Client case: how we launched crypto exchange in 2024

Cryptocurrency business is one of the most profitable among online projects, and therefore it attracts more and more investors over years. We have also supported this industry and provide services to crypto projects during their formation and further operation.

Today, we will discuss one of many cases of our clients. We will not disclose detailed figures and company name due to the NDA agreement, but we will explain in detail what to expect from working with us and how we typically structure our collaboration. Any additional questions you may ask during a consultation. To arrange, please email or contact us via Telegram.

What was the client request?

Cryptocurrency today generates genuine interest among many people, and solid number of crypto exchanges is even difficult to count. At the same time, many products in the CIS market operate without a license, at their own risk, and cannot be fully trusted. Our client wanted open international crypto exchange with a license that would allow to operate in the EU, provide quality services, and be a trustworthy partner for their clients.

Currently, there is a wide choice of countries for licensing crypto projects. Each has its own complexities, advantages, and disadvantages that need to be assessed before launching. The task was to launch as quickly as possible and test entire business model, attract first clients for exchange, and test the main functions of platform. After discussing the client's plan and budget, we settled on the option of Virtual Asset Service Provider (VASP) license in Poland. The reason for choosing this jurisdiction was simplicity and speed of obtaining the authorization document. Although Poland does not issue licenses but rather crypto authorizations, this simplifies all process of applying for and obtaining permission for work with cryptocurrency. However, this does not significantly affect the freedom of entrepreneurs, and after obtaining such authorization, one can confidently start providing services of storing, buying, selling, and exchanging crypto assets.

Our task was to provide a ready-made structure for operation that would not require additional movements. Therefore, we had to do everything turnkey.

How we approached the task

First, we outlined for the client timelines and stages of our work so that the procedure was transparent and understandable, as well as all payments. We had an experience with same structures, so we knew exactly where to start and what information we would need from our client. Outlining the plan, it became clear that all work would be done in several stages:

• Opening the company and obtaining authorization;
• Opening a bank account (in our case, several accounts);
• Connecting liquidity partners and payment systems.

Since we have significant experience in fintech, it was not difficult for us to suggest how long each of these stages might take. The company opening went smoothly, and within a few weeks, we were able to provide a fully ready structure to use for signing contracts with marketing partners, ensuring support, and hiring employees.

However, opening IBAN account for a crypto startup always requires extra effort, today even more than before. The nature of activity raises many questions from traditional financial institutions, and increase in the number of fraudsters in this field must also be considered. To avoid associating with a dishonest organization, any bank or EMI conducts multi-stage compliance, which can take from several weeks to even several months, depending on how well document package is prepared and client's infrastructure built. Each element of the structure can raise a series of questions, and there must be an exhaustive answer to them.

Since we already have experience in this industry, we immediately began to address the main weaknesses: AML procedures and contractual relationships. Security of a crypto exchange or trading website is always the number one concern, both for clients and partners. To open IBAN account for crypto company, we need strictly follow all regulatory requirements and ensure the security of crypto platform for users. We know exactly how to do this and how to correctly present information about such a service. In compliance, 50% of success lies in ability to communicate and accurately describe services your company provides. Since compliance managers cannot understand all business models in depth, it is important to clearly provide information and not make things up on the spot or hide important facts. After all, the account can be closed later when these facts surface during the cooperation.

This is why we always recommend entrusting opening of IBAN account to professionals, and if there are no such specialists in your team, contact us! We understand that for many companies, opening bank account happens once or twice during the entire operation, so hiring an internal specialist may not be actually justified. In this case, outsourcing this task is an excellent solution that allows not only to resolve the issue quickly but also to avoid many problems that arise here due to a lack of experience.

What result did the client achieve?

Let's outline the final result that our client got from working with us:

• A ready-made company with Polish VASP license;
• A complete set of necessary documents;
• wo open IBAN accounts in Europe for receiving funds from clients and direct exchange operations (B2C);
• AML procedures, policies, and KYC tools;
• Company and service policies;
• Accounts with liquidity providers and other crypto services for conducting own operations;
• Further support and assistance with reporting and payments.

We completed the entire project in 4 months, including obtaining all documents and opening all IBAN and payment accounts. Since the client was working on developing his exchange platform during this time, and some issues could depend on technical components, we agreed to do the tasks gradually at a pace that suited our client. Given the urgency, all legal and payment issues can be resolved twice as fast. Therefore, if you have everything ready and the only thing left is payment systems, you can expect a faster timeline.

In the future, we also provide consulting support and perform tasks that may arise from time to time for business expansion or changes in direction. 

What exactly can we do for you?

• Optimize payment approval ratio and everything related to it. Work in this direction can be challenging, but we definitely know its result. Regardless of whether you have recently started business or have been doing it for a while and have already learned a lot on your own, we have something to offer you.
• Build everything correctly from the start. Since we help with the opening of legal entities, Monoup can launch your project turnkey. We can open a company, bank account, set up payment systems, and provide recommendations or assistance in implementing the website itself.
• Open accounts in banks, EMIs, crypto exchanges, or other financial institutions for your company. We handle all compliance and deliver a ready-to-use account.
• Test payment systems and methods, flow, and technical paths to achieve a “wow effect" at the end.

We work with projects in the industries of iGaming, affiliate marketing, crypto, gaming platforms, and other IT businesses. To contact us, text us an email or via Telegram!