive business plan and financial forecast that clearly explains your business model, revenue streams, and how you address regulatory and market risks. This documentation will be critical in discussions with potential banking partners.

 

 

Additional Banking Services

 

Banks that are crypto-friendly and can provide with USD accounts and payment rails usually have more currencies and services available that your crypto company should understand and consider. Here is a checklist for you:

 

- Other currencies beside USD, that are also popular in the industry: AUD, GBP, EUR, CAD, JPY, CHF and more. Does the bank have them available for you?

- Additional services such as: crypto on-ramp and off-ramp, currency exchange, FX forwards, crypto wallet integration to the general banking ledger.

- Understand fee structures and minimum commitment requirements.

- Utilize any API integrations that are available with the bank

 

 

Account Set-Up

 

After a successful application, your crypto company will have a USD bank account, but the journey doesn’t end there. Maintaining a good relationship with your bank is crucial. Regularly update your bank on any significant changes in your business model or regulatory status. Ensure ongoing compliance with all regulatory requirements and bank policies.

 

Also make sure your banking fees are sustainable and reflect the nature of your business accordingly. Negotiate these fees where possible and always be aware of the cost-benefit analysis.

 

What is often under looked is a contingency plan. Consider having relationships with multiple banks to preserve your operations continuity.  If you require multiple accounts, you may also reach out to us for a list of crypto-friendly banks in your region.

 

Conclusion

 

Opening a USD bank account is a critical step for cryptocurrency companies. While the process can be challenging, thorough preparation, compliance, and choosing the right banking partner can significantly ease the journey.

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