Question for UK Bitcoin traders (banking related)

Pteppic

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Quote from: davout on October 17, 2012, 04:30:07 AM

It's very precise :
...
- Only licensed financial institutions have the right to open "accounts" for the general public and more generally store funds on behalf of third-parties.

Yeah, I've not had any trouble and I don't expect any and I've received bank transfers, international wire transfers and SEPA transfers from various exchanges.

My bank is sending and receiving funds from registered, documented businesses. Intersango's bank is receiving and holding funds from, well, they don't really know who and that was a big part of the problem.

davout

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1davout

Quote from: tenakha on October 17, 2012, 05:39:52 AM

Again thats related to the fact that Bitcoins are not issued by a Government or a National Bank.

No, it's related to the fact that there are precise rules as to who can open accounts, and store currency on behalf of a third-party.
The problem would be *exactly* the same even if Bitcoin was regulated or if exchanges were dealing with bananas.

tenakha

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OK, yes that makes total sense.

Again thats related to the fact that Bitcoins are not issued by a Government or a National Bank.

Its not a recognized currency as such. As someone at the London Bitcoin conference said: "Its unregulated at the moment, and not many people 'get' it" ...

davout

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Quote from: tenakha on October 17, 2012, 04:03:07 AM

As we have seen that both Intersango and mtgox have had issues with their banking facilities in the UK (I don't knw the exact details - perhaps someone can elaborate?).

My question is aimed at the small/medium sized traders of Bitcoin who are taking payment into their personal bank accounts/paypal accounts:
Has anyone had issues with the banks objecting to deposits/withdrawals if they are related to Bitcoin?
Has anyone had their account shut down?

I avoid making/receiving payments now via bank/PP as much as possible. I just do small cash transactions face to face, as I am wary that eventually if the banks catch on that its bitcoin being traded they will shut the accounts down - both buyer and seller.

Can anyone shed more detail on this?

Thanks.

The reason bank accounts from exchanges get frozen is not that they deal or are related with Bitcoin.

It's very precise :
- Banks have the obligation to ascertain the real beneficiary of funds that are deposited, with a Bitcoin exchange they can't.
- Only licensed financial institutions have the right to open "accounts" for the general public and more generally store funds on behalf of third-parties.

The problem has nothing to do with Bitcoin in itself.

tenakha

hero member

Activity: 1470

Merit: 509

As we have seen that both Intersango and mtgox have had issues with their banking facilities in the UK (I don't knw the exact details - perhaps someone can elaborate?).

My question is aimed at the small/medium sized traders of Bitcoin who are taking payment into their personal bank accounts/paypal accounts:
Has anyone had issues with the banks objecting to deposits/withdrawals if they are related to Bitcoin?
Has anyone had their account shut down?

I avoid making/receiving payments now via bank/PP as much as possible. I just do small cash transactions face to face, as I am wary that eventually if the banks catch on that its bitcoin being traded they will shut the accounts down - both buyer and seller.

Can anyone shed more detail on this?

Thanks.

Topic: Question for UK Bitcoin traders (banking related) (Read 1146 times)