Barclays closing bank accounts related to Bitcoin

ashatak

newbie

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Hi, I just wanted to ask what happened to the money that was in your account? Did they let you take out the money before closing your account?

I am having some issues with Natwest recently, they keep holding money when I'm making payments to other people and saying its a random fraud check, but the money is shown as left my account so creates problem with people as they think I've not sent a payment.

Regards

Quote from: gsingh on December 09, 2013, 06:33:47 AM

Hi,

Just want to share my Barclays experience with you guys here.

I opened an account in Barclays so that I can sell or buy coins at bitbargain.co.uk. They opened my account and after 3 days I received a letter that they will be closing my account soon. They haven't given me any specific reason.

Then I came across to this post.

http://www.reddit.com/r/Bitcoin/comments/1sgcm6/my_bank_has_frozen_my_account_because_i_sent/

I have another account with Natwest and I have been using that account for buying coins from localbitcoins. My guess is that they did some sort of history check and didn't like that I have been buying Bitcoins.

CoinCidental

legendary

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Si vis pacem, para bellum

unlikley to get a reason IMO
theyre just covering themselves and they will point to their terms and conditions dictate they can withdraw anyones banking priviledges at any time for any reason at their discretion or some such bullshit.........

lots of people have had banks closed for sending /recieving money to known btc exchnage accounts like gox and the others

jonnybgood

newbie

Activity: 16

Merit: 0

This has just happened to me my online account has been lock but its very annoying as I am merely a very small monthly buyer of about £200-300 of BTC and I always purchase from my personal account with all my debits and everything and I don't really want my account closed if I can avoid it. I was only trying to buy 0.3btc from localbitcoins but they locked the account, I have had an account with them for 25 years so I don't see how they can shut down my account for doing something that isn't illegal? They may say I can't buy more coins or something but I can get an RBS account as well if needs be, anyone recommend a better UK way/bank?

I have to contact the fraud department but I don't really know what to say I will have to ask them why my account was locked and presumably they will bring up BTC purchases, I buy them legally as far as I am aware and the purchase didn't break any laws so they have no reason to block the purchase for future coins presumably? Or are they now going to investigate me or something?

film2240

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Freelance videographer

Quote from: scribe on December 11, 2013, 04:54:31 PM

Quote from: film2240 on December 11, 2013, 04:02:39 PM

I'm very glad I stumbled across this thread as my 2nd bank account is a Barclays one (and I have PingIt setup too.It's tied to my Barclays one).I don't use it as my main account so nothing gets lost if it's closed.

The reason I'm concerned is I've done several trades with BTC involving my barclays account (all exchanges from BTC to GBP) but does the act of using Mt Gox or a private seller like I've done recently (as Mt Gox is taking a long time to verify my ID) affect my Barclays account at all? Or am I worrying a bit too much? I'd appreciate some clearer guidance on this.Thanks

I think the main thing to remember is that bank accounts aren't kept open purely for your benefit (as a customer) - they're more just a way for banks to look after and use your money. Defending against fraud is more important to banks as it affects their actual bottom line, rather than whether a few people decide to "like" their bank or not.

From what I've seen, there are 2 things to look out for - firstly, risk of "infection" from accounts involved in fraudulent activity, such as money laundering. And secondly, "abnormal patterns" which flag up "unusual" activity against an account. Setting up an account recently, I noticed they ask a few questions about expected incomings/outgoings, so it may be worth asking in advance about this, to avoid going outside expected bounds. A bit like telling them you're going to be using your card abroad.

Whether you actually have any control over either of these is another matter, natch.

Thanks a lot.I appreciate the insight into how banks think as opening account for customers has to benefit them (the banks) as well as the process can seem mysterious at times to the consumer as well

scribe

sr. member

Activity: 295

Merit: 250

Quote from: film2240 on December 11, 2013, 04:02:39 PM

I'm very glad I stumbled across this thread as my 2nd bank account is a Barclays one (and I have PingIt setup too.It's tied to my Barclays one).I don't use it as my main account so nothing gets lost if it's closed.

The reason I'm concerned is I've done several trades with BTC involving my barclays account (all exchanges from BTC to GBP) but does the act of using Mt Gox or a private seller like I've done recently (as Mt Gox is taking a long time to verify my ID) affect my Barclays account at all? Or am I worrying a bit too much? I'd appreciate some clearer guidance on this.Thanks

I think the main thing to remember is that bank accounts aren't kept open purely for your benefit (as a customer) - they're more just a way for banks to look after and use your money. Defending against fraud is more important to banks as it affects their actual bottom line, rather than whether a few people decide to "like" their bank or not.

From what I've seen, there are 2 things to look out for - firstly, risk of "infection" from accounts involved in fraudulent activity, such as money laundering. And secondly, "abnormal patterns" which flag up "unusual" activity against an account. Setting up an account recently, I noticed they ask a few questions about expected incomings/outgoings, so it may be worth asking in advance about this, to avoid going outside expected bounds. A bit like telling them you're going to be using your card abroad.

Whether you actually have any control over either of these is another matter, natch.

film2240

legendary

Activity: 1022

Merit: 1000

Freelance videographer

I'm very glad I stumbled across this thread as my 2nd bank account is a Barclays one (and I have PingIt setup too.It's tied to my Barclays one).I don't use it as my main account so nothing gets lost if it's closed.

The reason I'm concerned is I've done several trades with BTC involving my barclays account (all exchanges from BTC to GBP) but does the act of using Mt Gox or a private seller like I've done recently (as Mt Gox is taking a long time to verify my ID) affect my Barclays account at all? Or am I worrying a bit too much? I'd appreciate some clearer guidance on this.Thanks

Nullu

hero member

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It's a shame really. The Banks see Bitcoin as competition. It's not going anywhere. The logical thing to do would be to embrace it, rather than fight against it.

CoinCidental

legendary

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Si vis pacem, para bellum

Quote from: efc17 on December 10, 2013, 04:53:05 PM

Thanks for the info,

I find that worrying.
Does anyone know if this would apply to Barclays pingit? I have it linked to a non-Barclays a/c and use it to buy/sell BTC from time to time.

if you opened them both with the same id,name ,date of birth or national insurance number theyre probably linked whether you like it or not

one way around maybe if you have a wife or gf ,brothers or sisters ,parents etc who could help out with accs

im not 100% sure but id imagine ANY account that is sending or recieving shitloads of cash to mt gox or another exchange
will be under scrutiny and eventualy red flagged for investigation or frozen or in your case just point blank closed

Without any proof they cant accuse you outright of being a tax cheat ,money launderer or even silk rd dealer but thats probablly a possible liability theyre considering by closing your account for no reason given

Jcw188

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Carpe Diem

Quote from: cryptasm on December 09, 2013, 08:26:55 AM

Slightly ironic been as Barclays has an entire building dedicated to tax evasion for corporations/rich people Grin

. I've had an account with these shitheads for about 15 years and I've had nothing but hassle, will be interesting to hear what they say at your local branch.

If you can be bothered, you could complain to a financial ombudsman: http://www.financial-ombudsman.org.uk/consumer/complaints.htm

Better yet try joining, or start your own credit union.

If you're rich enough, they'll help you do whatever you want. It's us poor people who they act all high and mighty about.

efc17

member

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Merit: 10

Thanks for the info,

I find that worrying.
Does anyone know if this would apply to Barclays pingit? I have it linked to a non-Barclays a/c and use it to buy/sell BTC from time to time.

CoinCidental

legendary

Activity: 1316

Merit: 1000

Si vis pacem, para bellum

Quote from: DeboraMeeks on December 10, 2013, 02:03:02 PM

I saw some of these and it's strange they knew you were selling bitcoins as the transactions themselves don't indicate anything . Did all the money go through properly with no "chargeback" issues? or do they somehow recognize payments related to bitcoins?

its more likely the exchanges bank accs are on a red list and when they saw him dealing with BTC exchanges they decided to shut
him down in case he was laundering or evading tax or whatever weak excuse they could come up with

notable that they didnt give him a reason for his account closure so he could have a counter argument that his BTC came from honest work tc

DeboraMeeks

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I saw some of these and it's strange they knew you were selling bitcoins as the transactions themselves don't indicate anything . Did all the money go through properly with no "chargeback" issues? or do they somehow recognize payments related to bitcoins?

medUSA

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Quote from: solex on December 10, 2013, 05:09:28 AM

https://uk.virginmoney.com/virgin/
Can't see them closing bitcoin user accounts.

This is promising. May be Virgin Money has a different stance on bitcoin user bank accounts. Certainly worth a go.
If we are lucky, may be we can buy and sell bitcoins directly from the bank in a few years' time? (dream on)

solex

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100 satoshis -> ISO code

This was pointed out elsewhere.
Virgin Money in the UK is owned by Richard Branson, who also owns some bitcoins and recently said he accepts them for Virgin Galactic flights.

https://uk.virginmoney.com/virgin/

Can't see them closing bitcoin user accounts.

Sindelar1938

hero member

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Dinosaurs trying to fight off the inevitable
Pathetic behaviour but logical

lindatess

full member

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Yes, it's best to sell/buy in cash. You should always ask for this option.

scribe

sr. member

Activity: 295

Merit: 250

Has anyone proactively asked their bank about their stance on Bitcoin? FirstDirect seem very happy to chat generally, but not sure how much control over the account they have, given they're backed by HSBC. Might give them a call some time anyway. (And has anyone had any issues with using an HSBC/FirstDirect account for trading?)

canada

member

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in this interview with charlie shrem, he said the bank told him in so many words btc will be a competitor to banks so they will make it difficult for business accounts. http://www.youtube.com/watch?v=6tWtTsvmHJg

guess now it might be spilling over to user accounts ..

don't trust banks. ahem barclays and libor scandal

gsingh

member

Activity: 146

Merit: 10

I really started to hate Banks now. Can't wait for the day when Banks will be an option!

Anyway, I went to branch and they said their review panel is not happy with the details I provided and they can't give me any more information. I can try to reopen account after a year or two Huh

.

cryptasm

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Gamdom.com

Slightly ironic been as Barclays has an entire building dedicated to tax evasion for corporations/rich people Grin

. I've had an account with these shitheads for about 15 years and I've had nothing but hassle, will be interesting to hear what they say at your local branch.

If you can be bothered, you could complain to a financial ombudsman: http://www.financial-ombudsman.org.uk/consumer/complaints.htm

Better yet try joining, or start your own credit union.

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