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What to do if banks block cryptocurrency accounts

How do I make a chargeback for fraud

Despite the prevalence of cryptocurrency exchange services, the legalization of such financial transactions has not yet taken place in full. Some countries have regulated the process of buying and selling cryptocurrencies at the legislative level. However, most countries have not yet taken any settlement measures. That is why some banks block cryptocurrency transactions. To avoid a sudden blocking of the account when withdrawing cryptocurrency, it is necessary to work only with crypt-friendly banks.

Due to the lack of legislative regulation, there is a slowdown in the spread of Bitcoin and other cryptocurrencies as means of payment. The slowdown occurs both at the level of government bodies and at the local level of banks. However, the worldwide pandemic has given cryptocurrencies a second chance. In panic, people looked for ways to save their money as the global economy began to slow down. Most people saw Bitcoin and other cryptocurrencies as a great way to diversify risks. However, not all of them purchased cryptocurrency because they were afraid that banks would block their accounts.

Regulation of cryptocurrencies in Ukraine

Cryptocurrency in Ukraine is not regulated, it is in the gray zone. This market is weak in Ukraine, the SIE is in no hurry to pass laws on cryptocurrencies. A draft law “On virtual assets” was submitted to the Verkhovna Rada of Ukraine, but it was not adopted.

The National Bank of Ukraine (NBU) also drew attention to cryptocurrencies and identified transactions with cryptocurrencies as high-risk. Therefore, Ukrainian banks often block cryptocurrency transactions. All that remains for Ukrainians is to contact banks working with cryptocurrency.

If strict regulation of digital currencies begins in Ukraine, banks will begin to massively block the accounts of their clients suspected of buying cryptocurrencies. Therefore, until a single law regarding cryptocurrencies has been adopted at the legislative level, you can not worry about blocking your account. The only thing is, if your card transfers to a suspicious account or an account with many complaints, your account may be frozen.

Why the account is blocked when withdrawing cryptocurrency

The problem with the exchange of digital currencies occurs in almost all countries of the world, one of the most difficult situations with the exchange of cryptocurrencies in the UK. UK residents have huge problems buying or selling e-money. The blocking of bank accounts associated with cryptocurrency is carried out even without warning.

Not all banking institutions freeze accounts without warning, but organizations that value reputation turn to digital currency-friendly banks. Banks that work with cryptocurrency are no worse than banks that do not work with digital assets.

The most difficult situation for the clients of the British bank Lloyds. The organization instantly blocks Bitcoin transactions when using a Coinbase debit card. In connection with the blocking of the transaction, users contact the support service, where they are explained that the ban is in effect due to an attempt to acquire digital assets.

What to do if a bank or payment system has blocked or closed an account

Blocking a bank account can be very bad for both the trader and the investor. Moreover, blocking occurs unexpectedly at the most crucial moment. You can periodically buy or sell cryptocurrency and everything will be fine with your bank account, but at an unexpected moment the account may become unavailable.

The fact is that banks can block any transactions related to digital currency. The bank may also require you to provide documents or evidence of where the money came from or for, and whether the money is legal. Alas, all you have to do is follow the instructions and requirements of the bank in the hope that it will unblock your account.

If you have fulfilled all the requirements, provided documents and explained the origin of the funds, but the bank did not unblock the account, you need to go to court. There is no other way out, only a trial in court. However, this is an expensive and time-consuming process, so think a few times before filing a claim in court.

We do not recommend doing this, since today in no CIS country the cryptocurrency is not recognized as an electronic means of payment at the legislative level. Most likely, you will lose the court. Many banks block cryptocurrency transactions because they know that the court will be on their side.

Opening an account for cryptocurrency projects - the best cryptocurrency banks

Bitcoin is not just an investment asset that you buy and then sell. Bitcoin is so much more and many of us don't realize it. However, some banks realized that digital currencies pose a serious threat to them and therefore stopped serving the cryptocurrency business.

The biggest banks in the world are the most skeptical about Bitcoin and blockchain, because they have never faced such strong competition from the Internet industry in the financial sector. Blocking an account when withdrawing cryptocurrency - this is what all owners of bank accounts in large banks have encountered.

Some British, Australian and American banks have categorically banned the use of credit / debit cards to buy Bitcoin or other digital currencies. However, there are banks that, instead of stifling digital currencies, are building blockchain infrastructure and are also friendly to them.

Due to a reluctance to work with outdated traditional banks, many investors and crypto enthusiasts are looking for more friendly banks to interact with the cryptocurrency world. Opening an account for cryptocurrency projects in such banks is easy. Below are the best banks working with cryptocurrency.

  1. Wirex

  2. Wirex is a provider of cryptocurrency wallets and crypto-friendly banking services for buying / selling digital currencies. He is based in London.

    Wirex services are available in dozens of countries around the world. The bank provides bank accounts with UK numbers. This cryptocurrency bank provides secure cryptocurrency transactions. All bank accounts of this bank are registered with the UK Financial Conduct Authority.

    The bank provides its clients with a real debit card. Using a Wirex card, you can receive cryptoback in the form of BTC. By paying in the store, you will receive 0,5% of the amount spent in BTC.

  3. Change

  4. Change is the second most popular digital currency-friendly startup in Europe. Change has received significant funding from investors. The startup provides trading in Bitcoin, Ethereum, Litecoin and Ripple.

    Change has its own apps for iOS and Android, but currently only European clients can use them. Change will soon launch its credit / debit card, obtain a European payment license, make fiat wallets and IBAN numbers.

  5. Revolut

  6. Revolut is a UK registered company. It started out without a license, but since its launch in 2015 has grown into a full-fledged bank with over 2 million clients. Their service is available for the countries of the British and European region.

    Most importantly, Revolut allows businesses and individuals to interact with cryptocurrencies using a Revolut bank account. The startup also provides accessibility features that allow you to buy bitcoin or other cryptocurrencies.

    Revolut offers three types of accounts: Standard, Premium and Metal. You can choose the one that suits you best for making international transactions.

  7. Bankera

  8. Bankera is a blockchain and cryptocurrency startup. Bankera's goal is to become the link between the traditional banking world and blockchain technology. Bankera is a startup similar to traditional banks, but built on the blockchain. It provides many benefits to its customers.

  9. Monaize

Monaize is an integrated banking platform for cryptocurrency and bank account users. It is a European e-banking platform. It is designed for freelancers and small businesses.

Monaize aims to function within the existing banking infrastructure, drawing the attention of users and small businesses to itself and digital currencies. Monaize provides its services in the UK, Germany and the USA.

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