Bitcoin Forum
December 11, 2017, 11:29:24 PM *
News: Latest stable version of Bitcoin Core: 0.15.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Question for UK Bitcoin traders (banking related)  (Read 1018 times)
tenakha
Hero Member
*****
Offline Offline

Activity: 512



View Profile
October 17, 2012, 09:03:07 AM
 #1

As we have seen that both Intersango and mtgox have had issues with their banking facilities in the UK (I don't knw the exact details - perhaps someone can elaborate?).

My question is aimed at the small/medium sized traders of Bitcoin who are taking payment into their personal bank accounts/paypal accounts:
Has anyone had issues with the banks objecting to deposits/withdrawals if they are related to Bitcoin?
Has anyone had their account shut down?

I avoid making/receiving payments now via bank/PP as much as possible. I just do small cash transactions face to face, as I am wary that eventually if the banks catch on that its bitcoin being traded  they will shut the accounts down - both buyer and seller.

Can anyone shed more detail on this?

Thanks.

Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1513034964
Hero Member
*
Offline Offline

Posts: 1513034964

View Profile Personal Message (Offline)

Ignore
1513034964
Reply with quote  #2

1513034964
Report to moderator
davout
Legendary
*
Offline Offline

Activity: 1372


1davout


View Profile WWW
October 17, 2012, 09:30:07 AM
 #2

As we have seen that both Intersango and mtgox have had issues with their banking facilities in the UK (I don't knw the exact details - perhaps someone can elaborate?).

My question is aimed at the small/medium sized traders of Bitcoin who are taking payment into their personal bank accounts/paypal accounts:
Has anyone had issues with the banks objecting to deposits/withdrawals if they are related to Bitcoin?
Has anyone had their account shut down?

I avoid making/receiving payments now via bank/PP as much as possible. I just do small cash transactions face to face, as I am wary that eventually if the banks catch on that its bitcoin being traded  they will shut the accounts down - both buyer and seller.

Can anyone shed more detail on this?

Thanks.
The reason bank accounts from exchanges get frozen is not that they deal or are related with Bitcoin.

It's very precise :
 - Banks have the obligation to ascertain the real beneficiary of funds that are deposited, with a Bitcoin exchange they can't.
 - Only licensed financial institutions have the right to open "accounts" for the general public and more generally store funds on behalf of third-parties.

The problem has nothing to do with Bitcoin in itself.


tenakha
Hero Member
*****
Offline Offline

Activity: 512



View Profile
October 17, 2012, 10:39:52 AM
 #3

OK, yes that makes total sense.

Again thats related to the fact that Bitcoins are not issued by a Government or a National Bank.

Its not a recognized currency as such. As someone at the London Bitcoin conference said: "Its unregulated at the moment, and not many people 'get' it" ...


davout
Legendary
*
Offline Offline

Activity: 1372


1davout


View Profile WWW
October 17, 2012, 11:04:49 AM
 #4

Again thats related to the fact that Bitcoins are not issued by a Government or a National Bank.
No, it's related to the fact that there are precise rules as to who can open accounts, and store currency on behalf of a third-party.
The problem would be *exactly* the same even if Bitcoin was regulated or if exchanges were dealing with bananas.


Pteppic
Member
**
Offline Offline

Activity: 110


View Profile
October 17, 2012, 01:40:07 PM
 #5

It's very precise :
...
- Only licensed financial institutions have the right to open "accounts" for the general public and more generally store funds on behalf of third-parties.

Yeah, I've not had any trouble and I don't expect any and I've received bank transfers, international wire transfers and SEPA transfers from various exchanges.

My bank is sending and receiving funds from registered, documented businesses. Intersango's bank is receiving and holding funds from, well, they don't really know who and that was a big part of the problem.

"Remember too on every occasion which leads you to vexation to apply this principle: not that this is a misfortune, but that to bear it nobly is good fortune." - Marcus Aurelius
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!