Is it possible to create a funding company

avikz

legendary

Activity: 3080

Merit: 1500

Quote from: debuni on October 10, 2019, 08:42:22 PM

I would like to know if it's possible to create a company specialized in lending to trading platforms (funding on Binance, Bitfinex, Bitmex, etc) and if I would have problems reporting income knowing that interests may vary from 8 to 16% APR and that it depends entirely on the market situation.

You mean to say you want to start a venture capital company with main focus to crypto trading market. It is very much possible but be prepared with few millions at least! For tax, get professional help!

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Of course, I'm talking about doing this in crypto-friendly jurisdictions, I'm interested in Estonia since everything can be done online thanks to their e-residency.

Also, do you have other jurisdictions to suggest?

How about Japan? They are most crypto and busines friendly nation in the world!

Theb

hero member

Activity: 1680

Merit: 655

E-residency might sound like the big loophole for your lending business but the application for an e-residency itself might be a big obstacle in your plans. Even though the application is online you still need to have a physical interview with them either in Estonia itself or any of their embassies before they even provide you the e-residency card. They are also strict with applications more related to financial activities compared to other industries since they know the abuse in money laundering with the use of their own e-residency cards. Where are you situated by the way? Maybe you don't really need to apply an e-residency with the current country you are living in.

Kemarit

legendary

Activity: 3080

Merit: 1353

Obviously, one that easily pops out is Malta. And then the Tiger of Baltics.

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Tax Treatment of Cryptocurrencies in Slovenia

Together with Estonia, Lithuania, and Finland, Slovenia is one of the countries-to-be in Europe for businesses dealing with cryptocurrencies. The Slovenian government aims to represent the country as a leading EU member state in the field of blockchain technology. This is done by maintaining publicity about the potential of the technology, encouraging entrepreneurship and investment in the field, and applying a preferential tax regime to cryptocurrency transactions.

https://www.nomoretax.eu/crypto-taxation-slovenia/

How about Singapore?

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The Inland Revenue Authority of Singapore, the country’s taxation agency, has recently issued an e-Tax guide on “Digital Payment Tokens” on the 5th of July 2019 that is a proposal to bring an end to the ‘double taxation’ of transactions paid for by cryptocurrencies, from the beginning of next year.

http://disruptionbanking.com/singapore-to-end-taxation-on-crypto-transactions/

So as far as creating a crypto lending company, I think its doable specially if you're going to put it up on some crypto friendly nations above. Good luck.

CryptoBry

sr. member

Activity: 1008

Merit: 355

Quote from: debuni on October 10, 2019, 08:42:22 PM

I would like to know if it's possible to create a company specialized in lending to trading platforms (funding on Binance, Bitfinex, Bitmex, etc) and if I would have problems reporting income knowing that interests may vary from 8 to 16% APR and that it depends entirely on the market situation. Of course, I'm talking about doing this in crypto-friendly jurisdictions, I'm interested in Estonia since everything can be done online thanks to their e-residency. Also, do you have other jurisdictions to suggest?

You can choose to headquarter the business in a location that can be friendly (and give a lot of incentives and breaks) to crypto-related enterprises and I am sure there are now many countries (especially small island states) very accommodating and welcoming new investments into their locations. I can mention countries like Belarus, Slovenia, Liechtenstein and even Malta, headquarter of Binance, just to name a few. There is a big market with the lending/funding idea that you are thinking about and I think there had been some good projects on this industry, some of them even went ICO in 2017 and 2018.

dothebeats

legendary

Activity: 3542

Merit: 1352

Cashback 15%

Possible to create a lending/funding firm specializing in crypto, seeing that e-Residency of Estonia freely allows people from anywhere in the world to establish their own digital business within their jurisdiction. It's better to consult them directly and read the terms and conditions instead of asking the forum for such information. More likely that you'll get approved since the Estonian government seem to be friendly with the thought of foreigners establishing their businesses within the said country.

BigBoy89

legendary

Activity: 1512

Merit: 1011

You could try these guys:

https://www.advocatescyprus.com/crypto-forex-broker-licence-lnd/

They claim to be: Experts in Crypto FOREX Broker/ Funds/ Payment Institution Licensing

For the record, I've never use it, but currently, they are actively spamming on Linkedin.

debuni

legendary

Activity: 1162

Merit: 1002

I would like to know if it's possible to create a company specialized in lending to trading platforms (funding on Binance, Bitfinex, Bitmex, etc) and if I would have problems reporting income knowing that interests may vary from 8 to 16% APR and that it depends entirely on the market situation.

Of course, I'm talking about doing this in crypto-friendly jurisdictions, I'm interested in Estonia since everything can be done online thanks to their e-residency.

Also, do you have other jurisdictions to suggest?

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