Using a separate bank account for Bitcoin income

[kcirazy]

I've been seeing so many stories of people who had their bank accounts frozen or shut down because a bank wasn't prepared to take the risk regarding AML
If this happened to be your main account where you receive money, this could be a big problem. Therefor, wouldn't it be a smart idea to advice people to create a separate bank-account to receive money made through Bitcoin-channels? Either receive the transfers from your exchange account or BitPay account. In that case only you Bitcoin-income will be affected and the rest of your business can still operate.

[desired_username]

As always, redundancy is very important. More so If there's a 3rd party (bank, payment processor) involved.

[btceic]

Yes, this makes sense to me also.

Has anyone made a spreadsheet on US banks and bitcoin?

[Moogy]

Uk banks have their watchful eyes glancing over accounts, Barclays have raised eyebrows with a few of my friends accounts, has required them having to chat with bank managers to explain they were only selling 'vouchers'

I think they would have no hesitation to bring the hammer down.

Hammertime.   

[coinprize]

Get an offshore HSBC or Swedish bank account in Hongkong, Belize etc. I know some people did that, but they spend most of the years out of US.

[EscrowBTC]

We all need to be smart and manage our accounts well!

[CurbsideProphet]

I've been seeing so many stories of people who had their bank accounts frozen or shut down because a bank wasn't prepared to take the risk regarding AML
If this happened to be your main account where you receive money, this could be a big problem. Therefor, wouldn't it be a smart idea to advice people to create a separate bank-account to receive money made through Bitcoin-channels? Either receive the transfers from your exchange account or BitPay account. In that case only you Bitcoin-income will be affected and the rest of your business can still operate.

It's probably a good idea.  The thing to remember is it's more of an inconvenience than anything.  In cases where you're operating legally, a bank can close your account but they cannot freeze your funds.  They're basically saying, "we no longer want your business, you have 10 days to get your money out."  So it's not really the end of the world but it is a pain in the ass. 

[bitcoinsrule]

I just got an account with the Internet Archive Credit Union, took about 3 days for the phone interview, they have gone on record as supporting bitcoin so I would give them a try.

[TheFootMan]

A friend of mine had his bank account shut down, and had to move his own and his wife's account and the mortgage too, the bank essentially said they did not want his business.

[BitNit]

Why do we need to hide our bitcoin income if you truly believe you're not doing anything wrong?

[BTCThousandaire]

Why do we need to hide our bitcoin income if you truly believe you're not doing anything wrong?

Because most banks are a high risk, and should be dealt as a risky investment and business opportunity.

[kcirazy]

Why do we need to hide our bitcoin income if you truly believe you're not doing anything wrong?

It's not about hiding your income, but separating it from your accounts at your main bank, just in case the bank decides to terminate all business with you. In that case you don't have to switch banks and accounts. It's a precaution to save yourself a lot of potential inconveniences at the very least.

[btceic]

A friend of mine had his bank account shut down, and had to move his own and his wife's account and the mortgage too, the bank essentially said they did not want his business.

my wife would have my head if something like the above happened. its not about hidding anything but seperatioj of concerns.

[CurbsideProphet]

A friend of mine had his bank account shut down, and had to move his own and his wife's account and the mortgage too, the bank essentially said they did not want his business.

Interesting about the mortgage.  I'm assuming the bank was just servicing the mortgage and sold it off long ago to Fannie or Freddie.  You would think there would be some sort of contract language where they can't just stop servicing the account without cause.  I don't think another bank would just pick it up like that as they probably don't make much if anything off doing so.

[Mjbmonetarymetals]

People should stop using their private bank accounts to conduct business, if your trading btc go and open a business account.

[btceic]

Anybody using Ally for these or other purposes?

Anything good or bad to say about them?

They are online only, debit card + savings account etc, I really don't need much more than this for my buying and selling of bitcoin.

[franky1]

Uk banks have their watchful eyes glancing over accounts, Barclays have raised eyebrows with a few of my friends accounts, has required them having to chat with bank managers to explain they were only selling 'vouchers'

I think they would have no hesitation to bring the hammer down.

Hammertime.  

and thats where the problem lays.. lies...

my UK bank manager knows fully about bitcoin and knows i trade bitcoin which to my surprise, over a year ago when first talking about, they are actually ok with it. as long as i stick to the limits etc. and thats still the same even now

BUT.....

those that LIE and say they are selling advertising or vouchers, and then when some scambag tries requesting your bank to refund them due to bitcoins(yes chargeback scum are not limiting their scumbaggery to paypal). your bank will start questioning why you lied about the purposes of your trades, and indeed believe the scambag's accusation that you defrauded them. causing you to then be investigated.

so please have a proper conversation with your bank manager and be honest about the purposes of trade.

a prime example is blockchain.info who from what i have read, told their bank they sold pre-paid advertising... now look, they no longer provide UK transfers direct

[inceptor]

I think its better idea as if same 1 bank acc uses for all transactions then even if bank freeze account for any reason all money can be lost or held for long time

so better use new bank account specially for BTC transfers

thanks

[joesmoe2012]

IAFCU has specifically said that they are not going to bully people around over bitcoins.

[superresistant]

I think my bank manager don't give a damn unless I start to trade millions.