Multiple crypto exchange accounts under same person, but different ID. Will it be reported?

If it's done ”” or suspected to be done ”” with criminal intent, yes, it would be reported (SAR/STR)). But if it doesn't come across as criminal, it's likely just treated as a T&C violation and the accounts are closed (they might let you keep one).

In the example of Bybit, it's very clearly a T&C violation:

Registration of multiple trading Accounts would be a violation of these Terms and may lead to immediate termination of these Terms and the Accounts involved.

Chances of getting flagged are hard to quantify since a lot depends on the user and what data you provide.

If you log in from the same computer (even with different browsers, VPNs, wifis), they can easily connect the dots automatically using any half-decent fraud prevention or risk management tool.

It'd also be quite easy to cross-reference and find a match on ID number (some countries put national ID number on all ID docs), or date of birth + name + country, and other variations like that. Checks like that are often performed automatically with narrow search criteria, and wider searches are done manually from time to time.

DrunkFlamingo said:

I was looking to get *some* of my crypto trading out of *the system* while I gear up to eventually leave my tax residence. Problem is I need API access to exchanges in order to get my algos to trade, and a lot of exchanges need at least some kind of basic KYC.

Can you create business/corporate accounts? Maybe I missed something, but I didn't understand why you want multiple accounts.

DrunkFlamingo said:

Not that I'd know, but in my opinion my activity shouldn't appear to be criminal as I'd only be trading using the algos, so no large deposits constantly in and out.

The perception of it being criminal activity could stem from the exchange considering your multiple accounts as a way to obfuscate source or destination of funds, or to avoid reporting/KYC thresholds based on amounts traded.

At least that's a risk you'd have to be mindful of. It's unlikely to come to that, especially if we're talking about amounts under a few hundred thousand EUR/USD/equivalent. Smaller amounts rarely warrant an SAR unless there's something truly egregious.

DrunkFlamingo said:

One option I was looking at was to use an IBC in privacy location such as Belize etc, using nominees, which is owned by a private interest foundation in Seychelles, which also uses nominees, so my name is not on anything. But that seems like a lot of work around when all I need is an exchange account, and I can see issues where my name would need to be on the exchange account somewhere as a security measure.

That'll cost a lot of money to do right (legally), if you don't want to appear in the KYC anywhere. And it'll take months to set up.

DrunkFlamingo said:

There is a limited choice of exchanges which require basic KYC (No ID needed, just type in some details). I would prefer to use my real details incase an account were to get frozen, so I can submit real ID to unblock it.

An excellent decision.

DrunkFlamingo said:

Corporate accounts still need director KYC info + and a whole lot more. It is another way forward, which could be done via Dubai freezone (best done if I actually moved there though) or via the Seychelles IBC + Foundation method.

I mentioned it because once you're onboarded as a corporate or institutional client, you're often permitted much higher volumes and limits than personal accounts. But it does come with the complexity of setting up such a company and solving for its tax residence et cetera.

DrunkFlamingo said:

I am going to have to do some more research on this. I have been in conversation with a few offshore company service providers. offshoreincorprate was one. They make it all seem so simple, but it's hard to trust them when they are the ones to gain by selling their service. After a bit of research on here I have seen it's seldom as straightforward as they make it seem.

As a general rule, I only work with service providers that are licensed (check the relevant jurisdiction's financial services authority website) or that are law firms (verify membership against local bar association). Costs a bit more but I like going to bed every night knowing I won't wake up to the tax man knocking on my door. Or if they do, everything is in order and can be shown and explained.

There is a time and place for different types of service providers. Incorporations mills (unlicensed resellers of licensed service providers or law firms) can be fine for simply creating companies if you know you don't need anything custom or sophisticated. Maybe, if even then... They're cheaper, though. But the one-size-fits-all approach is dangerous. Might've worked 10+ years ago, when these types of businesses thrived, but it's a different playing field now.

DrunkFlamingo said:

I am new to mentor gold, so still need time to poke around to find this stuff.

Welcome to the Mentor Group!

DrunkFlamingo said:

Out of interest, would you be willing to throw out some ball park figures of how much setting something up like this realistically would cost?

IBC + nominees + foundation/trust + can't see a need for a bank acc. Privacy focused.

It's really hard to estimate but I'd say you're looking at something in the 25””50,000 EUR/USD range. Maybe more, maybe less. If you needs are very simple, I could see it done for around/under 10,000.

Speak with Ellul and Sovereign in Gibraltar, ILS in Isle of Man, Asiaciti in Singapore/Samoa, and Dixcart. That should be a broad enough search to get an idea of what the pricing would be.

Also factor in the cost of getting a legal opinion locally to check that your offshore structure is legal and sound. You'll need that to truly sleep well at night.

Sols said:

It's really hard to estimate but I'd say you're looking at something in the 25””50,000 EUR/USD range. Maybe more, maybe less. If you needs are very simple, I could see it done for around/under 10,000.

that's a lot of money, you must be in the high level of society if you have that money to invest to establish you this way.