Topic: Exchanges dont allow third party transfer, a friend cant send btc to my wallet? (Read 129 times)

I find it hard that this isn't possible. App wallets that supported btc supposedly can be sent through any  wallet at all. Segwit, or any kind of wallets. Depends on the nature of their btc type if Segwit or legacy. Of course process will be through withdrawals. What third party wallet your friend is using?

Its all about depositing fiat from your bank account and there is no such thing called BTC from third party since no one can verify who is the owner of the address so exchange will never have such restrictions. And also you can withdraw BTC to your desired address but you can't do that with fiat and actually this is why we have cryptocurrencies.

Exchanges can't detect if incoming Bitcoin transaction belongs to you or a third party, at least most of the time. They are actually more concerned about fiat deposits and withdrawals that concern third parties. For example Binance just won't allow you to withdraw to a bank account with a different name than the name that you registered at Binance. And you probably can't deposit fiat from a bank account with different name too, that could be abused by thieves and other criminals, or just be used to bypass some restrictions, like serving clients from sanctioned or unsupported countries.

seems to be to do with fiat deposits not btc deposits.

exchanges should not have any issue with deposits of BTC from random addresses to your btc exchange deposit address.

but when it comes to fiat deposits. your exchange account has a fixed relationship between your bank and the exchanges bank deposit number.
this is for KYC/AML reasons. and because the exchange does not use unique bank reference per customer and only associates a bank transfer to the exchange by the senders bank details. so someone else transfering fiat from their bank wont associate to your exchange balance.

the easiest solution is your friend pays you fiat to your bank first. and then you pay fiat to the exchange via your bank. that way the money goes to your exchange balance.

if your friend does not want to pay upfront(early) to then wait for the subsequent transfer by you to the exchange, and then buy btc for him. then you might have to "front" the payment by using your own funds to buy the btc first and then get paid by him after. then send the btc to him once your bank gets his money

if the issue is your friends fiat funds are in a different exchange(not his bank) then he would need to withdraw fiat to his bank. then bank transfer to your bank. then you from your bank deposit fiat into your exchange.

just try not to give him the btc before he has paid you. because you cant reverse a btc payment to him but he can avoid paying you and also reverse his fiat payment to you. so its a trust thing, do you trust him to pay you

This applies only for fiat currencies

The Bitcoin network doesn't care about your identity or private information.

I have never come across this issue wherein I have transferred BTC to so many addresses and vice versa but I didn't face this issue as bitcoin is meant for peer to peer transaction. Generally there is no such rules with any exchange as per my knowledge unless it has to do with Fiat deposits wherein your friend will not be able to do it.

Let me give you a few suggestions, since you have cash lying around and you want to buy bitcoin, can I assume you want to hold it not to trade it, right? If your intent is to invest in bitcoin, I suggest you should receive the bitcoin directly into a wallet that you are in control of, not onto the exchange addresses. But if you plan to use it for anything else, then just ignore it. Just in case you planning to hold the bitcoin for the long term, you should use the better way to store bitcoin.

There is no problem in receiving as much Bitcoin or altcoin as you want from your friend, if there is a system of referral bonuses and you do any suspicious behavior then they will definitely take action against you. If you use the exchange properly, there will be no problem in taking or giving funds from friends.

However, in the case of fiat money deposit, different rules, in case of fiat money deposit, you must send money through your registered bank. 3rd party service is not allowed here.

I have actually seen something similar to this on trade.finxflo.com but the only difference is that for any address you might have for your deposits and withdraws you are required to have all these addresses whitelisted unless you are sending to another exchange of which you need to make this indication of where the coins are going to(which exchange).

Thanks forreplying.
My question was more of a general nature and from the replies I think that the exchange meant funding a new wallet with fiat money.
But I will look into this incompatible issue you mentioned and should I run into this issue I will come back here.

I think it has indeed to do with funding in fiat money from a bank account.
I just wanted to make sure before I ask someone to transfer btc to my wallet.
Thanks for all of the replies.

Can you tell us what is the name of that third-party wallet that you meant?  I have doubt that because of the address, there are some third-party exchange/wallets that don't support transferring Bitcoin using the SegWit address from the Legacy address and I experienced this already.

If your friend wallet address starts with "1" and assuming you're using SegWit address wallet which is start with "bc1", they aren't compatible which is you can't transfer your Bitcoin from Legacy to SegWit address, but in SegWit to Legacy, you can.

However, don't mind the hackers.
They're smarter than us, the only one that could protect us is we should hold and have control in our private key and keep it safe.

If I'm wrong, please comment with further explanations.

The exchange doesn't know if the BTC is yours or your friend's.

He can send bitcoin to your wallet in any exchange.  I have received a lot of funds  from friends in binance  (btc dash xlm usdt), and never had any problems.

But you cannot receive third party fiat funds there.

Can you give a bit of backstory to this statement to this sentence, what do you mean third party transfers and what exchanges do not allow them?

AFAIK, you can only fund your exchange wallet (which you do not own by the way, as you do not have the keys) by sending the coins to the address from some other address, and there is no restrictions to that. If there should be any form of restrictions, it should be from using fiat and trying to fund your fiat wallet from the exchange using some other bank account not related to yours, or trying to withdraw in the same way.

The idea the exchanges have is they don't want to support 4 friends sending you $300 and having you buy $1500 and split it accordingly between the 5 of you (I think that's it anyway, just don't want people acting through other people).

You're fine to use an exchange account to receive funds from friends, I don't think the exchanges are against that.

Please somebody enlighten me here.
Exchanges do not accept so-called third-party transfers when trying to fund a wallet.
But does that mean when I already have a wallet, say a friend who owes me money, could not send bitcoin to my wallet address?
If that was so, how is it then possible that hackers could send the stolen funds to their wallet address, as the stolen  funds were of course kept under a different name?
Or how can people ask for donations by giving their wallet address, as I have a different name than the owner of the wallet asking for donations?
So what is the deal here if an exchange claims that third-party funding is not allowed?