How to buy Bitcoin and other cryptocurrencies
The easiest way to buy Bitcoin, Ethereum and other cryptocurrencies with a credit card is as follows:
1. Register with WebMoney
2. Open a WMR account
3. Visit the WebMoney office, obtain a certificate to expand the limits
4. Top up your WMR wallet with the required amount (you can use a card)
5. Create a WMX wallet (Bitcoin equivalent)
6. Transfer funds with conversion WMR – WMX
7. For each WMX wallet, WebMoney immediately creates a Bitcoin wallet. You will see its address in the menu
8. That’s it, you are the owner of a Bitcoin wallet, the interface is provided by WebMoney
In order to exchange Bitcoin for Ethereum or another cryptocurrency, you can use, for example, the Poloniex cryptocurrency exchange by opening an account there and specifying the number of your Bitcoin wallet received earlier.
Selling cryptocurrency and withdrawing funds, for example, to a bank card, is carried out in a similar way, only actions must be performed in reverse order.
Purchase of cryptocurrencies for legal entities
The above method may be good for individuals, but it has one limitation related to the very mechanics of the operation of such exchange offices, namely: the availability of a reserve of the required currency. Therefore, the volumes available for purchase are very small.
“RF Flagship” WebMoney solved the buffer issue in a more original way – they created their own closed cryptocurrency exchange. However, the volume of trades on it by the Bitcoin-ruble pair, at the moment (August 5, 2017), does NOT exceed 3,000,000 rubles per day. In addition, the total transaction losses are about 2.5%.
Upon purchasing cryptocurrency through the WebMoney service, a legal entity receives a confirmation document “Act of Completed Works” that satisfies the domestic tax office.
As you can see, legal schemes for both the purchase and sale of cryptocurrencies on the territory of the Russian Federation exist in principle.
The second way to buy cryptocurrency for an organisation
An alternative is the old financial technology rooted in classic tax planning. Suitable for many jurisdictions. Details of the technology can be transferred, for a fee, to our clients who wish to create an exchange office or a cryptocurrency exchange.
In a nutshell, the following is done: a “recipient” jurisdiction is selected with the required model of regulation of the circulation of cryptocurrencies, which has a “double taxation avoidance” agreement with the “sender” jurisdiction in which the fiat money that needs to be converted into crypto is located, or a similar document allowing to take out taxation to the jurisdiction of the “recipient”.
A company in the “recipient” jurisdiction enters the “donor” in a certain way and conducts cryptocurrency transactions in its own right, the tax base in accordance with the avoidance agreement, along with the regulator and the tax office following it, is also transferred to the “recipient” jurisdiction, which can also be an offshore.
You can read more about creating an exchange office, exchange or money transfer systems in the relevant articles
Alexey Zarin
Moscow, 2017
