Risks of accepting crypto payments

[newguyhere]

I have been reading this forum for a while. I see a lot of opinions that say you are at risk of getting bank account frozen if you deal with crypto.

What are the risks of accepting crypto on website? In my case specifically, I sell e-books.

If I accept cryptos directly, then sell on exchange and withdraw to my bank account, is there a risk of getting bank account frozen? I imagine questions would arise of the origins, and I could provide invoices and transaction data.

If so, is there a way around this problem? I imagine you can sell the crypto to a company and have it show up on invoices as something else, however that in my eyes is more of a risk (and it is actual laundering) than just openly depositing the earnings to the bank.

 

[JohnLocke]

newguyhere said:
I have been reading this forum for a while. I see a lot of opinions that say you are at risk of getting bank account frozen if you deal with crypto.

What are the risks of accepting crypto on website? In my case specifically, I sell e-books.
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We have done that for the last 4 years and did not faced any risk at all. With your ebook I can't imagine that you will face any trouble neither.

What you read about here may be large sums which are moved around and which course troubles to the owners.

In the past we had large crypto amounts which we exchanged to our regular bank account frequently about 1M a year, we had no troubles doing so.

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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​

 

[JohnnyDoe]

Keep neat accounting, write the wallet address on the invoice and you will not face any major problem

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[tomboy]

newguyhere said:
I have been reading this forum for a while. I see a lot of opinions that say you are at risk of getting bank account frozen if you deal with crypto.

What are the risks of accepting crypto on website? In my case specifically, I sell e-books.

If I accept cryptos directly, then sell on exchange and withdraw to my bank account, is there a risk of getting bank account frozen? I imagine questions would arise of the origins, and I could provide invoices and transaction data.

If so, is there a way around this problem? I imagine you can sell the crypto to a company and have it show up on invoices as something else, however that in my eyes is more of a risk (and it is actual laundering) than just openly depositing the earnings to the bank.
Click to expand...

I guess it mostly depend on your bank and your relationship with them... btw, this does not apply to crypto only but to any financial movement.
As long as you can provide supporting documents on your incoming/outgoing cash flow and your bank clearly understand your activity, you should not face any problem.

 

[hungryPanda]

Anyone has any experience for accepting crypto payments for SaaS in EU. What data do you need to keep in hand for AML reasons.

tomboy said:
I guess it mostly depend on your bank and your relationship with them... btw, this does not apply to crypto only but to any financial movement.
As long as you can provide supporting documents on your incoming/outgoing cash flow and your bank clearly understand your activity, you should not face any problem.
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What should these supporting documents look like, other than a receipt ?

 

[JohnnyDoe]

hungryPanda said:
Anyone has any experience for accepting crypto payments for SaaS in EU. What data do you need to keep in hand for AML reasons.
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The same data you receive from any other client paying fiat.

hungryPanda said:
What should these supporting documents look like, other than a receipt ?
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The only difference is that you should indicate your wallet address on the invoice.

For ease of accounting, you should use a dedicated wallet only for your business. If you use Trezor, Exodus or other wallets that generate new addresses for each transaction, you might need to provide your accountant with the XPUB address so he can see the “master” wallet.

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[hungryPanda]

JohnnyDoe said:
The same data you receive from any other client paying fiat.

The only difference is that you should indicate your wallet address on the invoice.
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So name, mail and ip address should suffice right?

 

[JohnnyDoe]

hungryPanda said:
So name, mail and ip address should suffice right?
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You should better confirm with your accountant.
The IP address should not be necessary, also because it can be masked or the client could be traveling. Usually you indicate the client's physical address on an invoice.

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[hungryPanda]

JohnnyDoe said:
You should better confirm with your accountant.
The IP address should not be necessary, also because it can be masked or the client could be traveling. Usually you indicate the client's physical address on an invoice.
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Well but what if the client puts UAE as address to pay lower Vat. I assume ip should be necessary to validate in that case.

 

[JohnnyDoe]

hungryPanda said:
Well but what if the client puts UAE as address to pay lower Vat. I assume ip should be necessary to validate in that case.
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No, you rely on what your client says.

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[jkk]

JohnnyDoe said:
You should better confirm with your accountant.
The IP address should not be necessary, also because it can be masked or the client could be traveling. Usually you indicate the client's physical address on an invoice.
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For a digital product would only country suffice or you need the exact street address as well?

To determine VAT rate, from what I've read under 100k/year you only need 1 proof of customer's location. Over that, you need two proofs (for example, address and IP) that are not contradicting. Someone correct me if I'm wrong.