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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. 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.
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.
The first aspect to remember is - this won't be something you can build overnight. Setting up an Security Token Offering is a complex process, where you should be prepared to bring in a wide range of partners to support bringing your business idea to life. You should consider building a team (or at least taking top level advice) from a wide scope such as lawyers & regulatory advisors, accountants, tax advisors, marketing providers (or similar true experts in taking an STO to market) and in some cases software / Blockchain developers. Setting an STO up correctly to begin will avoid you potential problems in the future.
For more information on STO Advisory please speak to the Harvex team.
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.
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.
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.
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.
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.
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.
If your token issuing company is profitable, in a jurisdiction that charges tax, at some point the profit from token sales will most likely be taxable. However, when that tax point arises, and when the tax is paid can be mitigated. For example, a tax on the sale of the tokens at the outset, may be avoided with the correctly drafted token contracts. Plus, utilising ICO friendly international jurisdictions can be a valuable tool in ICO tax planning.Harvex can create tax efficient ICO structures at the outset, using our global ICO knowledge to benefit owners, investors and token subscribers alike. For active ICO’s, Harvex have vast experience in completing tax returns, with an emphasis on ICO companies.
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.
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.
Technically, Know Your Client and Anti Money Laundering for Initial Coin Offering's is dependent on the token issuing jurisdiction. Some jurisdictions have yet to legislate for digital assets, others have. In any case, irrespective of whether legislation is in place, it is good practice to apply full KYC, such as a passport copy, utility bill and source of funds checks.Harvex advise not only ICO's, but a wide range of cryptocurrency companies on KYC and AML matters in a variety of jurisdictions.
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.
Depending if you are offering a Utility Token, Security Token or Payment Token will have major impact on where you should register your ICO company; from legal, to tax to financial regulations. Importantly, the management company and token issuing company do not need to be in the same country, giving Directors a range of options - Harvex can create the corporate structure of your ICO for you to align with your projects requirements.
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.

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If you need further answers that you cannot find in our FAQ’s, please do get in touch with our team so we can help you plan and implement the best solutions for your business.