How will you benefit from having a bank account?
A Fiat bank account will give you multiple advantages, including but not limited to the following opportunities:
- to perform non-crypto related activities while waiting for a granted licence from the regulatory authorities;
- hire local employees and transfer payroll from your bank account;
- pay your suppliers (so you prepare marketing activities, advisors, and contractors to conquer a new market fast);
- link your fiat bank account to your fiat-crypto gateway and collect fiat from your end customers on your bank account.
If you have a license in non-Asian jurisdiction or a separate legal entity in a jurisdiction that does not require license for services you offer to the market, our team will consult you on a business model on how you can benefit from a corporate bank account in Asia.

Traditional bank VS digital bank account
The choice of a bank depends on your business needs. We use an individual approach to every business: after a brief analysis of your business plan, our professional team prepares a short list of recommended banks.
Having an account in a digital bank has a number of advantages:
- The procedure of account opening is fast and cheap,
- The requirements for the company to open an account are pretty simple,
- Some digital banks implement cryptocurrencies into their services, allow to link fiat accounts with digital wallets;
- Digital banks use cloud computing; the cloud can be accessed from any device that can use the internet, allowing users to access their bank accounts via mobile phones, computers, laptops, and other devices - making digital banking potentially much more versatile than traditional banking;
-Digital banks use big data, documents, and information that are all digitised, whereas traditional banks tend to rely on physical documentation. Big data and machine learning programs are used to secure your account as big data banking algorithms allow the spot to spot unusual spending patterns.


Having an account in a traditional bank has such advantages:
- A traditional bank can open and maintain bank accounts for clients with licences to provide payment processing services, money-changing services, and other related services. Digital banks usually are not capable of providing the full range of services that your business in the payments segment needs for operation;
- Traditional banks are more reliable in security. Digital banks tend to rely on cloud computing - a centralised system. If a hack is conducted, a huge number of clients of a digital bank will not be able to access the system or could even lose all of their stored funds. Although these threats aren’t likely to happen, the risk should not be neglected;
- Traditional banks usually have insurance plans for the funds of their clients.
Whether you choose a digital or a traditional bank, an account opening process will not require you to fly to a bank branch.


Which documents are required to open a bank account?
A list of required documents differs from one bank to another and usually includes corporate documents, identity cards of UBOs and director(s), license(s) or confirmation of a submitted license application to the relevant authorities, information about business activities and annual turnover, about planned inbound and outbound transactions for this new bank account.
Digital banks may require you to install a mobile application and to go through KYC verification for UBO(s) and directors from your phone using your camera.

How will you benefit from a merchant account with local PSPs in Asia?


Merchant accounts with local PSPs in Asia will give you multiple advantages, including but not limited to the following opportunities:

- You can enable locally popular payment methods, such as Alipay for China, PayNow for Singapore, DuitNow for Malaysia, PromptPay for Thailand, e-wallets GoPay, OVO, and Dana for Indonesia. Local users will appreciate an option to pay from their favourite mobile apps or e-wallets instead of using complicated wire transfers.

- A local PSP directly converts your customer's local currency to a currency you choose for settlement. So you will avoid double conversion through USD or EUR, which is typical for global PSPs with US/EU-based headquarters.

Do Asian PSPs support cryptocurrencies?
Our team knows several PSPs that support cryptocurrencies and will check for you the opportunity of onboarding them in your specific case. But most local PSPs only process fiat currencies and target e-commerce businesses. If your business requires having both fiat and crypto currencies, we can also assist you in finding a crypto liquidity provider. All that your development team will need to do is connect fiat processing and crypto liquidity on your side.

Which documents are required to open a merchant account?
A list of required documents differs from one PSP to another and usually includes corporate documents, identity cards of UBOs and director(s), license(s) or confirmation of a submitted license application to the relevant authorities, information about business activities and annual turnover, about planned transactions for this new merchant account.

For businesses connected with digital assets after company formation and a fiat bank account in Asia, the third crucial question is to link fiat assets with crypto assets.
While some Asian digital banks support digital assets and the most famous European bank with crypto services, Revolut, recently got a license in Singapore, your business might need its own crypto liquidity.
When your business applies for a license that covers fiat services only, your primary corporate account should be used precisely for the services mentioned for your license.
With a corporate fiat account in a traditional bank and a corporate crypto account on one of the top exchanges, your business can legally operate with both types of assets.
Our team offers you to open corporate accounts on reputable crypto exchanges from the top-30 list on Coinmarketcap.


Which documents are required to open a corporate crypto account?
A list of required documents differs from one crypto exchange to another and usually includes:
- corporate documents;
- identity cards of UBO(s) and director(s);
- address proof documents for UBO(s) and director(s);
- whitepaper (if you issue tokens);
- legal opinion (to answer the question if your token is a security or not in accordance with the Howey test);
- information about current business activities and annual turnover;
- Certificate of good standing for the company;
- Source Declaration confirmation documents, including the Source of Capital, Wealth, and Funds.
In case you need to update your Whitepaper to be compliant with crypto exchange rules or in case you need to have a legal opinion from a certified lawyer, our professional team offers these services too.

The procedure to open a corporate account on a crypto exchange consists of the following steps:

1. Review your business model and choose the most suitable crypto exchange.
Our team will advise you on the most suitable crypto exchange based on your target countries, liquidity volumes that you need, and your current legal documents and match with crypto exchange onboarding requirements.

2. Collecting necessary documents.
After the initial choice of the crypto exchange, we will ask you to fill out the questionnaire (On-Boarding form) and to send us the documents required for corporate crypto account opening.

3. Registration
on the crypto exchange on behalf of your company, passing KYC and verification
process.

4. Communication and coordination with the crypto exchange till the account is open.

Sino-Fintech team also provides operational assistance and support after the account is open.

What are the crucial points in crypto/fiat conversion in local currencies in Asia?
1. It is hard to find a solution with settlement in local currencies directly with double conversion through USD or EUR. So, it may cause conversion losses.
2. Compliance rules for acquiring banks might be complicated.
3. It is challenging to build a business model with enough liquidity of both fiat (local currencies) and cryptocurrencies for instant conversion.


Possible options for fiat/crypto conversion
1. To develop your own crypto-fiat gateway
This solution is the most difficult in technical realization and legal requirements. It makes sense to start development if you currently cover your needs with third parties solutions but are unsatisfied with the commission rates. When you have your own crypto-fiat gateway, you do not need to pay any commissions; you use the rate from exchange (if you convert through exchange) or use your own rates directly (if you have enough liquidity in both crypto and fiat). In short, this solution requires investments in development, hiring an in-house IT team outsourcing the development. But in a long-term perspective, with big exchange volumes, it will be beneficial
Advantages: A) No commissions to third parties; B) Your own technical solution that you can license out to other companies and generate extra revenue from license fees.
Disadvantages: A) High development costs; B) Full liability to clients for the technical functionality (you should implement proper IT security measures, manage a custodian wallet and insure your funds); C) Necessity to have a license for fiat-crypto exchange.
Sino Fintech services: Due diligence, legal opinion on the question if your business is ready to have its own crypto-fiat gateway. Besides, we can give references to professional IT companies from our network (in case you do not have your own team).
2. Integration of third parties solutions (acquiring, e-commerce)
In case you do not have the technical capacity for a crypto-fiat gateway on your side, you can build partnerships and install API solutions from regional partners.
Advantages: A) Low development costs on start, easy integration; B) Strong partnerships for different regions; local partners are more familiar with trends on the market and easily adapt to changes in local legislation.
Disadvantages: A) High commissions; B) Dependence on partners (you always need to have options for replacement in case they terminate the contract for any reason or in case of low quality of their services; C) Possible integration fee at the start.
Sino Fintech Services: Searching partners upon your request in accordance with your criteria (currencies, jurisdiction, functionality, technical requirements, if any). Legal assistance during the onboarding process, KYC/KYB. After successful onboarding, we receive a contract template from this potential partner, review it and negotiate better conditions if required. Assistance with integration. Further ongoing legal support.
3. Integration of P2P solutions
Comparing P2P and e-commerce solutions, P2P solutions usually have less complicated onboarding requirements, and many are ready to start working even when your company does not have a license. The reason is that in financial terms, P2P is not a crypto-fiat exchange; it is a combination of two separate transfers: P2P crypto transaction via blockchain and card-to-card bank transaction between two individuals (or transaction using mobile payments between two individuals). P2P solutions can be integrated via host2host or API.
Advantages: It can be integrated faster, and the onboarding process is more accessible than for e-commerce solutions.
Disadvantages: Less trustable than acquiring, a P2P solution can cause legal risks as soon as your business grows. In case you decide to reinstall it in the future and to change to an e-commerce (acquiring) solution, it can cause additional expenses for IT-related tasks.
Sino Fintech services: Help search for a P2P solution upon your request.

As mentioned, no one solution in the market would fit all business models. Sino Fintech uses an individual approach to every business.

China uses UnionPay instead of Visa and MasterCard.
China has its own payment network UnionPay to facilitate electronic transactions between merchants, banks, and consumers. UnionPay originated in China and is primarily used in Asia, although it has been expanding globally in recent years. It is impossible to make a card-to-card transaction from a UnionPay card to Visa/MasterCard as UnionPay uses card numbers with 19 digits instead of 16 digits as Visa/MasterCard.
Besides, there is a difference between the networks in the way they process transactions. UnionPay is an interbank network, which means that it connects banks directly to facilitate transactions. On the other hand, Visa and Mastercard are associations of banks and financial institutions that work together to provide payment services.
It is possible to open a bank account in Chinese banks for foreign companies, but the procedure is complicated and can require detailed documentation. The lack of full convertibility of China’s RMB and the approval system under the State Administration of Foreign Exchange usually turns typically global solutions into bureaucratic hurdles that won’t suit the scope of foreign companies.
If you want to open a business account in a Chinese bank for your foreign company, the Sino Fintech team will first review your company documentation and business model. Sino Fintech will contact banks on your behalf for a pre-approval process. Even after the pandemic, many banks provide services remotely; in practice, Chinese banks require representatives of foreign companies to come to their physical location in person.


Receiving payments from retail customers
Chinese retail customers are used to paying for goods and services by Alipay and WeChat Pay. It would be beneficial for your business to install those payment methods into your platform. An option to use Alipay can help your business to attract Chinese customers as it gives them a familiar and trusted way to make digital payments.

An international solution that works in China is PayPal. PayPal is a widely used payment platform that supports transactions in multiple currencies, including Chinese yuan. You can set up a PayPal business account and provide your customers with a payment link to complete the transaction. But as not many Chinese retail customers use PayPal in their everyday life, this payment method cannot be the only one for your business, it is recommended to install multiple payment methods.

How to set up Alipay outside China for international businesses?
There are two routes foreign businesses can take to register for Alipay.


1. Direct registration is possible if your business has a Chinese bank account.
This means that when a customer pays for a product or service via Alipay, the payment will land directly in your bank account — minus any transaction fees.
This is an easier and quicker way to set up Alipay outside China, as it means you won’t have to work with (or pay) a third-party acquirer.

2. If your business does not have a Chinese bank account, you must partner with an Alipay acquirer.
Alipay’s acquirers are financial institutions that accept payments from Alipay on your behalf and then send them to your bank account. The Sino Fintech team can help you contact an Alipay acquirer in your company's jurisdiction and set up an agreement.
Sino Fintech professionals are ready to assist you at any stage.