chances of bank closing account if you buy bitcoin

[jakesun64]

What are the chances of a bank closing your account if you buy bitcoin? i have heard people say they closed down their bank account for buying bitcoin, but this might have been a few years ago. he only said they closed his account, there is no chance of them taking all the money in your account, correct?

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[mk4]

Your best bet is probably to head over to the local section, and ask about the specific bank you're planning on using. The answer to your question will pretty much vary with country to country and with bank to bank.

[NeuroticFish]

there is no chance of them taking all the money in your account, correct?

Well, if this happens, the money will be locked for quite a while and you may have to answer to various questions. Only after they unlock the money it's yours again.
From what I know this kind of situations are more frequent if you sell Bitcoin ("what's the source of your money?"), but keep in mind that most banks don't like Bitcoin, are afraid of Bitcoin and some may (still!) see Bitcoin investors/users as criminals.

But as said, best is to ask about the specific bank. Some banks - very few - even advertise themselves as Bitcoin friendly.

[tranthidung]

What are the chances of a bank closing your account if you buy bitcoin?

Rules, laws are different in different nations and you can not generalize all things for all nations.

i have heard people say they closed down their bank account for buying bitcoin, but this might have been a few years ago. he only said they closed his account, there is no chance of them taking all the money in your account, correct?

It depends

• Banks can close your accounts for many reasons: suspicious money flow; money laundering, fraudulent activities and victims file reports to police
• Trades / exchanges relate to Bitcoin or cryptocurrencies. It depends on local laws in your nation. Read local laws or ask it specifically in local boards or threads for your nation on the forum.

[ninkdwi]

the problem is every country has a different policy. let alone a bank, and here which state bank do you mean? So we know what kind of policy they lock accounts.

[sunsilk]

What are the chances of a bank closing your account if you buy bitcoin? i have heard people say they closed down their bank account for buying bitcoin, but this might have been a few years ago. he only said they closed his account, there is no chance of them taking all the money in your account, correct?

I've heard of it too but it depends first, on your country and next, on the bank itself. Let's remove the first case of the bitcoin ban, there's no ban so it means that it's totally fine to buy bitcoin in that country because there's no ban.

Now the next thing shall come that if a bank in that country whether there's no law about banning it, they have the ruling to their customers that they should red flag accounts that will be used for buying bitcoin.

It's best to consult your chosen bank or do an experiment with small amount first.

[DdmrDdmr]

<…>

Banks can freeze your account if is flagged for suspicious activity, and you won’t be able to withdraw in some cases until the situation is clarified. The flagging is normally not going to be manual, but likely Machine Learning based nowadays, and will take into account multiple aspects from the data it has on you, and other people from the entity. That means that one person may get flagged, but not another using the same bank, despite both having made TXs to/from Exchanges. On top of that, there’s the general bank policy and procedures, the country’s Central Bank directives, the country’s stand, the global or local regulations, and so on. Overall, the experience from country to country is likely rather different, with some countries being more laxed than others.

Unfortunately, from a user’s perspective, it is seemingly random on the surface, although the above are likely under the hood. We tried to list pairs of <Bank, Exchange> results on my local board (Spanish), but we don’t really have enough volume, and the cases seemed to vary from one experience to another, even using the same pair <Bank, Exchange>. Many seem to resort to proactively talking to their bank, in order to try to ensure that the TXs will go through without any hassle, which has its pros and cons, and is not going to achieve absolute certainty for all operations there on. Others wait for the problem to arise, if at all, and talk to their bank reactively, generally clearing the air after some stressful sessions.

[dothebeats]

Depends heavily on where you're from. There are some countries wherein trading with cryptocurrencies and linking it to your bank account will get you into trouble, so try to look for your country in the Local section of the forum in order to get answers from your people. We can give vague advices and answers to your question, but it's only you who knows where you're from. From where I am, bank accounts do not really meddle with cryptocurrency transactions and in fact are aligning towards integration of cryptocurrency into their financial services. This is a generalized statement from my region. It may work for you and it may not, so it's really important to seek advice from your people who already dealt with such in the past.

[Blitzboy]

I think the chance is pretty low. I only hear a few bank closing account for buying cryptocurrency while others' state is neutrality. Only strict regulations can force the bank to behave in such way. Even in my country where bitcoin is not recognized by the government, people are permitted to involve in cryptocurrency

[caffinated]

What are the chances of a bank closing your account if you buy bitcoin? i have heard people say they closed down their bank account for buying bitcoin, but this might have been a few years ago. he only said they closed his account, there is no chance of them taking all the money in your account, correct?

you should really post the country ure talkin bout for this to be relevant... chances are the story you have formed is false.
Banks dont like crypto its a fact... some big boys are warming upto the idea but its not main stream yet.
Your account will probably get flagged if ure trading frequently, money in and out, if ure just sending to the exchange changes are it wont come back in fiat form anytime soon so u SHOULD be ok.
Regardless its unlikely the bank will confiscate your funds unless u are linked to el chapo or stuff like that. The bank can sit on your funds indefinitely quizzing u on your source and transactions.

[Darkelf11]

What are the chances of a bank closing your account if you buy bitcoin? i have heard people say they closed down their bank account for buying bitcoin, but this might have been a few years ago. he only said they closed his account, there is no chance of them taking all the money in your account, correct?

Maybe the reason why their bank accounts got locked is because it become suspicious, but for sure you can reclaim it since it was all yours. Also it depends on your country rules on how to handle that kind of situation.
I think a way to avoid bank freeze is by choosing alternative ways to buy bitcoin. E wallets or is sure help. Less hassle and easier transaction than a bank.

[DeathAngel]

I think if you have a good, long term relationship with a bank then you will likely be OK. If you open a new account & the first thing you do is start dealing with crypto in large number ($) then you may have a problem.

[Woodie]

Like you said, a few years back yes bank accounts were closed for users buying bitcoin in countries were the government had banned the coin, but taking your money too I don't think so!

Besides buying crypto when price was low was a risk which is paying out well now.

[BrewMaster]

i have heard people say they closed down their bank account for buying bitcoin, but this might have been a few years ago.

there is some truth to that but the problem is that we never know the whole truth in cases like this.
there have been banks in the past and even today that are scared of bitcoin and want to prevent anyone from sending their own money to a bitcoin exchange to dump it for bitcoin. so they close their clients accounts.
but there are also a lot of cases that the user was doing something shady and their activities raised a lot of red flags that led to their account closure.

if you are worried then contact your bank and a lawyer and ask them about the laws you have to follow.

[ChrisPop]

I am not sure of what happens if a bank decides to close your account. What I know is that the authorities can't just take your money without a legitimate proof that you obtained them in illegitimate ways, but I think they could lock them until investigations are performed.

[isaac_clarke22]

Depends on the regulations in your area or country.

There was a misconception of closing of accounts of crypto in Nigeria just couple of months ago, but it was just that to not transact with cryptocurrency in the banks. It's not a total ban.


Source: https://www.coindesk.com/nigeria-central-bank-bitcoin

[Becky666]

What are the chances of a bank closing your account if you buy bitcoin? i have heard people say they closed down their bank account for buying bitcoin, but this might have been a few years ago. he only said they closed his account, there is no chance of them taking all the money in your account, correct?

In my country nobody will close down your Bank account because you purchase Bitcoin, rather, if you are operating a cryptocurrencies business in Nigeria you stand the chance of your business account to be close becasue of their ban, though don't really know if that's still much effective in the country. There's something they can't ban - if you're operating a P2P transaction the government or Bank can't ban you Bank account.

[ReiMomo]

What are the chances of a bank closing your account if you buy bitcoin? i have heard people say they closed down their bank account for buying bitcoin, but this might have been a few years ago. he only said they closed his account, there is no chance of them taking all the money in your account, correct?

As they said above it varies on which country you are in because each country has its own laws and banks always care about money laundering which should be regulated by the bank. This problem is very simple, just ask your local bank if they will allow you to buy cryptocurrency because for now, usually, they will freeze an account that has them suspect of having a large purchase, in or out of the bank. Because banks always wanted legitimate transactions, not illegal ones.

You must always aware of that matter in your country, if you don't have a choice of buying bitcoin in your country and avoid freezing your bank account, P2P exchange is the best choice for you.

[goinmerry]

What are the chances of a bank closing your account if you buy bitcoin? i have heard people say they closed down their bank account for buying bitcoin, but this might have been a few years ago. he only said they closed his account, there is no chance of them taking all the money in your account, correct?

Banks have their own and specific terms about that. Refer to the policy of the said bank.

And nowadays, it's not that the bank clients buy bitcoin using their cards that's why accounts are locked but if deposits came to that account are somehow become alarming, like a sudden big amount is coming regularly, it will be noticed and become a subject for investigation.

Just tell the truth during the process. Banks already know that bank accounts nowadays are being used for purchasing crypto unless they prohibited it from the start.

[mindrust]

What are the chances of a bank closing your account if you buy bitcoin? i have heard people say they closed down their bank account for buying bitcoin, but this might have been a few years ago. he only said they closed his account, there is no chance of them taking all the money in your account, correct?

Depends on where you live and which bank you are using. No they won't be taking your money unless you live in a dictatorship like China or N. Korea but they may refuse to serve you in the future. In these cases they usually let you withdraw your money and kindly show you the exit door.