chances of bank closing account if you buy bitcoin

[hatshepsut93]

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.

Depends on the bank and the country. I have heard about cases when bank decided to close customers account over suspicious activity and they sent their money to another bank account of their ex-customer within hours. If there's no law enforcement order, banks may not hold your money for long. But generally, it's better to be ready for anything, and contact your bank before you're going to withdraw a large sum from exchange.

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.

To banks, a crypto-related transactions are as suspicious as cash transactions, and they can be fined if the government will prove that criminals used their bank for money laundering via crypto.

[CaVO32]

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.

That's the right thing to do. Because each country has their own regulations and approach towards crypto. So no one can give you a specific answer unless you will tell where are you currently residing. It is better to ask your co-users in your local section as some of them are already old here and one way or another, some of them have had experienced dealing with your local banks. But if not, you can always use your friend google and search the bank laws in your country towards crypto. Nowadays, it is easy to get a hold of info because you can use the search engine anytime.

[tanjiran]

it all depends on government policies regarding bitcoin and cryptocurrency in general.
as an official state agency, a bank will strictly enforce the predetermined rules regarding finance. If the state bans anything related to bitcoin, including buying or selling it, then banks are one of the most important posts to find violations. so it is natural that bank accounts are frozen when it is known that there are suspicious transactions related to bitcoin.

on the other hand, if there is no prohibition from the government, then the bank does not have full authority to do so.

[GeorgeJohn]

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?

That's a fallacy and its a propaganda from my perspective because it's has no happened before to anyone or anybody using Bitcoin for transaction purposes, it actually this is a truth, I think it needs proper clarification or evidence, and if a particular country innate a law of banning any account that use cryptocurrency for transportation obviously it will not affect another country.

[Nanda Dewi277]

If the country banned Bitcoin and also crypto, it may make sense that every bank revealed that the money comes from exchanges or crypto selling, they can close the account. However it commonly based on the initial announcement, the user commonly accepts the notification. But about the money is back or not it may depend n the faults and also mistakes. however, the rule is a rule that should be utilized during this time.

[ivankoh]

on the other hand, if there is no prohibition from the government, then the bank does not have full authority to do so.

Up until this point, I am glad that my country is still a neutral player for the bitcoin situation and crypto-related.  In my opinion, the government can make a "ban" decision if it affects economic and social trends, or disrupts the balance.  If they wanted to, there would be certain votes, and openly and transparently to the parliament.  Before the banks could do anything?  It is not like the Turkish story, the secrets behind will cause a lot of contradictory controversy.

Banks, governments are still the enemy of bitcoin, it has happened many times, never ending!

[cabron]

Just keep watching for an update of your government's stance on Bitcoin because things could change all of a sudden and then your money is frozen. This is dangerous so I don't recommend you going to a bank and inquire about Bitcoin or cryptocurrency transactions with them because you don't know the person you are talking to and he might just dedicate himself to bring you down because you plan to make crypto transaction.  

I once read a thread here in bitcointalk about someone asking a teller/something like that in the bank which now could potentially ruin his financial freedom.

[maxreish]

Which country are you residing at? Some particular banks under the regulations of their country, prohibits the purchase of bitcoin that would be the reason why they are freezing or probably closing their bank accounts.

Its very important to know the bitcoin legalization of your country before doing anything. And it is better to be supervised by those who have experienced in buying bitcoin in a bank as there are also banks that are crypto-friendly.

[crwth]

I once read a thread here in bitcointalk about someone asking a teller/something like that in the bank which now could potentially ruin his financial freedom.

I think I remember a similar thread about that. I know that they really froze the clients accounts knowing that he has acted on buying BTC and telling the bank without knowing that it's not allowed. I'm not sure if they gave him his money back or something but it's still a risk to be involved in banking systems that doesn't support this kind of finance.

[OcTradism]

Which country are you residing at? Some particular banks under the regulations of their country, prohibits the purchase of bitcoin that would be the reason why they are freezing or probably closing their bank accounts.

Its very important to know the bitcoin legalization of your country before doing anything. And it is better to be supervised by those who have experienced in buying bitcoin in a bank as there are also banks that are crypto-friendly.

On some exchanges as Remitano or Paxful, in your trade, you and your trade partners don't have any information that your bank transfer is made for cryptocurrency trade. Remitano gives you a code for your bank transfer. Paxful give you and your trade partner a trade chat to fill in trade details.

It is difficult for banks to know your trades are for crypytocurrencies. Just secret trades now but in the future, governments can enforce banks to trace money flow and discover cryptocurrency trades.

Because your bank transfer does not have details that it is for crypto trade, if you get scammed, you can not request support from banks or police. Side effects of secret trades in nations that cryptocurrency trades are not officially accepted by governments.

[target]

If there is a slight chance that the countries policy regarding Bitcoin can become harsh while you have used your bank account in buying BTC, they probably will close your account given that banks had done horrible things before. I'm sure they could try tracing the transactions in your bank account.

They could trace the BTC purchase from P2P and if they hate or not adopting BTC in your country, they will freeze your account.

[Henrobakkara]

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?

This can not be general and I believe it basically depends on Countries policies with regards to cryptocurrency trading, so if for any reason your government have policy against crypto and some sort of instructions have been issued against that with bank accounts trading crypto, then that can happen else, bank accounts are usually closed if flagged for any suspicious reason until verified OK.

[mbe48]

in my opinion, it depends on the policies and regulations of the country. But I just heard that there is a policy that the crypto owner concerned with the bank will be closed by the bank. If for negative reasons it might happen, such as money laundering for example.

[Alucard1]

It is only limited for some countries so you should know your government policy first before engaging with cryptocurrency, banks are against cryptocurrency so always make sure that you know first the nature of it. Thankfully we don't have this kind of system in our country. It

in my opinion, it depends on the policies and regulations of the country. But I just heard that there is a policy that the crypto owner concerned with the bank will be closed by the bank. If for negative reasons it might happen, such as money laundering for example.

Yeah, it really depends on the policy of a country, that is why we need to research first before trying some new to avoid things like this. Some countries are considering people who use cryptocurrency as criminals.

[nicecrypto]

It is only limited for some countries so you should know your government policy first before engaging with cryptocurrency, banks are against cryptocurrency so always make sure that you know first the nature of it. Thankfully we don't have this kind of system in our country. It

in my opinion, it depends on the policies and regulations of the country. But I just heard that there is a policy that the crypto owner concerned with the bank will be closed by the bank. If for negative reasons it might happen, such as money laundering for example.

Yeah, it really depends on the policy of a country, that is why we need to research first before trying some new to avoid things like this. Some countries are considering people who use cryptocurrency as criminals.

Yeah that is true but unless the banks in your country wants to call you to explain every single transactions that is going on in your account, most people from such countries where this is happening have resulted to trading crypto with p2p with no mention of any crypto related info in transactions. I think that's a better way out.

[Lorence.xD]

Depends on which country you are from, in my country, there seems to be a loose or little to no regulation so it doesn't really matter how you get your money unless you act suspicious. I haven't tried buying bitcoin with a bank account since there isn't a lot of perks and it isn't the norm in my country to have a bank account unless you are in business or you are earning a lot of money.

[kryptqnick]

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 think it really depends on the country, like others mentioned, but also maybe on the bank as well. In my country, cryptos aren't regulated officially and the overall attitude to them is favorable (it's just that the Parliament cannot work out the details of how to treat them, but the ban is totally out of question). So buying or selling cryptos and using a bank account doesn't raise suspicions (perhaps it does if the sums are big, but then the authorities would just be interested where big sums of money come from, but not whether they're in cryptos or fiat). If things are worse in this respect in your country, I wouldn't risk it. If your country has various banks with different policies, perhaps you should google which banks are okay with cryptos because it can also be that some banks are against cryptos whereas others are fine with them.

[SquallLeonhart]

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 haven’t experienced that before, but I think if bank closes your account they are going to give you your money back, or isn’t that how it works? Anyways, for a bank to freeze or close your account it depends on the kind of activity that they notice on your account, there is an amount of money that come into your account all of a sudden and if it’s far too bigger than the regular amount that comes into your account, then they may suspect you. Then another thing is whether cryptocurrency is legal in your country, because if it is not, if you’re caught making use of it you will be having problem with the law and will even lose your assets.

So, these are things that you should put into consideration. Then be careful, it will be best for you to be making use of P2P exchanges, you wouldn’t have all these problems if you are using P2P and Dex exchange.

[aysg76]

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?

If there are crypto related restrictions imposed in your particular region then surely banks can freeze your account for trading in bitcoin.So it depends in which country you are living.Mainly banks close or freeze account if they found huge money flows in your account and you do not have valid proofs to provide the source of income as you have to file income tax returns.If you have sold Bitcoin it comes under capital gains so banks require you to provide source of income for filing and if you failed to provide so then surely they can close your account.This is the main problem with centralized money authority that your funds are their custody and you need to provide them with documents whenever they require and can impose restrictions on spending your funds which is why you need to have decentralised currency like bitcoin for freedom.You can sell P2P Bitcoins and have money in hand rather than in your bank accounts to avoid any further inconvenience.

[Vaskiy]

In several countries this has happened with the banks. When such thing happen people look for the loop holes and the alternate way to buy bitcoin. Even in my country people were with fear of buying bitcoin, because the government hasn't given any precise information whether people are free to use or it is banned. Where there is will, there is way. This is the reality with using bitcoin.