Lately, businesses are finding it increasingly difficult to buy bitcoin. For example, according to reports, more than 60% of companies are facing refusals from banks to make payments to cryptocurrency exchanges, and the processing time for exchanges has doubled due to additional checks. New laws, strict regulations for banks and other obstacles are preventing companies from using cryptocurrency. In this article, we will explain why this is the case and tell you how our firm found a way out of this situation.
Why did it become a problem?
1. New regulations
To combat money laundering, strict AML (anti-money laundering) and KYC (know your customer) laws have come into place.
This means that companies must:
Tell everything about their operations and owners.
Explain why they need bitcoin.
Prove where the money came from.
2. Banks are against cryptocurrencies
Many banks don’t want to make payments to cryptocurrency exchanges. Why?
They are afraid of breaking laws.
They might get fined.
They don’t understand how cryptocurrencies work and consider them risky.
3. Problems with exchanges
On exchanges like Binance or Kraken, companies have to fill out a lot of paperwork, such as incorporation documents, director and owner details, financial statements, and explanations of the purpose of using cryptocurrencies.
And if the firm is from a sanctioned country, exchanges can deny service.
4. Politics of States
Some countries want to control all money, so they:
Restrict the use of cryptocurrencies.
Promote their digital currencies.
Block ways to transfer money through bitcoin.
Our way: exchange via R&D
We found a way around these complications.
This method was effective for us because it allowed us to maintain access to bitcoin without the direct involvement of banking systems and crypto exchanges.
Thanks to tax incentives for purchasing research and development (R&D) equipment, we minimized costs and complied with all legal requirements.
This has enabled us to legally and safely exchange goods for cryptocurrency.
Our company buys specialty research and development (R&D) goods and then sells them for bitcoins.
Here’s how it works:
How we do it:
We buy goods with incentives
For research, we can buy equipment and materials at reduced taxes. This is beneficial and legal.
We sell for bitcoins
We sell these goods to customers who are willing to pay in bitcoins.
We don’t make money on this – we only care about exchanging goods for cryptocurrency.
We keep track of the paperwork
We formalize all transactions to avoid legal problems.
Why it works:
We don’t transfer money directly to exchanges.
This reduces the risk of having your bank account blocked.
It’s legal. The use of tax benefits for R&D is fully compliant with the law.
Less risks. We don’t break the rules or come under strict scrutiny.
Bottom line
Buying bitcoin for companies has become really difficult due to new laws and restrictions. But despite this, it is possible to find legal and convenient ways. Our experience shows that a strategy using R&D is a great option. It allows you to work with bitcoin safely and within the law.
We believe that the ability to adapt is the key to success in a world where cryptocurrencies are becoming increasingly important for business.
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