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Businesses dealing with digital assets often face significant challenges with set up and operations. Establishing a bank account can be an insurmountable obstacle.
However, the situation is slowly changing. Last year, Malta passed into law three bills related to blockchain technology. More recently, France passed the PACTE law which provides clear regulatory guidelines for businesses operating with digital assets and those raising funds via public token offerings.
The Ministry of Finance of Lithuania has also published comprehensive guidelines for cryptocurrency and initial coin offerings (ICOs), covering four major areas from accounting to taxation.
Regulations such as these will make it easier for digital asset businesses to find banks which are willing to provide their services. However, the rate at which regulation is coming into place is still lagging behind the widespread propagation of businesses dealing with digital assets.
Assessing the Alternatives
So far, there have been a number of alternatives which crypto businesses have used to circumvent this problem. These have ranged from making use of more boutique services to being willing to forgo fiat currency completely.
Companies such as ConnectPay, MisterTango, and SendFriend are services which have been willing to accept accounts for businesses dealing with digital assets. There are also a number of smaller banks which have been willing to take on these businesses such as Silvergate Bank in San Diego who reported to Bloomberg that digital asset businesses have as much as $40 billion to deposit.
Other businesses including Binance have forgone having a bank account completely. 90% of Binance employees have been reported to be paid their salaries in the exchange’s native token BNB.
Solutions to consider
For many, completely forgoing a bank account and operating the business entirely with cryptocurrencies is not an option.