thanks for all the replies, soo what about if hypothetically I wanted to do the opposite, I mean cashing out profit from bitcoin, let's say for example someone wants to sell 1 bitcoin and cash it to the bank, would the bank freeze the money if they are not crypto friendly? and would the money be lost in this case or what would happen?
It is quite possible that the bank will freeze the account and ask you to prove the origin of the money, but I do not mean only the money you withdrew into your bank account, but also the origin of the money with which you initially bought BTC. Depending on the country you are in, banks are required to investigate and report any suspicious transaction to the tax office, and in some countries the tax office has 100% insight into the bank accounts of all clients.
Of course, money can be lost (confiscated) if you can't prove its origin and legality, which is why I have already written to you that you need to check the policy of the bank you are doing business with.
Man, what they don't want is to be challenged. As they are dedicated to money laundering, they are terrified of cryptocurrencies, because they can take clients away from them, and that is why they try to prevent them from being used, in vain, of course.
This is one of the possibilities, we know that cash is something that is ideal for money laundering (if you know how to outsmart the system), but cryptocurrencies can also be used for that purpose, although you also need to know how to do it - certainly not by doing transactions in BTC, but in some alts that provide much greater anonymity.
However, in this particular case, it may only be a matter of the bank's local policy because it is an HSBC subsidiary in Canada - which does not mean that they apply this business practice globally.
