Business Accounts & Bitcoin


#1

Hello,

Your Business FAQ page says:

Unfortunately, Revolut for Business is not currently available to businesses operating in the following higher risk industries:
[…]
N/A Cryptocurrencies

Any reason? Seems like you are pretty crypto-friendly, working to integrate BTC into your app, so that statement is fairly surprising.

Is that a strict no-no, or are you open to case-by-case considerations, if for example the business can prove that it does KYC and/or registers for UK AMLS?

Points I’ve been researching:

Taxation

The UK government acknowledges crypto, namely stating these two tax-related facts:

  • when Bitcoin is exchanged for Sterling or for foreign currencies, such as Euros or Dollars, no VAT will be due on the value of the Bitcoins themselves
  • charges (in whatever form) made over and above the value of the Bitcoin for arranging or carrying out any transactions in Bitcoin will be exempt from VAT under Article 135(1)(d) as outlined at 2 above

(source gov.uk)

Money laundering

The relation between Anti Money Laundering and Bitcoin is not defined (source Apr. 2017), however as responsible businesses we choose to do KYC on a voluntary basis to make sure we know where money comes from and be able to report should there be any investigation.
Would that cater to you?

I will be happy to hear more from you on this matter.


#2

Appears to be a blanket prohibition at the current time.

https://blog.revolut.com/how-revolut-are-leading-the-way-with-cryptocurrencies-462df9c822b1

Due to the lack of regulation, consensus and unified support there is still a lot of uncertainty within the industry — with many companies simply choosing not to embrace crypto at all until regulation evolves.

With this in mind, we have developed an alternative phased approach


Companies that deal with cryptocurrencies and other digital assets do tend to have a heightened KYC/AML risk.

Given how financial institutions (whether retail or investment.) have a role to play in ensuring the integrity of the global financial system, Revolut seems to have taken a stance in not allowing business operating in the area to sign up for Revolut for Business.

Individuals appear to be liable for capital gains tax on any capital gains.

There is no direct causal link (in the sense that, cryptocurrency activity = 100% illicit.). However… as anyone interested in the area is aware, there have been a lot of headline ‘bad’ activity associated with it in recent times.


Best direct message @andriusb about this.


Any crypto exchanges accepting revolut SEPA?
#3

Thanks for the detailed answer sir. Clears any doubt.

There is no direct causal link (in the sense that, cryptocurrency activity = 100% illicit.). However… as anyone interested in the area is aware, there have been a lot of headline ‘bad’ activity associated with it in recent times.

Companies are fully liable for their wrongdoings, including illegal activity be it carried out using crypto… or fiat.
There have been headlines of people making a wrong use of knives, yet Ikea did not struggle to open a business account.

Hope Revolut’s position will evolve and they’ll adopt a Revolut-ionary stance on these matters!


Any crypto exchanges accepting revolut SEPA?
#4

I don’t work for :r:, so if you want to talk to their Revolut for Business/business development team, best talk to @andriusb or use other channels.


Yes and no.

Liability attribution for corporations can be left wanting in many circumstances.

For example, the Corporate Manslaughter and Corporate Homicide Act 2007 (http://www.legislation.gov.uk/ukpga/2007/19/introduction) is not fit for purpose, because the threshold for a successful conviction is too high (In terms of tracing the chain of causation through the organisational structure.), and the criminal conviction will not be corporeal but against a legal person.

This is a false argument.

Cryptocurrencies, whether designated as virtual assets, non-securities or whatever, is a store of value. Therefore it can be use for the purposes of money transmission. Money transmission that circumvents KYC/AML policy will put the integrity of the global financial markets at risk.

In addition, KYC/AML regimes are preventative schemes, whereby they try to prevent situations from arising in the first place. If illicit funds enter the global financial system, and mixed in it, by the time the perpetrators have been found, and tried in court, it would have been far too late.


Any crypto exchanges accepting revolut SEPA?