Incorporation for non KYC

[slade991]

Hello all,

I currently own a us llc, however a new law for IAAS will soon require providers to ask customers for KYC information. Problem is our niche is exactly the opposite, not requiring any KYC and 90% of our customers pay with crypto.
The current setup is that the crypto is converted to fiat through exchange and then hit our corporate bank account.

I'm now looking at incorporating somewhere else where i can keep the no KYC requirement for my business. However it doesn't seem very clear where that would work.
Does anyone know which country i could incorporate where i could conduct my business without asking any information from my customer ?

Obviously we do not provide any financial solution or the like, only provide services and crypto is only used as a method of payment.

Thank you!

 

[daniels27]

Maybe no setup, just a wallet address?

And for the paying customers a company in Switzerland, Liechtenstein or Caribbean?

 

[slade991]

I want to be fully legit and also the money doesn't stay in crypto it is converted to fiat and go to business bank account.

 

[JackAlabama]

slade991 said:
I want to be fully legit and also the money doesn't stay in crypto it is converted to fiat and go to business bank account.
Click to expand...

fully legit wont work down the line if you're not following with what they demand/the global trend is. (0 property rights, 100% kyc for everything including visits to toilet).

 

[slade991]

JackAlabama said:
fully legit wont work down the line if you're not following with what they demand/the global trend is. (0 property rights, 100% kyc for everything including visits to toilet).
Click to expand...

At the moment it is not required everywhere so i'd like some place where i can incorporate that doesn't require it still. If it change in the future we'll see.

 

[JackAlabama]

slade991 said:
At the moment it is not required everywhere so i'd like some place where i can incorporate that doesn't require it still. If it change in the future we'll see.
Click to expand...

yup, then you gotta move away from usa for now. Maybe a structure combined with a banana islands entity (for which no banking is needed) plus a more reputable onshore entity somewhere which holds the banana island company and has a business bank account for.
Eventually you can even use an usa llc for this? im not sure tho.

 

[slade991]

issue with this kind of setup is that it start to get real expensive really fast. Would rather have everything in one spot.
I was looking at singapore ? But i'm not 100% sure about the compliance.

 

[daniels27]

Where do you pay the legit taxes?

 

[Sols]

What's the KYC obligation for IAAS?

If what you're providing is not a regulated activity, I don't understand why you'd be required to conduct KYC on your customers. Crypto is just a payment method. If you have particularly onerous regulations applicable to you (can't/shouldn't even receive/hold crypto directly), can you avoid them by working with Bitpay, Coinspaid, Moonpay, or similar that convert crypto to fiat for you?

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This is the probably the answer to your question.

 

[slade991]

there is a new law incoming : U.S. Department of Commerce Publishes Proposed Rule Imposing “Know Your Customer” and Reporting Requirements on U.S. Infrastructure as a Service Providers
The issue is when reporting income for tax purpose, often invoices are necessary and require customer information( at least a name / address) we don't gather anything beside an email address.

so i'm looking for a jurisdiction where i can keep doing that.

 

[daniels27]

slade991 said:
there is a new law incoming : U.S. Department of Commerce Publishes Proposed Rule Imposing “Know Your Customer” and Reporting Requirements on U.S. Infrastructure as a Service Providers
The issue is when reporting income for tax purpose, often invoices are necessary and require customer information( at least a name / address) we don't gather anything beside an email address.

so i'm looking for a jurisdiction where i can keep doing that.
Click to expand...

Check Mullvad VPN, they are from Sweden and you can pay them cryptic while they don't even have an email address if yours.

Also Walmart in the US manages it to sell new a horse while I pay cash and they have no any information about me. I am pretty sure that any country is able to accept your receipts for tax purposes while your don't even know an email address if the customer.

 

[JohnLocke]

I don't quite understand the issue other than you wanting a company that is anonymous and preferably a bank account that is as well. You are 10 years too late for that to be possible anymore.

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[daniels27]

JohnLocke said:
I don't quite understand the issue other than you wanting a company that is anonymous and preferably a bank account that is as well. You are 10 years too late for that to be possible anymore.
Click to expand...

As far as I understand, he only wants privacy for his server hosting clients. I personally think and European jurisdiction would suffice as there are only laws in the US on hosting clients. In any case he still runs the risk of prosecution if his clients are knowingly involved in criminal activity.

 

[Don]

slade991 said:
Hello all,

I currently own a us llc, however a new law for IAAS will soon require providers to ask customers for KYC information. Problem is our niche is exactly the opposite, not requiring any KYC and 90% of our customers pay with crypto.
The current setup is that the crypto is converted to fiat through exchange and then hit our corporate bank account.

I'm now looking at incorporating somewhere else where i can keep the no KYC requirement for my business. However it doesn't seem very clear where that would work.
Does anyone know which country i could incorporate where i could conduct my business without asking any information from my customer ?

Obviously we do not provide any financial solution or the like, only provide services and crypto is only used as a method of payment.

Thank you!
Click to expand...

Then, perhaps you should check into jurisdictions that have the least or do not have any AML compliance regulations.
Based on Basel AML global ranking, those could be:
1 Haiti
2 Chad (African Romania)
3 Myanmar
4 The Democratic Republic Of The Congo
5 Republic Of Congo
6 Mozambique
7 Gabon
8 Guinea-Bissau

 

[daniels27]

Why AML? He is only worried about KYC for hosting.

 

[Don]

daniels27 said:
Why AML? He is only worried about KYC for hosting.
Click to expand...

KYC is usually undertaken as part of Anti-Money Laundering (AML) requirements.
KYC-only is in cases, for example, when you need to verify someone's age.
In more and more jurisdictions, accepting crypto payments is immediately subject to AML rules. So you should select a jurisdiction which does not have that issue.

 

[slade991]

Thank you for the recommendations guys.
So just to clarify :
The issue is that we want to incorporate in a place where we can legally operate ( and pay taxes ) without having to disclose our customers information.
The core of our business is that we do not ask for any information ( beside an email address ).
For example i am at the moment looking into Singapore but it seems that to report taxes you need to send all the invoices of your customers and those must contain a name and an address.

So we are looking for a place were we can somehow declare our taxes and everything without having to disclose customers information.

regarding that list :
1 Haiti
2 Chad (African Romania)
3 Myanmar
4 The Democratic Republic Of The Congo
5 Republic Of Congo
6 Mozambique
7 Gabon
8 Guinea-Bissau

Tbh i'd rather avoid all of them.... Also we will need banking with that, i don't think banking in those countries is a good idea.

The issue with europe is that exchange start to delist Monero for certain countries, and we use exchanges to offramp to our company account. We cannot take the risk to incorporate in Europe and not be able to easily offramp Monero ( about 50% of our customers).

 

[daniels27]

How about Switzerland? They also offramp Monero?

 

[Marshal]

Monero will soon be removed from all licensed crypto exchanges. There will be no way to cash out this crypto easily and cost effective. Anonymity is costly.

 

[Don]

Perhaps El Salvador could be option, assuming clients will pay in bitcoin.

El Salvador became the first country to make bitcoin legal tender; not only must bitcoin be accepted as a means of payment for taxes and debts, but also businesses are required to accept bitcoin as a medium of exchange.