Opening Bank Account For Crypto Exchange In 7 Steps

In the rapidly evolving world of cryptocurrencies, starting a crypto exchange has become an attractive business venture for many. However, one critical step in establishing a successful crypto exchange is opening a bank account that can handle fiat-to-crypto transactions. This article provides a detailed guide on how to navigate this complex process, ensuring your crypto exchange operates smoothly and complies with legal requirements.

Understanding The Challenge of Banking

Opening a bank account for a crypto exchange is often one of the biggest operational hurdles for founders. Traditional banks remain highly cautious when it comes to servicing cryptocurrency businesses, largely due to concerns about compliance, fraud and money laundering risks. Unlike standard businesses, exchanges deal with a complex flow of funds: customers deposit crypto, it is traded, converted into fiat, and then withdrawn—all of which makes it difficult for banks to apply their standard risk and transaction monitoring frameworks.

A 2023 survey by Cointelegraph Research found that 56% of crypto exchanges cited banking access as their top operational challenge, with many forced to rely on offshore banking or smaller Electronic Money Institutions (EMIs) in jurisdictions like Lithuania or Malta. For example, several exchanges in the UK and EU reported losing accounts with Tier 1 banks in 2022 following heightened regulatory scrutiny, leaving them scrambling for secondary providers to keep client withdrawals flowing.

The reality is that not many banks have the infrastructure, compliance expertise, or risk appetite to onboard a crypto exchange. This is why many exchanges take months preparing detailed compliance documentation, securing legal opinions, and even restructuring their corporate setup to meet a bank’s acceptance policy.

Step 1: Compliance First

The first step in opening a bank account for your crypto exchange is ensuring your business is in full compliance with all relevant laws and regulations.

This includes registering your business, obtaining any necessary licenses (VASP license for example), and implementing robust anti-money laundering (AML) and know your customer (KYC) policies. In addition, if you can secure a legal opinion or external audit, proving that your internal controls are robust, that might increase chances of signing a reliable and well-known banking partner.

Demonstrating that your exchange operates legally and ethically is crucial to gaining the trust of potential banking partners.

Step 2: Research Potential Banking Partners

Not all banks are open to working with crypto-related businesses, so it's important to conduct thorough research to identify those that are.

Look for banks that have a history of dealing with the cryptocurrency sector or those that have explicitly stated their openness to such businesses. Consider both local banks and those in jurisdictions more favorable to cryptocurrencies.

In the similar vein, Neo-Banks are good option for crypto exchanges as they are more flexible in adjusting their policies and allowing crypto clients onboard. Moreover, there are specialized Neo-Banks popping up with a mission to democratize banking for crypto businesses.

However, you should carefully check those before engaging, as some of them are unable to offer multi-currency solutions, do not have robust API’s for payment automation and might still be a strict as traditional banks when it come to onboarding or operating.

If you would like us to send you an up to date list of crypto exchange friendly banks that we have already engaged and onboarded clients with, fill our contact form and we will send it to you by email.

Step 3: Prepare Your Business Plan

A comprehensive business plan is essential when approaching banks. This plan should detail your business model, target market, currencies that are you planning to serve clients in, revenue streams, and, importantly, how you intend to manage risks associated with cryptocurrency transactions. Even more, you should have payment volume projections ready, so that a potential banking partner can evaluate the business potential and prepare adequate commercial offer.

A well-thought-out business plan not only demonstrates your seriousness but also shows the bank how you plan to ensure your business's and their clients' security.

Step 4: Highlight Your Compliance Measures

When you're ready to approach a bank, make sure to highlight the compliance measures you've put in place. This includes your AML and KYC procedures, any regulatory licenses you've obtained or are in process of getting (this is very important as more licenses you are trying to land, banks will assess this as positive), and how you monitor transactions for suspicious activity and what are your counter measures to prevent or remediate it. Banks need to see that you're committed to operating a safe and compliant exchange.

Step 5: Be Prepared For Due Diligence

Banks will conduct thorough due diligence on your business before opening an account. This process can be lengthy and will likely involve a detailed review of your business operations, financial projections, compliance measures, and the backgrounds of your team members. Be prepared to provide extensive documentation and to answer any questions the bank may have.

If you fail to answer due diligence questions in time or detail, you might completely jeopardize your application. We have witnessed clients that were reluctant to disclose sensitive information that bank wanted to analyze and that cost them an application all together.

Step 6: Negotiate Your Banking Charges

Once a bank has agreed to take on your business, it's time to negotiate the services you'll need. This includes discussing flat and variable payment fees, foreign exchange or on-ramp off-ramp charges, withdrawal and deposit limits from your clients, monthly fees or commitments, and any other services crucial for your exchange's operations.

Make sure you clearly understand the terms of service and any potential costs involved.

Step 7: Continuous Compliance And Communication

After successfully opening a bank account, maintaining a strong relationship with your bank is key. This means ensuring ongoing compliance with all regulatory requirements and keeping the bank informed of any significant changes in your business. For example, any fines from regulator or adverse media should be reported to the bank with a remediation plan, which will might save your account. Regular communication can also help prevent any misunderstandings and ensure a long-term partnership.

Additional Thoughts For Selecting Banking Partners

When selecting a banking partner, a crypto exchange should prioritize providers that enable seamless C2B and B2C payment flows, allowing customers to deposit and withdraw funds efficiently.

Banks or EMIs offering embedded finance solutions with individual IBANs for end-users can greatly improve transparency and reconciliation, while robust on/off ramp capabilities ensure smooth conversion between crypto and fiat.

Competitive FX spreads and payment feesare key for reducing operational costs, especially for exchanges dealing with multi-currency flows.

Forward-looking providers also offer open banking integration, interest-bearing accounts on both fiat and crypto balances, and high-quality API connectivity, which together streamline automation and enhance the customer experience. A strong banking partner is not just a payment facilitator but a growth enabler for exchanges operating in increasingly competitive markets.

Why Banking Redundancy Is Essential For Crypto Exchanges

For crypto exchanges, maintaining banking redundancy is not just a best practice—it’s a survival strategy. According to a 2024 study by Coalition Greenwich, over 55% of fintechs and exchanges reported at least one major disruption in fiat payment operations due to banking partner issues. Having relationships with multiple banking providers ensures that deposits, withdrawals, and settlements can continue even if one bank unexpectedly cuts ties or experiences downtime.

For example, a European exchange serving clients in both the UK and Asia was able to seamlessly reroute withdrawals through its secondary partner bank when its primary banking corridor froze USD settlements for compliance reviews. Without this redundancy, users face delays, reputational damage spreads quickly on social media, and trading volumes drop.

Building a diversified banking stack with at least two to three providers across different jurisdictions mitigates this risk, giving your exchange resilience and client confidence.

Conclusion

Opening a bank account for your crypto exchange involves navigating a complex landscape of regulatory compliance and banking skepticism. However, with thorough preparation, a strong emphasis on compliance, and effective communication, it is possible to establish a banking relationship that supports your exchange's growth and success.