Crypto Investment Program

[Amoled]

Where should I go to, when I wanna create a Cryptocurrency Investment Plan, similar to a HYIP, but legit?

I would trade from Bitcoin to Ethereum and back etc. and pay my clients interest, depending on their deposited money.

Do I need a special license, when I only accept Cryptocurrency like Bitcoin or Ethereum?

I would like to go with a Seychelles IBC or SCL (depends on the fact if I need a license), is this a good choice?
I am from Central Europe, when it matters.

 

[jryan54]

This is a tough one because what you are offering would be typically considered a financial product in most jurisdictions and require some form of licensing or disclosure. So many of these "HYIP" schemes have turned out to be outright scams/ponzi's that I suspect if you did go down the actual licensing route that you would have trouble finding anyone that would be prepared to accept your investment scheme as legitimate.

However, assuming this is actually a legitimate business, you could open a New Zealand Financial Service Provider company (FSP) and then deal solely offshore (not with NZ citizens) and primarily wholesale and you would likely escape supervision with the FMA. However, you would probably have to bank offshore given that most of the banks here would be unlikely to accept that sort of business for account opening.

Anyway hope that gives you a starting point and something to think about.

 

[Amoled]

The problem is, thar you have to provide proof of knowledge about your financial service, have employees in a physical NZ office, and NZ based investors has to be the main target.

 

[negon]

jryan54 said:
However, assuming this is actually a legitimate business, you could open a New Zealand Financial Service Provider company (FSP) and then deal solely offshore (not with NZ citizens) and primarily wholesale and you would likely escape supervision with the FMA. However, you would probably have to bank offshore given that most of the banks here would be unlikely to accept that sort of business for account opening.
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this may actually be your best option.. the problem will be the bank account as already mentioned here. Most banks will refuse to make business with you.

 

[Amoled]

auric said:
this may actually be your best option.. the problem will be the bank account as already mentioned here. Most banks will refuse to make business with you.
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I would want to receive funds in Crypto, so for that i wouldnt need a bank account, i could probably ask payment processors like "Revolut" and "ADVCash" if they would accept Investment Businesses

 

[negon]

As far as I remmeber Blockchain.info let you integrate with an API to accept crypto currency BTC etc.

 

[Amoled]

Yes, thats how i wanna receive funds from investors, i wont receive any Fiat currency, the only purpose of a bank account would be to cash out profits of mine.
Profits of the investors will also be paid out as Bitcoin.

 

[negon]

So form a simple Seychelles or Belize corp and you will be fine. It may require a license or not, anyway, no one is really going to stop you.. the HYIP programs around doing the same, they simple close the corps once they are blacklisted and open new ones.

 

[jryan54]

Amoled said:
The problem is, thar you have to provide proof of knowledge about your financial service, have employees in a physical NZ office, and NZ based investors has to be the main target.
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Actually, that's not the case at all. I live and deal in NZ and there are no such regulations. Anyway, as Auric has already mentioned, if you are only going to deal in crypto...simply open a belize or seychelles company.

 

[Amoled]

Ok, when this is a legal and legit, and I dont need a License or just an Seychelles SLC, then this might be the easiest and probably cheapest option - thank you

 

[superman]

@Amoled
Do you ask if this is legal and legit on the Seychelles or in your residental country from where you operate the business? As long you stay completely invisible this could work.

 

[Amoled]

I wanna know if it is legit in Seychelles, I personally do not necessary wanna keep everything invisible, but just a legit investment business.
So to keep it legal, I theoretically would have to pay taxes in the country I currently live in, because I cannot move to the Seychelles at this point, is this right?

 

[jryan54]

Amoled said:
I wanna know if it is legit in Seychelles, I personally do not necessary wanna keep everything invisible, but just a legit investment business.
So to keep it legal, I theoretically would have to pay taxes in the country I currently live in, because I cannot move to the Seychelles at this point, is this right?
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Paying taxes and running an investment scheme are two separate and distinct legal issues. One certainly doesn't make the offer acceptable nor legal. In most jurisdictions the Tax office will accept tax liabilities regardless of whether the activity is legal or not.

In regards to your investment fund question, it will really depend on what and how you plan to solicit funds (funding model) as well as whom you are dealing with. So it's very hard for anyone here to give you what is essentially a legal opinion on your setup. However, you are most likely to be safe if you are dealing wholesale (getting funds from other companies) and/or not soliciting money from anyone in Belize. The worst that would probably happen is that Belize could blacklist your company and release an advisory suggesting that people should be wary about dealing with you.

Anyway, that's probably the extent of the info I can provide you and i would suggest that if you do want to be highly visible fronting an investment operation that you seek a legal opinion from a Belize Attorney. I believe my agent would charge around $500 for an opinion typically to give you an idea of the general cost of it.

Cheers

 

[Amoled]

The question about the taxes had nothing to do with the imvestment business, but with general legal aspects of the Seychelles company.

So could it be risky to collect funds from private investors?

Also, when this should be a major problem, I just could ban Belize investors from my site.

As i said I wanna collect the funds of 3rd party private investors in Cryptocurrency, so no FIAT and trade Crypto/BTC pairs, and distribute the profits also in Bitcoin, so in the whole process there will be no FIAT-Currency.

 

[Amoled]

Would the UK also be ok, for the crypto investment program?

 

[diablo]

Amoled said:
As i said I wanna collect the funds of 3rd party private investors in Cryptocurrency, so no FIAT and trade Crypto/BTC pairs, and distribute the profits also in Bitcoin, so in the whole process there will be no FIAT-Currency.
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you can do that with a Seychelles, Belize and any other Company.. as long as no real Money is involved no one will give a s**t about it.

 

[AMD]

diablo said:
you can do that with a Seychelles, Belize and any other Company.. as long as no real Money is involved no one will give a s**t about it.
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Sadly not any longer. If you have a look inside the mentor group gold you can find better options. These jurisdictions are not worth any longer to look into, it is more important to secure your privacy in a different manner.

Dubai looks like it is the new s**t, it is the location at the moment where everyone is going.