Starting a crypto exchange

From the first steps and company formation, Harvex have helped create some of the largest exchanges in the industry

Selecting a jurisdiction to incorporate your crypto exchange, brokerage or trading platform is an exceptionally important decision. We guide you through the process with our industry experience and extensive background knowledge. Harvex have incorporated companies in 50+ countries, most with multiple ownership tiers. including cross border ownerships and multi-national shareholders.

Harvex can provide the full remit of company secretarial services, including registered offices & nominee Directors if required.

KYC/AML & compliance for Cryptocurrency Exchanges

The complex world of compliance is second nature to the Harvex team.

Harvex can assist with the implementation of exchange KYC/AML specific to the cryptocurrency sector. We work with leading, reputable providers at the forefront of digital verification. We can also advise on the bespoke crypto KYC/AML regulations for the countries of operation of your exchange, brokerage or trading platform.

bank for cryptocurrency exchanges

Depending on your business, juristiction, KYC/AML and expected transaction - banks are hard to find

We're an accountancy with unique abilities to provide siutable banking solutions for cryptocurrency exchanges across Europe, having formed and developed an account solution alongside Xace.

Exchange Company Formation

Starting your crypto exchange on the right foot

International Corporate Structuring

Harvex work with some of the world’s largest cryptocurrency exchanges, brokerages and trading platforms, making us one of the worlds leading advisory agencies for your corporate structuring needs. We have extensive experience in start-up companies through to multinational established organisations.

Banks for crypto exchange

Our global network of clients and contacts specific to crypto related businesses and individuals means we can support your crypto exchange, brokerage and trading platforms with banking options worldwide. The frequent conversion of funds from crypto to fiat requires a certain type of account and we can support you directly with everything required.

Exchange Juristiction

The most important decision when starting a cryptocurrency exchange is where to register the company. We know the best solutions for each business scenario.

Secretarial Services

Make use of our registered offices, directors and secretarial services in your preferred location, without the need for a physical presence in the country.

Brokerage Bank Account

Converting cryptocurrency to fiat, or securing finance options on your crypto holdings, are all possible with our extensive partner network and experience of all situations.

Crypto Loans

Securing a crypto loan for your exchange, trading platform or brokerage is possible, without converting your currencies to fiat. Discuss options with our team.

Crypto Exchange KYC

Regulatory is essential for your exchange to remain compliant and must be executed correctly

Harvex have global experience in different jurisdictions and the regulatory positions governments and tax offices take. We will assist you in aligning the requirements of your business with the trading regulatory requirements, including multi-national structures. Our connections with various governments, tax offices and legislations allow you to gain pre-approvals where available.

Ongoing Compliance

As the cryptocurrency landscape continuously evolves globally, we provide ongoing cryptocurrency exchange advisory, specific to the sector to benefit you. We have connections with government departments & regulators and bring you the most up-to-date, relevant information for your business.

Government Connections

Experience working with Governments and tax offices in multiple international locations for exchange and brokerage clients provides you with unique solutions for your requirements.

KYC Requirements

On top of advising on required KYC/AML requirements, we support on you decisions and connections with who to work with, the best technical solutions and discounted pricing.

Regulatory Notifications

With the ever evolving industry becoming hard for you to stay on top of, we provide immediate notification services for regulatory changes that directly affect you.

Crypto Exchange Accounting

From tax reports to filing accounts, Harvex have been accounting for the globes biggest exchanges since 2014

We provide tax planning and advice with specialist focus on the world of cryptocurrency, allowing you to spend more time on your business. We have clients across both individuals and corporate companies, based all over the world.

Exchange trading reports

Harvex have many clients who trade with a variety of online exchanges and platforms, allowing us a level of experience that’s second to none in the market. Converting the data from cryptocurrency to fiat can be a timely exercise for your business. We provide solutions to convert trading data into reporting packs and Financial Statements efficiently.

Crypto Tax

Often overlook across the industry, your crypto tax requirements are very much an important part of your exchange, trading platform or brokerage, keeping you on the right side of the local tax laws.

Exchange Experience

Having worked with major exchanges and clients who utilise a wide range of exchange and trading platforms, we’re here to offer insight from both a corporate and user/investor point of view.

Do gaming licenses have to be renewed?

Yes. All licenses have to be renewed and reviewed. This is to ensure you're still operating under the rules of your license and you will be required to prove this with your renewal application. We can handle renewals for you and maintain compliance through regular bookkeeping as your accounting firm.

What will stop us from getting a gambling license?

There are many factors that will affect this process, the first of which will be a criminal conviction. If you have one, you won't get a license. Then things such as general compliance, who are you, who are the directors, where are you based, how will you check players and handle payments, will you do KYC/AML checks, where has the money come from to start the casino, how will the game be financed etc Speak with us to determine your eligibility for certain licenses.

How long does it take to get a gaming license?

It really depends on how prepared you are for compliance and what license you require. It can take anywhere from 2 weeks to 3 months to get sorted, or longer if your business is not yet ready for the license to be issued.

What is a gaming license?

Well simply put, you cannot facilitate the act of gambling without a suitable license, be that in a physical casino or an online egaming platform. It is illegal around the world to do so, while each licence only allows the operation of such business in certainly locations and to certain nationals. Speak with a specialist consultant or lawyer before starting any gambling business.

How much is a gaming license?

Gaming licenses vary greatly, as do the costs. Prices start from £15,000 for the easiest and least intrusive to secure licenses, up to £100,000 per year for some of the more complex jurisdictions and licenses. it will really depend on where you need to license and what type of egaming license you require.

How do you get a gaming license?

Securing a gaming license is not a simple process and should be carried out be specialists in the industry. You will need to provide significant documentation to prove your compliance and suitability for the license, no matter where that license may be from.

What games can be licensed from Curacao?

There are no restrictions on the types of games that can be licensed, making Curacao attractive for a whole host of different games such as bingo, lotto, poker, crash, slots, competitions, sportsbooks and betting.

How long will it take to get winnings from a Curacao casino?

it really depends on the platform. The best suggestion is to make sure you play trustworthy sites with strong community backing, as this will almost always drive greater customer support by the casino. No gaming site works without a community that trusts it implicetly with user funds and fair gaming. If an igaming site is not taking care to payout quickly and look after it's players, then do not play there.

Can I complain to a Curacao casino?

Being licensed out of Curacao does not come with the same level of restriction of requirement as other jurisdictions. The cost is lower and the process simpler and unfortunately this often means that customer services is at the bottom of the list for those running the site. You can complain of course and depending on the platform and their desire to keep you as a customer, you may get the support you need.

What are the age restrictions for a Curacao licensed gaming site?

As should be the case for any form of gambling, players of a casino licensed out of Curacao should all be over 18. It is recommended that the age of players is requested and checked before allowing an account to be setup or any gambling to take place. Running a compliant casino, poker room, lotto or competition is essential not just for your licencing but for bank accounts, payment gateways, brokers and FX providers, who will all need to understand what restrictions you have in place before offering you any services.

Are my winnings at a Curacao licensed casino taxable?

There are no taxes to be paid directly via casino for games such as Poker, slots, lotto etc and there are no local tax laws in Curacao that can touch your winnings directly. This does not cover your own local taxes though, where withdrawing winnings in crypto or USD, GBP, EUR etc will all need to be declared to the relevant tax authorities.

Do I have to declare my crypto investments to the tax man?

Investing in cryptocurrency is not a taxable event, therefore at this point you'd need not tell the tax man. However, the important point at which the tax man will become interested is when you sell, especially at a gain. If you've sold at a gain, then you should declare this to the tax man. Similarly if you have sold at a loss, you should explore offsetting tax losses. Harvex can help minimise your tax bill, using appropriate legislation. Find about more about UK crypto tax and investments or chat we us for USA and other jurisdictions.

Do we need to invoice for cryptocurrency payments?

If you want to receive crypto as a means of payment, you should invoice in the same way you would if you issued an invoice in USD, GBP, EUR or any other fiat currency. The only difference is you add your wallet address instead, or in addition to your bank details. If you are receiving passive income from a cryptocurrency investment portfolio, or a profit share, you may not be required to invoice - this would be a case by case basis.

How should we be accounting for our cryptocurrencies?

Depending if you hold cryptocurrencies for investment purposes, for trading purposes or accept them as means of payment will guide the accounting approach you should use. For example, cryptocurrency held for investment purposes would generally be held on the balance sheet and revalued periodically, with a different type of accounting approach implemented if the investment is held as an individual. This is very different to accepting cryptocurrency as a payment for services instead of fiat, or trading cryptocurrencies. Harvex' vast experience means we know how to correctly account for almost every digital asset class or digital currency type. Accounting standards for cryptocurrencies are evolving day by day and our job is to make sure we apply the correct accounting approach based on the latest legislation.

Do we have to pay tax on our cryptocurrencies if there's no profit?

Generally, no. If your company has no profit, the fact you own cryptocurrency will not immediately mean you owe any extra tax. On an individual level, if you have sold cryptocurrency at a loss, then you may actually be able to reduce your tax bill. In both the above cases of companies and individuals, we would recommend discussing with Harvex to ensure you are tax reporting your cryptocurrency correctly, as tax structures and situations are frequently different, especially in the cryptocurrency sector.

Can I buy Cryptocurrency through a Limited Company?

Yes, in the UK it is perfectly acceptable to purchase Cryptocurrency, such as Bitcoin (BTC), via a Limited Company. Other acceptable ‘legal forms' to purchase Crypto assets are as a Sole Trader or Partnership. The distinction between each will be in the accounting and tax on the purchase.

Do Bitcoin gambling sites need a licence?

Online gaming sites accepting Bitcoin are required to obtain a licence before operating, in the same way a 'normal' gambling site would. However, the process of obtaining a licence for a cryptocurrency gambling site is considerably harder - licencing authority options are extremely limited. If you wish to open an online casino accepting cryptocurrencies, leading online gaming experts Harvex can obtain a crypto gaming licence for you.

Do Crypto Hodler's pay tax?

In the majority of jurisdictions, including UK, USA and Malta, a cryptocurrency 'hodler' will not be taxed. This is because the event of purchasing cryptocurrency is not a taxabale event. As a result, if you hold your investment indefinitely, irrespective of the value, you will not have to pay tax.

What is Crypto Treasury Management?

Cryptocurrency Treasury Management is the process in which your online and offline wallets, exchange balances and fiat bank accounts are overseen and collated to ensure; 1) you are aware of your current assets/cash on hand with price volatility, and 2) sufficient funds are in the correct place for upcoming events - for example liquidating crypto to facilitate payments in fiat, or vice versa.

What are Crypto-Assets?

Crypto assets is the umbrella term used to cover a wide range of digital assets. This includes all forms of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) - ERC20 tokens, plus Initial Coin Offerings (ICO's) which usually take the form of utility tokens, Security Token Offerings (STO's) and Non-Fungible / collectables tokens, also known as ERC721 tokens.

Where should I incorporate my online casino?

There are a few countries where you can incorporate an online casino, along with a suitable licence for your activities. The countries are, on the most part, UK (plus Isle of Man and The Channel Islands), Gibraltar, Malta, Curacao and Antigua & Barbuda. Remember, the licencing country will have a set list of requirements including countries you must geo-block for your gambling activities. Online gaming experts Harvex will be able to explain the difference between all the different options.

How much is an online gaming licence?

Online egaming licenses, also know as remote gambling or betting licences vary in cost depending on the issuing jurisdiction. The cost will further vary depending on whether the gambling authority requires you to have a company in the jurisdiction (increasing costs) and which countries are white-listed. As such, an online gaming licence cost can range from tens of thousands of US Dollars upwards.

Where can I get a Payment Service Provider for my Online Gambling site?

Accepting debit or credit cards online via a PSP for any gaming, egaming, remote gambling, casino or betting site will be challenging. However, it is possible and you can apply for a Payed payement gateway via Harvex here.The most important factor is you are likely to have far more success when applying for a PSP via an existing contact of the Payment Service Providers, who the PSP's know and trust. The payment provider will want to ensure chargebacks and fraud are minimal, and this is helped by robust company processes, the correct license and ongoing compliance. Companies such as Harvex have strong relationships with Gaming/Gambling PSP's, which can help support your application, both on a success rate and also on timescales.

Exchange accountant questions

The complex world of running an exchange

Your exchange will be doing thousands of transactions a day for potentially thousands of tokens with fiat on and off ramps and a whole host of FX challenges - you need a top accountant with extensive industry experience. Like Harvex.

We know the industry

No one knows the industry like Harvex, especially when it comes to crypto exchanges. We've worked with major brands across Europe and the US including the UK and Malta.

Our knowledge

Our knowledge from first business idea through to global crypto exchange is unrivalled from any other accounting company in the industry. Our FAQs help you understand some of the most challenging aspects of crypto exchange accounting.

Crypto related services

Blockchain & Dapp accounting

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What They say ?

Since we began working in Blockchain and Crypto in 2016, Harvex have been the perfect partners for everything to do with our finances. We're able to accept any currency, handle our FX and brokerage and they secured our bank account. Along with handling all our accounts and tax, we couldn't cope without Harvex.

Adam - Searched

Managing Director

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