Projects like yours secured a Legal Services with Rengangyongsheng

discover their experience of working with us

A perfect fit for our business

I highly recommend Legal to any entrepreneur or business seeking top-notch services for their company formation.

Tom

Best for Crypto Licenses

Best company for Crypto Licenses! Kudos to the team for making the incorporation of our company really smooth

Charlotte

Fast and Reliable

Quick set-up and straightforward process. It was a smooth process, we are happy to have chosen Rengang as our Partner for incorporations, globally.

‌Daniel

Highly recommended!

They are undoubtedly top-level experts when it comes to licensing and registrations in the crypto and web3 industry. Highly recommend!

James

Excels at adapting to challenges

Rengang excels at adapting to challenges and demonstrates a perfect understanding of our business needs.

Alexander

A fruitful cooperation

As a result of the fruitful cooperation with Rengang, Yellow Card obtained a VASP registration, fast and without any legal complications.

Jack

CONCRETE LEGAL MEANS TO OFFER ON AND OFF RAMPING SERVICES TO YOUR CLIENTS

Examples of solutions to build ramps

Below are examples of how Rengang sets up an entity and eventually connects with payment gateways and banking institutions. Based on the current stage of your activity, different walkthrough apply. All in all, we always advise getting in touch with our consulting team for proper guidance.

Building a legal entity from scratch with on-ramping and off-ramping services
The usual process of setting up a proper legal structure for a crypto business willing to provide on and off ramping services can be broken down into three steps:

Incorporation of a legal entity;
Obtainment of a crypto license for compliance with the regulations, that financial institutions are subject to;
Opening of a corporate account, payment gateway account, and proper technical implementation/automation (if relevant).
All these steps are connected to each other, as the company registration leads to the licensing process. The license itself is a requisite for opening accounts in financial institutions and FinTechs.

Adding ramps to a licensed crypto company
As your legal entity is set and you are already operating under license, the process gets significantly simpler and shorter.

Based on your legal structure and with the possible reinforcement of legal documents, Rengang will present your company file to a set of trusted financial institutions, to assist in opening a corporate account and/or a payment gateway account. The introduction will then make it possible for your business to provide on-ramping and off-ramping services.

Is it possible to offer on-ramping and off-ramping with an unregulated crypto company?
Experience shows that without a proper authorization, third parties will be reluctant —if not forbidden— to work with a crypto company operating with no license or equivalent permit. Financial institutions are all tied to strict regulations and working with an unregulated actor would put them at risk, thereby putting a hard stop to this practice.

Rengang can assist such unregulated crypto companies to consider different solutions that would unlock the path the necessary financial services. We encourage you to detail your case into a contact request, that will be forwarded to a legal expert, that will get back to you on your particular case.

THE SERVICES OF ON-RAMPING AND OFF-RAMPING

Different ways of helping your customers move in and out of blockchains

Connecting your customers to the world of cryptocurrency, no matter if you run an exchange, a NFT marketplace, fiat to crypto gateway or a web3 game, is becoming a factor of success. At the very least, it unlocks huge shares of markets, that would otherwise prefer use the services of competitors offering on-ramping options.

On-ramping and off-ramping, simply put, is the act of changing fiat currency for crypto (“going on the blockchain ramp”) or vice versa (“going off the blockchain ramp”).

There are different ways to allow your clients to get on and off the crypto ramp. Card payments and bank wires are the immediate ones that may come to your mind, however a few other alternatives may be worth looking into, depending on your target markets. We shall dive into each case below.

Permitting your clients to buy crypto with card payment
From the experience of our legal consultants working actively with hundreds of crypto companies, it is clear that allowing customers to purchase virtual assets with debit card or credit card payment is a catalyst of the customer base. With the vast majority of the Western and Asian citizens equipped with bank cards, and a daily increasing amount of individuals in developing countries getting access to payment means, card payment for online services is a must on virtually every market.

Crypto companies willing to offer card on-ramping services have two ways to go about it: implement it themselves or outsource the card payment processing.

Developing the technical solution to receive card payments requires in fine a bank account to connect with. The development of a homebrew payment system is regulated in various jurisdictions, to protect customers from malevolent practices such as card data theft. This solution is usually preferred by large FinTech companies and projects encompassing banking services with an Electronic Money Institution embedded in their legal structure.

The simpler, generally preferred method, is to outsource card payment processing to a dedicated third party service provider. As the proper legal structure allows a crypto project to subsequently access to banking services, it also opens the door to contracting with payment services providers. Rengang usually offer a 2-in-1 solution, including a corporate account and a payment gateway agreement to allow crypto companies to provide on-ramping services with card payments to their customers.

Allowing your clients to buy crypto with bank wire
The simplest way to allow on-ramping in countries whose population are mostly banked is to offer bank wire on-ramping. On the operational level, it usually differs from a card purchase nonetheless. Fairly often, crypto companies will prefer to offer their clients to load up their accounts in fiat currency, to then exchange it directly on the platform, when offering bank wire as an on-ramping solution. This is simpler given the required time for a bank transfer to complete and for the limited amount of information it can carry, in contrast with immediate card payments.

On the technical level, this is also the simplest solution. Unlike card payments, there is no middleman between the end user and the project's bank account. Making use of an API, it is then possible to automate bank wire reception to your KYC software and to your platform's database, hence streamlining the user experience.

Alternative on-ramping methods
According to the World Bank's Global Findex Database, about one in four human beings don't own a bank account. Yet, these people still need to transact on a daily basis. Whether it's using cash or remittance services such as Western Union, or other innovative financial services, there are alternatives to bank-based transfer methods.

Selling Bitcoin and cryptocurrency in physical shops, against cash, was made popular very early in the existence of virtual assets. It continues to be a striving business model, oftentimes in the form of Bitcoin ATMs. On these machines, a user can purchase BTC on a new or existing wallet. As for snack vending machines, these ATMs can be equipped with the hardware to accept bank notes and coins.

As various ways to sell cryptocurrency to clients can be conceived, they all revolve among the same key points on the legal perspective.

Off-Ramping on payment cards
Payment done directly onto a payment card is novel way to transfer money. This technology is mainly used by e-commerce companies and has grown popular in certain areas of the world. It is made possible thanks to technical innovation by card issuers and by remittance companies.

The implementation of such an option in a virtual asset services platform will then depend on a third party: the payment gateway. Usually, this payment service provider furnishes all the technical tools such as APIs and scripts to seamlessly insert on-card payments for customers.

Off-ramping through bank wire
The main off-ramping method in Western countries is for users to sell their cryptocurrencies on an exchange for a credit line in a fiat currency. Then, proceed to request a bank wire from the same exchange interface in the given fiat currency, onto their bank account.

This solution encompasses the implementation of credit lines onto the exchange platform. The user having sold its cryptocurrencies is now in credit of a given amount of fiat currency. The user can then proceed to request a wire to his account. The request can be appended into a database of transactions "to-do" or directly sent out to the exchange's banking infrastructures to deliver a faster payment.

Other off-ramping methods
One may conceive other ways to transfer fiat currencies to clients in exchange for the cryptocurrency they detain. Cash payment comes to mind, as in a transaction between two individuals meeting face to face. The usage of other value transfer methods such as PayPal can also fall under the scope of crypto licensing, in addition to the terms and conditions of such services.

The exchange of clients' virtual assets for coupons, vouchers and alike is not considered off-ramping. The provision of such virtual asset service falls under the scope of other regulations, depending on the exact extent of your activity. We advise getting in touch with our consultants and request a legal assessment for certainty.

Legal Services in On/Off-Ramping