P2P trade advise

[danilo1]

Hello, for the past 2 weeks I am being redirected to 395 different authorities and banks for me to complete the procedure to become P2P trader.
Long story short, I have some crypto, willing to sell via P2P platforms, but the bank that I use prohibited me from using their account for this.
I called few other banks in my country and they are telling me that I need VASP license to trade crypto. (?)
I searched for VASP license and it it really complicated and not worth for me as I will need to register a company, invest in shared capital, appoint AML officer etc.

Is it really that hard to start P2P trading? I see tons of people on Binance trading P2P. All of them have VASP license? or they are hiding income with banks?

I want to do everything legally, according to all procedures. I have explained to bank that I am not a crypto exchange or smth to obtain either VASP license or open business bank account.

I am from Estonia. I can travel to few countries to open bank account. I am willing to continue P2P trading even after I sell my initial crypto.

I need your advise, where to open bank, which bank. Is there any document I can show to my bank that will persuade them that I don't need VASP license?

Thank you in advance.


P.S. Scammers stay out of my PMs

[jeraldskie11]

I've been trading in Binance P2P for many years now, I don't encounter such issues. I don't think if it's just in your Country, because here in my place all is well in terms of P2P trading. Binance provided an instruction how to post an ad and they provide the criteria how to become a verified merchant. And because what I'm doing is to withdraw from them, I just need to find an ad. And since your problem is about the bank you're using, try to make up with another banks because afaik there are lot of method to send the payment.

[SamReomo]

I have done many p2p trades on Binance and I had no issue with any of those trades but surely the matter you discussed is different from what I have been doing. I have basically made p2p trades with merchants in order to convert my crypto to fiat but never ever did something that merchants do.

I believe it's allowed to be a p2p merchant in many countries but surely in some countries there could be some restrictions and rules. I believe p2p trading on Binance can be done smoothly from UAE without any issues, however I'm not sure if they also want a similar VASP license or not.

I suggest you to contact someone in UAE and ask them that how one can create an e-bank account of that country if he/she isn't living there? If something like that is possible then I'm sure you'll be able to p2p trade with a bank account. By the way, you can do p2p trading with online payment gateways if I'm not wrong.

[Dunamisx]

Long story short, I have some crypto, willing to sell via P2P platforms, but the bank that I use prohibited me from using their account for this.

If cryptocurrency is prohibited in your country and the banks were not allowed to engage on anything related to that, then you don't have to worry yourself, since what we are considering is a p2p network, just make use of a decentralized exchange to perform it and avoid the use of banks or any other government centralized means that could render you into trouble with the government law.

[Sim_card]

OP, first of all is crypto legal in your country, is Binance operation also legal in your country. These are things that you should put into consideration, because I don't see why you need your bank before you can be a p2p merchant in your country. It is some KYC verification that you need to do, and you don't need to tell your bank that you want to use your bank account for p2p trading, because they will not accept. Your business should be with your ads in Binance and from which bank account that you will use to credit your p2p transactions. There is a serious warning down here in my country on digital assest that anybody that uses his/her account for cryptocurrency account will be feezed. But we are still have p2p trade very active. Banks cannot monitor where you are sending your money to or receiving from if it was from cryptocurrency or not a, because you are paying directly to the seller or the buyer's account through p2p.

[electronicash]

crypto is legal in Estonia. and you don't need to register a company and have a VASP license since all you want to do is exchange your crypto to EUR.

you just have to register to an exchange like binance and go to the p2p where you set to receive EUR for your BTC. the bank likely won't know whether you trade BTC but money will be deposited by someone who bought your BTC on the p2p platform.

[jrrsparkles]

Hello, for the past 2 weeks I am being redirected to 395 different authorities and banks for me to complete the procedure to become P2P trader.
Long story short, I have some crypto, willing to sell via P2P platforms, but the bank that I use prohibited me from using their account for this.

It's just your bank doesn't want you to trade crypto currency and they do even if crypto is not banned in certain countries so better find another bank account and try doing p2p and there should be no problem. Most people you find in p2p platforms doesn't want their Bank to know this is funds from crypto trading so I wonder how banks actually found that this is coming from crypto trading in the first place.

[Potato Chips]

I doubt most merchants in binance p2p have VASP.

From your story, it appears your country and/or local banks are stricter than others. However, it's possible there could be gray lines to this such as off shore banks perhaps? One way to know for sure is to consult a lawyer whose familiar with cryptocurrency and laws around it.

[logfiles]

Long story short, I have some crypto, willing to sell via P2P platforms, but the bank that I use prohibited me from using their account for this.
I called few other banks in my country and they are telling me that I need VASP license to trade crypto. (?)
I searched for VASP license and it it really complicated and not worth for me as I will need to register a company, invest in shared capital, appoint AML officer etc.

Just so you know. Almost all banks hate crypto, most especially p2p trading.

You are literary taking away the revenue from them, so they will do anything to fight back. My country is not so strict when it comes to cryto trading but when it comes to p2p trading. I made all my bank accounts are never linked to any p2p trades.

Is it really that hard to start P2P trading? I see tons of people on Binance trading P2P. All of them have VASP license? or they are hiding income with banks?

Most are obviously hiding the activities from the banks.

I want to do everything legally, according to all procedures. I have explained to bank that I am not a crypto exchange or smth to obtain either VASP license or open business bank account.

You won't win that war if you are a retail trader. if You want to do everything "legally", then you will have to obtain a VASP license.

I am from Estonia. I can travel to few countries to open bank account. I am willing to continue P2P trading even after I sell my initial crypto.

if you go to those countries as well and try to do things "legally", you may still be forced to get a VASP Licence by the banks in those countries too

I need your advise, where to open bank, which bank. Is there any document I can show to my bank that will persuade them that I don't need VASP license?

I doubt there is any.

[Ben Barubal]

Hello, for the past 2 weeks I am being redirected to 395 different authorities and banks for me to complete the procedure to become P2P trader.
Long story short, I have some crypto, willing to sell via P2P platforms, but the bank that I use prohibited me from using their account for this.
I called few other banks in my country and they are telling me that I need VASP license to trade crypto. (?)
I searched for VASP license and it it really complicated and not worth for me as I will need to register a company, invest in shared capital, appoint AML officer etc.

Is it really that hard to start P2P trading? I see tons of people on Binance trading P2P. All of them have VASP license? or they are hiding income with banks?

I want to do everything legally, according to all procedures. I have explained to bank that I am not a crypto exchange or smth to obtain either VASP license or open business bank account.

I am from Estonia. I can travel to few countries to open bank account. I am willing to continue P2P trading even after I sell my initial crypto.

I need your advise, where to open bank, which bank. Is there any document I can show to my bank that will persuade them that I don't need VASP license?

Thank you in advance.


P.S. Scammers stay out of my PMs

     Many exchanges have p2p features, and the first ones are Binance, Bybit, Okx, Bitget, Gate.io, Xt.com, and Bing X. It's up to you which of them you want to try. I can only remind you that all of these must be your verified accounts.

     Because that is one of their rules so that you can make a complete transaction with them, but always, if Binance is not banned or restricted in your country, it is better; the rest is an option reserved for you if ever the Binance platform is not possible there.

[SilverCryptoBullet]

Hello, for the past 2 weeks I am being redirected to 395 different authorities and banks for me to complete the procedure to become P2P trader.

Become a P2P trader is not too difficult like this.

Open your account on a P2P platform. Some platforms allow you to start trading without KYC but they have terms for KYC when your total trading value exceeds their limit for free KYC account.

If they require KYC, you can start trading after finish your KYC.

It's not difficult and barrier is do you want to KYC or don't want to KYC.

With P2P tradings, risk is high because you can be victim of scammers and of money laundering. Don't trade with new accounts and with offers that are too good to be true. Trading with those trade partners P2P will cause more risk to trade with scammers and with unclean money.

[Adams0001]

Hello, for the past 2 weeks I am being redirected to 395 different authorities and banks for me to complete the procedure to become P2P trader.
Long story short, I have some crypto, willing to sell via P2P platforms, but the bank that I use prohibited me from using their account for this.

It's just your bank doesn't want you to trade crypto currency and they do even if crypto is not banned in certain countries so better find another bank account and try doing p2p and there should be no problem. Most people you find in p2p platforms doesn't want their Bank to know this is funds from crypto trading so I wonder how banks actually found that this is coming from crypto trading in the first place.

If a bank refuses to allow you to trade cryptocurrency, it signifies that it is illegal in the country, which is why they avoid it. Because banks collaborate with the government, they adhere to what the government says and support him. Many countries do not want cryptocurrency to operate in their country because they cannot control it and do not want to receive something over which they have no control. Even my country dislikes crypto traders and my bank can be in trouble, and I don't want to include them in my p2p trading since they despise crypto currency because they don't get anything out of it, which can not leads to cheating. Because if government get access to it he will be very difficult to find peace they most do corruption for there personal gain. When you use a p2p exchange, it will be tough to find a bank that knows where your money is coming from unless the merchant makes a mistake and leaves a note or comment, but I do not believe you will have any problems if you use a p2p exchange.

[btc_angela]

As others have said, it's easy to do P2P using Binance, you just have to be careful who you dealing with, maybe they are scammers so take every precautions like look at the history of their trades and just don't released your crypto unless it's in your wallet.

For the banks, it might be complicated though, not sure how banks are in your country are or how they are friendly. Perhaps the best thing is just open a regular bank and don't tell that you are a crypto trading or you deal with crypto. And if ever you do P2P then just withdraw the money in fiat and then deposit it in the bank.

[Text]

Explain to your bank that you're a P2P trader, not operating a crypto exchange or holding customer funds. Mentioning the lower-risk nature of P2P trading might be helpful.

Not everyone trading P2P on platforms like Binance necessarily has a VASP license. Many users trade smaller amounts and may not fall under the same regulatory scrutiny.

As for banking, LHV, one of the largest banks in Estonia, has started offering cryptocurrency trading directly from its app through crypto exchange Bitstamp since 2021, I’m not sure if it is still the case now. This might be a good option for you to consider.

[Z_MBFM]

I've been trading in Binance P2P for many years now, I don't encounter such issues. I don't think if it's just in your Country, because here in my place all is well in terms of P2P trading. Binance provided an instruction how to post an ad and they provide the criteria how to become a verified merchant. And because what I'm doing is to withdraw from them, I just need to find an ad. And since your problem is about the bank you're using, try to make up with another banks because afaik there are lot of method to send the payment.

Bitcoin is illegal in my country so here Bianance and Kucoin p2p is the only way to cash out crypto so I have been using Binance p2p for many years. But I haven't faced any problem till now because I am always careful and always double check the payment information and double check after receiving the payment and then release the crypto so I haven't faced any problem till now. I have heard of my friends falling victim to scams from time to time but this has never happened to me yet. I think if everyone does p2p transactions with caution then he won't have to admit to a bad experience.

[AYOBA]

This issue has been going around in this our county since, and this problem is not from the banks, it is what they told them they were doing because it is the federal government that gave them the order that any bank's activities that involve in a cryptocurrency aspect will be permanently banned, which is why so many banks are protecting themselves.

Because they don't want to fall under the watchful eye of the government, and that's why we can see most of the commercial banks are always placing a short note in the front of their bank that doesn't involve your account in any cryptocurrencies is prohibited, but my question is that this one that the government is trying to ban all the p2p on every platform, how he wants make the youths survive, and him refuses to provide jobs in county, and is trying to cancel all the ways that many people are surviving and also put food on their tables. 

[jrrsparkles]

Hello, for the past 2 weeks I am being redirected to 395 different authorities and banks for me to complete the procedure to become P2P trader.
Long story short, I have some crypto, willing to sell via P2P platforms, but the bank that I use prohibited me from using their account for this.

It's just your bank doesn't want you to trade crypto currency and they do even if crypto is not banned in certain countries so better find another bank account and try doing p2p and there should be no problem. Most people you find in p2p platforms doesn't want their Bank to know this is funds from crypto trading so I wonder how banks actually found that this is coming from crypto trading in the first place.

If a bank refuses to allow you to trade cryptocurrency, it signifies that it is illegal in the country, which is why they avoid it. Because banks collaborate with the government, they adhere to what the government says and support him.

Not necessarily, banks disallowed crypto-related funds even if its regulated in a country.

For example in UK crypto is legal and regulated still banks refuse such as 47% of UK Banks Don’t Allow Customers to Interact with Crypto Exchanges which means banks are allowed to have their own policies despite the government's legal status of an asset. That is why my suggestion remains still valid if he belongs to a country where crypto is neither legal nor illegal.

[Ndabagi01]

The last time I checked when you want to start up a p2p trading on binance platform, it doesn’t require all this tedious step and it’s one of the exchange that have well explained how you can start up your p2p trading without much trouble to make it tedious for you. Banks will not even know that you’re involved in p2p transaction if you don’t make it known to them while putting a note as reference to that transaction. Estonia is not a country that frown against cryptocurrency and make it unbearable for their citizens who are using them. You must have mixed up something that makes you to be undergoing all this stress with bank. Just go back to your binance platform and watch the video tutorial to guide you on how to start up your p2p business on Binance.

[batang_bitcoin]

As far as I know, the VASP license is only applied for the exchanges. Yes, the big ones that we know and you as an individual trader, I don't think that you need to get one. Do not listen to that bank, you only need an account and get verified in any exchange that you're going to use.
You don't ask to a banker to get into crypto, you ask to a crypto enthusiasts how to get into crypto. Because the bankers will just mislead you and that's really happening in many banks that they give odd and opposite advises so that an aspiring one will get discouraged.

[Zigabel]

I don't know the volume of assets you want to trade that has made you gone through all of this, secondly I don't know what the rules in your country is that has stopped you from been able to transact as you want to, and in your words legally. Now sometimes doing things legally can have some relativity attached to it and one of which is using a better alternative which isn't totally prohibited by the law as probably no provisions for such may be found in the law. My advice is simple make use of a decentralized exchange and we have so many of them who are willing to accept every volume of transactions you want to carry out provided you do your KYC with them, you don't need all the license because I'm sure you are not opting to start up your own exchange either. Search for exchanges of such in your region and register with them than do whatever is required of you and navigating the exchange you will see a platform for P2P and you are good to go, needless of a license.