Best way to transfer crypto to fiat (business account)

[respect]

Hi,

I would like to know what is the best way to exchange crypto to fiat, and deposit that money in a business account. Let's say Peter has $100K in crypto. He has a company. He wants to exchange his crypto personal assets to fiat company assets so that he can invest/use that money through the company. His company is in a jurisdiction with 0% corporate tax.

What would be the best way for Peter to proceed with this? In terms of accounting, what would be the correct way to document this?

 

[Internationaloff]

1. an exchange like Kraken.
2. a private exchanger.

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[ultrarekt]

Might depend on a multiple set of factors.

Is he also in a jurisdiction with 0% tax, or only his company is?
Is he on the company's documents, or it's an anon company?
Is peter himself in North America? Europe? Asia?

 

[JohnLocke]

You may use Mister Tango, works perfectly fine, the same is AdvCash where you can exchange to FIAT and pay out to your current MasterCard or Visa card instantly.

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[Internationaloff]

AdvCash it too expensive:
- Fund Transfer to a VISA/MC 3.95% + € 6
- Fund Transfer via SEPA 2.95% + € 10

Mistertango can be a good choice, but a company account (Business+) has a monthly fee (€ 99,99) + a setup fee (€ 299,99) + a conversion rate (BTC/FIAT).

If Peter (respect) wants to exchange his crypto personal assets to fiat company assets, the best choice is an exchange like Kraken (fund transfer via SEPA € 0,09).

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[respect]

Ok, it's clear that the best option for Peter would be to use an exchange such as Kraken, Coinbase Pro, Bitfinex or Bitstamp to exchange his crypto to fiat.

From there, what would be the best option?

1. Transfer fiat from personal exchange account to business bank account?
2. Transfer fiat from personal exchange account to personal bank account and then to business bank account?
3. Transfer fiat from business exchange account to business bank account?

In terms of accounting, this would be an investment (equity) in the company, right?

 

[Internationaloff]

respect said:
Ok, it's clear that the best option for Peter would be to use an exchange such as Kraken, Coinbase Pro, Bitfinex or Bitstamp to exchange his crypto to fiat.

From there, what would be the best option?

1. Transfer fiat from personal exchange account to business bank account?
2. Transfer fiat from personal exchange account to personal bank account and then to business bank account?
3. Transfer fiat from business exchange account to business bank account?

In terms of accounting, this would be an investment (equity) in the company, right?
Click to expand...

1. Open a corporate account on Kraken or other exchange
2. Deposit BTC in Kraken or other exchange
3. Make conversion BTC/FIAT
3. Withdrawal via SEPA to company Bank account.

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[MrTony]

I am sorry, but which bank will be glad to accept money from such sender as Kraken?

 

[Internationaloff]

MrTony said:
I am sorry, but which bank will be glad to accept money from such sender as Kraken?
Click to expand...

For example, Leupay.

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[MrTony]

Leupay actually is not a bank and doesn't work with my jurisdiction, but thank you for advice.

 

[Internationaloff]

MrTony said:
Leupay actually is not a bank and doesn't work with my jurisdiction, but thank you for advice.
Click to expand...

Leupay is not a Bank, I know it. But it is safe for business up to € 250K.
If Peter's company is accepted by Leupay, there will be no problems.

For more peace of mind, just add:
5. Withdrawal via SEPA or SWIFT to another company bank account. thu&¤#

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[respect]

Internationaloff said:
1. Open a corporate account on Kraken or other exchange
2. Deposit BTC in Kraken or other exchange
3. Make conversion BTC/FIAT
3. Withdrawal via SEPA to company Bank account.
Click to expand...

How could that movement be justified in accounting? I mean, if there is entering money to the company bank account, there must be a reason why.

 

[respect]

Some more tips on how to account that properly?

 

[MrTony]

respect said:
How could that movement be justified in accounting? I mean, if there is entering money to the company bank account, there must be a reason why.
Click to expand...

You need agreement and invoice for your services in BTC to the counterparty, for example

 

[Internationaloff]

respect said:
How could that movement be justified in accounting? I mean, if there is entering money to the company bank account, there must be a reason why.
Click to expand...

Do you have a company with or without accounting?

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[respect]

Internationaloff said:
Do you have a company with or without accounting?
Click to expand...

Yes, accounting is required, but government don't ask for it.

 

[Internationaloff]

respect said:
Yes, accounting is required, but government don't ask for it.
Click to expand...

Jurisdiction?

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[JohnLocke]

respect said:
Yes, accounting is required, but government don't ask for it.
Click to expand...

If it's a Seychelles corp. it won't work, you may be more clear!

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[Stefano3323]

If the crypto comes from the individual you first need to transfer them under the company (for accounting), so you can do it as a capital investment. Once the cryptos are in the company you record them at the date value with the currency you keep the accounting record (USD or EUR). At that point, once you sell the cryptos you record the sell price and you add a surplus or loss on cryptos appreciation or depreciation.

We are in a similar solution and we use transferwise to receive payment from cryptos cashout.

 

[binbin]

Internationaloff said:
Leupay is not a Bank, I know it. But it is safe for business up to € 250K.
If Peter's company is accepted by Leupay, there will be no problems.

For more peace of mind, just add:
5. Withdrawal via SEPA or SWIFT to another company bank account. thu&¤#
Click to expand...

are you sure about lepay ? here on this thread they said they got their account blocked.

Last edited by a moderator: Jun 21, 2021