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.