Many business owners ask me the same question every week:
“I have crypto. I need to convert it to fiat. What bank can I use without getting shut down?”
If you own a US LLC and deal with crypto, this is one of the biggest operational risks you face.
Not volatility.
Not taxes.
Banking access.
Accounts get frozen.
Transfers get rejected.
And sometimes the bank simply closes your account without warning.
In this article, I will walk you through three real banking options that clients are using today to buy and sell crypto safely, plus the pros and cons of each. These are not theoretical. These are structures that have worked in practice.
This is not about hiding money.
This is about operating legally and avoiding disruptions.
The Core Problem With Crypto and Banks
Crypto was built to remove banks from the equation.
Banks were built to control money.
That creates friction.
From a bank’s perspective, crypto creates:
- Compliance risk
- Fraud risk
- AML and KYC exposure
- Regulatory uncertainty
From your perspective, crypto creates:
- Faster payments
- Borderless transfers
- Lower fees
- Financial flexibility
The conflict is unavoidable. The only question is how to structure your banking so you reduce the risk of shutdowns.
Option 1:
US LLC With Traditional Banks and Exchanges
For small to medium crypto activity, many clients successfully use:
- A US LLC
- A standard fintech bank (Mercury, Relay, Revolut, Slash)
- A compliant exchange such as Kraken
This structure works best when:
- Crypto is not your only source of income
- Crypto flows are mixed with normal business revenue
- Transfers are reasonable and consistent
What Works
If your business receives:
- Client payments
- Consulting income
- Ecommerce revenue
And crypto is only a portion of that flow, banks are far less likely to intervene.
For example:
If your company receives $200,000 per month in normal client revenue and $20,000 from Kraken, this usually does not raise alarms.
But if your account only receives crypto conversions, banks treat you as a crypto business, even if you are not one.
Risks
- Sudden account closure
- Enhanced due diligence
- Transfer limits
- Delays
This option is best for:
- Hybrid businesses
- Consultants and ecommerce operators
- Owners who dabble in crypto but are not fully crypto-native
Option 2:
Puerto Rico Crypto-Friendly Banks
Some of the most crypto-tolerant banks under US jurisdiction are located in Puerto Rico.
One example many clients have used successfully is FV Bank.
Puerto Rico banks operate under US financial rules but have shown more openness to crypto-related transactions.
Advantages
- US-linked jurisdiction
- More tolerant crypto policies
- Ability to open accounts without US residency
- Recognized in major crypto publications
Disadvantages
- Slower onboarding
- More documentation required
- Enhanced source-of-funds review
- Longer approval timelines
- These banks tend to ask for:
- Business activity explanations
- Proof of income
Crypto transaction history
Financial statements
This is not necessarily a bad thing.
It means they understand crypto and are protecting themselves.
This option is best for:
- Crypto-heavy businesses
- Foreign owners
- Clients who want US-linked banking but more flexibility
Option 3:
Panama Private Banking
Another option that has gained attention is private banks in Panama, such as TowerBank.
Panama remains one of the most important banking hubs in the Americas and has been positioning itself as more crypto-friendly.
Advantages
- Online account opening
- Multi-currency support
- Crypto onboarding and offboarding
- Credit cards and operational tools
- Banking culture built around international clients
Disadvantages
- CRS reporting country
- Higher fees
- More formal compliance procedures
- Less consumer-style fintech speed
Panama participates in CRS, meaning information is reported to your home country if applicable.
This is not a secrecy jurisdiction.
It is a banking jurisdiction.
This option is best for:
- International business owners
- Crypto-native companies
- Clients who want geographic diversification
- Owners who accept higher compliance in exchange for stability
Why Banks Shut Crypto Accounts Down
Account closures usually happen for one of four reasons:
- The bank cannot understand your activity
- Your account looks like a crypto-only operation
- Transfers spike suddenly
- Your documentation is weak
Banks prefer:
- Stable monthly activity
- Clear business purpose
- Multiple income streams
- Transparent compliance
They dislike:
- Sudden large transfers
- Exchange-only cash flow
- Poor explanations
- Inconsistent transaction patterns
This is not about legality.
It is about predictability.
Why You Need More Than One Option
Crypto banking should never be single-point-of-failure.
Every crypto business should have:
- At least two banking paths
- More than one off-ramp
- Backup accounts
- Jurisdictional diversification
If one bank freezes you, operations must continue.
Redundancy is not paranoia.
It is operational planning.
Compliance Still Matters
No matter which bank you use:
- Your crypto income is taxable
- Your LLC must file correctly
- Transfers must be justified
- Intercompany payments must be documented
Crypto does not eliminate tax obligations.
It only changes how money moves.
If you are moving money between related companies, transfer pricing and documentation still apply.
If you are foreign-owned, forms such as:
- 5472
- 1120
- 1065
- 1040-NR
may still be required.
Banking structure without tax structure is incomplete.
The Real Lesson
There is no single “best crypto bank in the world.”
There is only:
- The best bank for your use case
- The best jurisdiction for your structure
- The best risk balance for your business
Crypto is about freedom of movement.
Banking is about control of movement.
Your job is to build a bridge between the two.
Final Thoughts
If you own a US company and work with crypto, you must plan your banking just as carefully as your tax structure.
Random bank accounts lead to random shutdowns.
Structured banking leads to continuity.
This is not about secrecy.
It is about survival.
Need Help Setting This Up?
If you need help with:
- Setting up a US LLC
- Structuring your banking
- Handling crypto compliance
- Opening accounts correctly
- Keeping your structure legal
You can schedule a free call with my team to review your situation and see what options fit your business.
Each case is different.
What works for one client may not work for another.
Planning beats panic.
