"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?

Toggle signature

@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 

[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.

Toggle signature
This is the probably the answer to your question.

 

[Novice]

JohnnyDoe said:
Why one would want to use your service instead of sending directly from one wallet to another?
Click to expand...

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 your 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.

Toggle signature
Find help to the ultimate anonymous setup on OffshoreCorpTalk - Tried, Tested & Works
Need help to get things done, ping me inside the Mentor Group Gold forums.