"Exchanging Money between wallets" Business

[Novice]

If we offer exchanging funds between different online wallets (Payoneer, PayPal, Bank, Skrill...), Is this kind of business illegal or requires a specific license?

We plan to KYC our customers.
We exchange funds only to accounts owned by the same customer.
We take a small cut.
We'll do it using a US LLC.

 

[JohnnyDoe]

Why one would want to use your service instead of sending directly from one wallet to another?

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[Sols]

Yes, it requires a license, without which it's illegal.

It's also a blatant violation of‌ the terms and conditions of most wallets.

 

[Novice]

I want to make sure you get this‍ right first:
If someone has money on his Payoneer account and he wants to get⁠ it to his Skrill account, he can withdraw to his bank account and then send⁤ it to his own Skrill account.

Using a service we're planning to provide, it would⁣ be:
Cheaper and faster through us.
They might not always be able to withdraw their⁢ funds or add to their accounts (Payoneer is an example. You can't easily find your︀ account through your bank or cards.)

 

[treasureinyou]

Lookup KYC and more importantly AML. Also look up mandatory sentencing for money laundering, then‌ find another business to start...

 

[uplana]

There are similar services around on the market, the problem is almost none of them‌ are operating as a legal operation duly incorporated.

You will need to obtain a license‍ sooner or later because you are handling 3rd party funds.