Legal Market Maker

Hey evryone, good Morning!
Hope yall doin fine :fist:t3::sunglasses:

My first post and already serious business :sweat_smile:

…id like to know how to be a legal Market Maker on Bisq living in the EU? Is it even possible?

I spoke to lawyers and they said i need to have a license to be a full time Seller for p2p trading.

I spoke to a license advisory and they said as long as i trade p2p on exchanges i dont need a license.

Maybe a nokyc Dex like Bisq is another problem for the law, but Im trading below 900€ so no need for kyc anyway.

Other questions would be if i have to register a business for that? To get a business bank account and taxation.

Or if i can do it as a private person, because I am just selling my Bitcoin, that i bought from my money in the first place. Eventhough Im buying the Spot for the Peer as soon as we have a trade.

Is it to be seen as a customer service? or just arbitrage trading? or both?
To my mind we are just trading on bisq :upside_down_face:

Another issue is banking. Can i fix it by taking stable coins also or isnt it recommandet in terms swaping back to fiat on exchanges in terms of money laundering without proof of source.

And are there still more relaxed countries handling the regulation? Maybe Portugal looser than Netherlands for example.

I really hope you have some insights and thoughts for me!
I highly appriciate it :+1:t3::+1:t3::+1:t3:

Stay safe :wink::v:t3:

I would get started market making on Bisq.

If you are successful then figure out the rest as you go.

No point spending funds on legal fees and setting up a business until you know that is what needed AND your profits would justify these expenses.

Ok thx for your answer!
Actually i didnt pay anybody yet! They are nuts lol
Just some free advice they gaved me!

I’m just struggeling to find some info to avoid getting into trouble if i start selling.
Cant afford that, being a family father. Thats my only concern and why I need to found out for sure to feel safe.

But whats the worst case scenerio if i start and get into trouble?
Alcatraz? :sweat_smile:
…or just a bank account shut down? I wonder how fast they will ask questions :thinking:
And without running the registered business not telling them what im doing right?

I heard i should stay under 10k for the whole Volume. But thats by far not enough to feed the family as i wish to do it as a full time job :wink:

Maybe at 10k i ask my tax advisor for help and go from there as you told me to!


1 Like

Why do you think you would get in trouble? Are you in a country where bitcoin is illegal to sell?

Banks might not like you using their accounts to sell bitcoin but they will just close your account if they have concerns. Try trading from an account that is not your primary account.

Tax wise you would just need to find out what the rules are in your country. But if you have not started you will not know if you will make a profit or not.

I was told trading for the funds of a customer has to be licensed as a money transfer service.
Eventhough Im not trading directly with the customer but through an exchange.
So p2p trading seems to be “illegal”, especially if i do it on a regular bases, wich would be obvious if i do my tax for it at least.
If they see i made so many trades they might dont like it and not just close my bank account but they could sue me maybe. …I dont really know…correct me if im wrong pls!
…thats why I was thinking about making it official right at the beginning, to avoid trouble.

Also i hope theres still is a way to argue against it and thats why im asking here for advice to see the other side of the medal in comparison and hope to find some insight how a market maker on Bisq handles those things.

I heard a license is around 100k and
In Mica small players are not mentioned.
Maybe thats good…or bad. Just like Defi isnt regulated in Mica yet i believe.

…btw I live in Europe so Mica will be the regulation sooner or later. ~30% Tax when selling under one year.

Hi Max,

What I know is that to handle transactions and work as a middleman professional in FIAT and Crypto involved matters, you need a license in Europe. This is about the AML and KYC rules…

Another thing you have to take in account is the taxation in your country.

About the banks, if you tell them blatantly that you are making P2P transactions or something to do with BTC they will close your account ASAP. so try no to disclose that…

hope it helped.

Hey thx for your answer!
Yes always helpful!
Does anyone have a license here?