What Is The Best Bank for a Crypto Startup?

[Deactivated] on 11/11/2021 - 11:51
Last edited 11/11/2021 - 13:00

This is a Bitcoin ATM Business

I have been told Volt Bank has openly said they would embrace Crypto and provide BAAS(Banking as a Service).

Commbank looks like its embracing Crypto but has a history of closing business accounts and even personal trading in Crypto Exchanges. I gave them a call today and the agent told me there should be no issue registering Business Transaction Bank account for a Bitcoin ATM Business unless Commbank were looking to compete with me. He also said a less Crypto Sounding name such as my personal name would mean its less likely to be denied opening the account. He said there is no official stance on Bitcoin from Commbank and many other banks on accounts but there should be no reason they deny me anymore unless they want to get into it themselves.

https://www.commbank.com.au/articles/newsroom/2021/11/CBA-to…

Generally Credit Unions, Investment Banks, Business Banks, Traders Banks, Neobanks are the only ones who will work with Crypto as Retail Banks declare it is too risky despite us not even wanting to borrow money just use a transaction account. They sometimes cite KYC(Know your Customer), AML(Anti Money Laundering) and CTF(Counter Terrorism Funding) concerns too.

Bank ratings from customers on Crypto:
https://moonbanking.com/?country=AU
2017 Crypto Banking Blacklist(Did not find a bank)
https://www.reddit.com/r/Bitcoin/comments/6fl0i3/the_blackli…

Financial Cryptocurrency

Comments

  • orangetrain on 11/11/2021 - 12:40
    +2

    What kind of crypto startup? A market? A new coin?

    • [Deactivated] on 11/11/2021 - 13:00

      Bitcoin ATM Business

      • orangetrain on 11/11/2021 - 13:36

        As in, go up to an atm and it dispenses coins?

        (I joke, good luck with your startup)

  • Switchblade88 on 11/11/2021 - 12:46

    If you're asking on OzBargain about financial advice relating to your crypto business, you are going to have a bad time…

    • [Deactivated] on 11/11/2021 - 13:00
      +1

      I saw techlead and many other have multimillions in Crypto
      Just wanted to know what bank they use

      • Cave Fire on 11/11/2021 - 13:42
        +1

        techlead is dodgy… recently made a pump and dump crypto. Few other controversies about how much money he actually has and few other things. But yes, people were buying Ethereum at $9 for example and it's $4800~ now.

      • deme on 11/11/2021 - 15:44

        Isn't techlead a certified (profanity) though?

  • sw00p on 11/11/2021 - 12:50

    When moon?

    • [Deactivated] on 11/11/2021 - 13:01
      -3

      100k AUD by the end of the month

  • brendanm on 11/11/2021 - 12:51
    +4

    Bitcoin ATM Business

    Withdraw $100, get charged $70 gas fee.

    • [Deactivated] on 11/11/2021 - 13:01

      I am trying to undercut the fees, as I saw many in my City are charging 8% buy and 15% sell fees

      • brendanm on 11/11/2021 - 13:05

        How do you plan to undercut the fees exactly? How are you planning to buy/sell the tokens?

        I can sell on binance and have the money in my account in seconds, with much lower fees, what's the advantage here?

        • [Deactivated] on 11/11/2021 - 13:11

          Bitcoin ATM's have a week's volume USDT balance in Hotwallet, and a day's worth of BTC volume which is replenished when customer makes a buy.

          They then sell the Crypto at 8% more then market price to customer for cash or buy it for 15% below the market rate for cash. I plan to undercut them by placing machines in locations nearby and lowering the fees as Bitcoin ATM's are a planned destination that people research online.

          The machines I am looking at support Selling and Buying all these currencies with only a base balance in BTC/USDT.

          Aave
          (AAVE)

          Dogecoin
          (DOGE)

          Ethereum
          (ETH)

          Uniswap
          (UNI)

          USD Coin
          (USDC)

          0x
          (ZRX)

          1inch
          (1INCH)

          Algo
          (ALGO)

          Basic Attention Token
          (BAT)

          Bitcoin
          (BTC)

          Bitcoin Cash
          (BCH)

          Cardano
          (ADA)

          Celsius Network
          (CEL)

          ChainLink Token
          (LINK)

          Compound
          (COMP)

          Dai
          (DAI)

          Dash
          (DASH)

          Decentraland
          (MANA)

          Enjin Coin
          (ENJ)

          Litecoin
          (LTC)

          Loopring
          (LRC)

          Maker
          (MKR)

          NANO
          (NANO)

          OMG Network
          (OMG)

          PAX Gold
          (PAXG)

          Polygon
          (MATIC)

          Polymath Network
          (POLY)

          Shiba Inu
          (SHIB)

          SushiSwap
          (SUSHI)

          Tether ERC20
          (USDT)

          The Graph
          (GRT)

          Tron
          (TRX)

          TrueUSD
          (TUSD)

          Wrapped Bitcoin
          (WBTC)

          yearn.finance
          (YFI)

          • brendanm on 11/11/2021 - 13:12

            @[Deactivated]: How is this a benefit over just selling and transfering to your account?

            How do you plan to make money when transaction fees for Bitcoin, eth etc are so high?

            • [Deactivated] on 11/11/2021 - 13:14

              @brendanm: The transaction fees come out of the amount the customer receives. People may want to sell bitcoin for cash as they don't want to pay tax or buy bitcoin with money instead of credit card or bank transfer. You are offering convenience.

              • brendanm on 11/11/2021 - 13:16

                @[Deactivated]: So they get shafted on fees, as well as spread? Again, why would anyone do this over selling and doing an instant withdrawal?

                • [Deactivated] on 11/11/2021 - 13:19
                  -2

                  @brendanm: Convenience. 70-80% of transactions will be people buying Bitcoin. Also if they are selling Bitcoin to the machine they can avoid tax.

                  • Settero on 11/11/2021 - 13:35
                    +2

                    @[Deactivated]: yeah , you are going to be exited from any bank you join , you will have so many fraud /scam reports against your business , any bank you join will get sick of it and kick you.

                    • Cave Fire on 11/11/2021 - 13:50
                      +1

                      @Settero: How is he going to get scam reports by his own customers…? Seems like someone is doing this already.

                  • brendanm on 11/11/2021 - 16:41

                    @[Deactivated]:

                    Convenience. 70-80% of transactions will be people buying Bitcoin.

                    Really? Having to find and go to a random crypto ATM, is harder than buying from your own home, and saving 15%? Doesn't make sense.

                    Also if they are selling Bitcoin to the machine they can avoid tax.

                    How does this work exactly?

    • rektrading on 11/11/2021 - 15:41

      A BTC Tx costs less than $1 right now.

      https://mempool.space/

  • Third_Gear on 11/11/2021 - 13:07

    https://coinatmradar.com/operator/49/bitrocket-bitcoin-atm-o… Think they already do this…. Personally I don't see any value in it. Isn't the whole point to move away from Fiat?

    • [Deactivated] on 11/11/2021 - 13:13

      Yes I'm planning to undercut Bitrocket, I have cheaper machines so can rollout more quickly with more coins supported(they only support BTC). You may not see value, but there are many less tech savvy who do.

      • Third_Gear on 11/11/2021 - 13:20
        +1

        But if you aren't tech savvy enough to know how to buy crypto online (which is really really really easy) then will you be tech savvy enough to understand how to use the ATM and transfer to your wallet etc? I mean you can use a credit card online to by BTC and store it in an exchange. The only real functional use I can see for ATM's and crypto is illegal activity such as money laundering. Not having a go at you btw. Best of luck and keep us updated if you can as I am really quite curious as to how it all works out.

        • [Deactivated] on 11/11/2021 - 13:22

          The machines seem to have proven themselves as a sustainable business model in many countries and are just starting out in Australia with 41 machines. The first machine in Vancouver did more than $1,000,000 volume in 12 months. They haven't had any Money Laundering issues yet.

        • rektrading on 11/11/2021 - 15:39

          Money laundering is done through banks using fiat money.

          NOVEMBER 19, 2020
          According to Fenergo’s mid-year report, global financial crime-related penalties in 2020 crossed $5.6 billion. As a result of massive fines handed down to banks in the US, EU, and Australia in Q3 2020, the figure now stands at close to $9 billion, crossing the $8 billion high set in 2019 with two months to spare.
          https://www.arachnys.com/2020s-largest-aml-fines-show-a-trou…

          .

          Apr 12th 2021
          Yet another bank is preparing to face the music over alleged failings in its efforts to curb flows of dirty money. In the coming weeks NatWest, one of Britain’s largest lenders, is set to appear in court in London to respond to charges that it failed to properly scrutinise a gold-dealing client that deposited £365m ($502m) with the bank—£264m of it in cash.
          https://www.economist.com/finance-and-economics/2021/04/12/t…

      • deme on 11/11/2021 - 16:22

        I have cheaper machines so can

        Do you or did you just see an ad for them?

  • Mechz on 11/11/2021 - 13:36

    Maybe someone like Macquarie?

  • MrThing on 11/11/2021 - 14:26

    an ATM for buying crypto

    what a great way to launder money, watch out casinos, crypto ATMs are coming for you

    • Cave Fire on 11/11/2021 - 16:01

      If you have someone's crypto wallet address, it's actually easier to track transactions.

  • rektrading on 11/11/2021 - 14:58
    -1

    Australia is behind in the adoption of Bitcoin ATM. The US, EU and Asia have 1000s and the number is growing.

    https://coinatmradar.com/countries/

    Bitcoin ATM will be the future when all the legacy banks that haven't been blockbustered provide it as a convenience and an easy source of revenue.

    • [Deactivated] on 11/11/2021 - 15:27

      Yes the biggest danger is Big 4 Banks and others competing with you but they might buy you out instead

    • deme on 11/11/2021 - 15:41

      Imagine paying to get cash out in 2021.

      • rektrading on 11/11/2021 - 15:54

        The CBA went from closing accounts belonging to legislate businesses to offering the same services a few years later.

        Commonwealth Bank closes CoinJar's business and founders' personal accounts
        Commonwealth Bank has closed the bank accounts of the founders of Australia-based bitcoin wallet CoinJar.
        By Emily Spaven
        Aug 16, 2013 at 3:19 a.m.
        Updated Sep 10, 2021 at 9:29 p.m.
        https://www.coindesk.com/markets/2013/08/15/commonwealth-ban…

        "Gradually, then suddenly." E.H.

        • deme on 11/11/2021 - 15:55

          Thanks for addressing the concern of paying fees to withdraw cash in 2021 on a bargain site.

          • rektrading on 11/11/2021 - 16:14

            @deme: I guess we're different in that I prefer to pay the miners to process my Tx than legacy banks that keep cutting costs to artificially pamp up profits for their stonkholders.

            https://youtu.be/OuAW_wWDDjM

            • deme on 11/11/2021 - 16:20

              @rektrading: I don't pay to withdraw cash, you've been on OzBargain long enough to know which cards don't need to pay fees.

              PoW is such a waste, PoS is far better.
              Banks are doge af, don't get me wrong the promise of cryptocurrency is definitely ideal.

  • deme on 11/11/2021 - 15:40
    +2

    OP please you've gone from running a juice stand

    to this

    to bragging about gains in a watchlist

    and finally to this thread where you want to start a Bitcoin ATM business while stating if they are selling Bitcoin to the machine they can avoid tax..

    I'm waiting for the next idea you have.

    • [Deactivated] on 11/11/2021 - 16:06
      +1

      The juice stand I was toying with the idea, oranges are too expensive.
      I wasn't bragging about the gains I was validating the strategy, but I did make 66.67% gains on LPDOB after posting
      My next idea is in the 3D printing and additive manufacturing space, keep tuned.

      • Heaps for Cheaps on 11/11/2021 - 17:16
        +1

        "My next idea is in the 3D printing and additive manufacturing space, keep tuned."

        Everybody has awesome 'ideas'… It's the execution that matters.
        Do you have the skills, technology, resources to make these ideas into a reality?…

        Only time will tell…

        • [Deactivated] on 11/11/2021 - 19:58

          Judge for yourself…
          https://3dmake.com.au/landing

          • brendanm on 11/11/2021 - 20:27
            +1

            @[Deactivated]: That's a website with no information, and all the people in "browse printers" are fake examples?

            • [Deactivated] on 11/11/2021 - 20:44
              -2

              @brendanm: It was just an MVP, work in progress but file preview, submission and printer listing does work.

    • MrThing on 11/11/2021 - 16:54
      +1

      OP is a serial pest

  • [Deactivated] on 11/11/2021 - 23:24

    With Commbank letting people directly buy Crypto in the app soon I wouldnt be in a rush to start a Bitcoin ATM business tbh

    • rektrading on 11/11/2021 - 23:46

      It's unlikely that the CBA will allow users to self custody their assets from the get-go.

      BTM allows users to Tx to self custody wallets which is what they should always do.

    • [Deactivated] on 12/11/2021 - 12:56
      +1

      Yes this is a risk, but they aren't starting till 2022 and are just partnering with Gemini which is an Online exchange not bitcoin atm

  • gee-man on 12/11/2021 - 08:36

    Do you have a KYC/AML process? Because when the Federales come knocking it’ll be too late to come up with it then.

    You’re allowing people to put cash in and get that value added to a wallet that takes all of 2 clicks and no verification to set up. That’s the problem with these ATMs, as far as the banks and feds are concerned.

    • [Deactivated] on 12/11/2021 - 12:50
      +1

      Yes in the process of registering with AUSTRAC

      • gee-man on 14/11/2021 - 11:38

        How are you confirming identity for KYC?

        • [Deactivated] on 15/11/2021 - 00:54
          +1

          Scan of Driver's License or Passport, which is matched with Camera photograph of customer
          Then verified with a third party

          • rektrading on 15/11/2021 - 07:48

            @[Deactivated]: That is too invasive.

            This means that people that don't have ID are excluded from buying and owning digital assets.

            • [Deactivated] on 15/11/2021 - 10:18
              +1

              @rektrading: It's not up to me its a legal requirement to operate

            • gee-man on 16/11/2021 - 08:16

              @rektrading: Government wants to know who you are, goes for bank accounts, credit cards, online gambling, the list goes on.

              People who don’t have ID get shut out of a large part of the banking & finance market, but if you have money to buy a speculative asset like crypto you can afford a drivers license.

              • rektrading on 16/11/2021 - 09:06

                @gee-man: Owning personal property is a human right.

                Digital assets at their core are permissionless and decentralised. This means anyone regardless of their reason why they can't produce an ID has the right to own and use it.

                There are countries in the world where people can buy small amounts of assets with only their phone numbers. Countries that insist on using invasive barriers to make ownership difficult is ngmi.

                • gee-man on 17/11/2021 - 10:21

                  @rektrading: I appreciate where you're coming from, but the Government of the day makes the rules, and if they want to know who your customers are, and you don't want to tell them, they'll shut you down. But not before the banks stop servicing you because while they only want to follow some of the rules some of the time, it's never in your favour.

                  Of course anyone can own crypto. You can mine it, swap it for a pizza, buy it for cash off some guy, but as soon as you do it as a business the AUSTRAC/KYC/AML rules kick in. No way around it if you're part of Australian society.

                  Not to mention that 'rights' are a complicated thing.

  • Zachary on 12/11/2021 - 09:43

    So you're gonna start your own bank where anyone can deposit or withdraw bitcoin or exchange cash for bitcoin and vice versa via an ATM?

    • [Deactivated] on 12/11/2021 - 12:51
      +1

      Not really it'll be ATM's placed in retail locations

      • Zachary on 01/12/2021 - 20:12

        What do these ATMs do?

  • ZmbHntr on 12/11/2021 - 11:29

    Could be worthwhile looking at ING bank. I recall a few years back they were making some collaborations in crypto. Their parent company is in the Netherlands. The Australian based banks seem to have a bad reputation in being crypto friendly.

  • [Deactivated] on 12/11/2021 - 12:53
    +1

    I have opened an Business Transaction account with CBA online, following the phone agents advice and Listing it under my sole trader name

  • Hargen on 12/11/2021 - 14:34

    Probably get Austrac accreditation first? You could be wasting everyone's time if you dont have that.

    • [Deactivated] on 13/11/2021 - 00:29

      Yes I've applied but am waiting 90 days to get it approved

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