Topic: Using a separate bank account for Bitcoin income - page 2. (Read 4880 times)

I can understand this for a demand deposit account, it's relatively easy to transfer this to another bank but for a mortgage (which if conforming is sold after booked) is a bit different.  The bank is basically out of the loan so to speak and has sold it off and is just acting as a payment processor.  I don't know what type of benefits they receive for this but it seems like another bank wouldn't be all that enthusiastic to take that responsibility on.

Are their any banks US based or worldwide that are Bitcoin friendly by policy?

For all those that state their "bank manager doesn't care" or "loves them" etc...  Watch out.

I've been peripherally involved with high-risk banking for quite some time now, and this is *always* the case.  A small time manager, VP level maybe, loves your business since it means great numbers and high margin for him.  He'll try to get more of it even.

Until his higher ups tell him to shut it down.  At that point, your bank manager who you thought was your best bud who had your back won't last an instant protecting you (he might push back once since he doesn't want to lose the numbers, but that will last a couple days at most).  Doesn't matter how he explains your business, how you've been a loyal customer on the up-and-up - you're gone either way and you have zero say in the matter.

And when they shut down accounts, they generally don't do it "nicely".  They'll make you fight for any dollars left in the account, and you'll be lucky to actually get any of it back.  Get a lawyer, and expect to be without those funds for up to a year.

So yes, if you run a bitcoin related business I highly suggest getting a completely unrelated account for those transactions at a completely unrelated bank in case the worst happens.

Remember - in the US when it comes to banking, you have almost zero rights.  The bank will be able to freeze assets at a whim, and you will need substantial legal services to retrieve any of those funds in some cases.  I've seen companies ruined over a bank deciding they no longer wanted to service a merchant account due to the high-risk (politically or financially), and freezing millions of dollars of assets long enough so the company could not make vendor payments.

I've learned that contracts basically means nothing. The major player can essentially do whatever they want and break any rule and regulation at a whim. They know most people will not fight them through the legal system.

If a bank shuts down your account and don't want to service you whatsoever, do you move everything to a new banks, or do you start a legal process that could take years? Most normal folks don't have the desire to waste resources on such processes.

What the contract says has next to no value, big companies and state entities always do whatever the hell they want to do. You could always point to the contract and said they've breached their promise, but at that point, if they're not cooperative, what else could you do ?

You could sue, and perhaps you'd even win, but the process would take a lot of time, and take a lot of resources from you, that you could spend on other more constructive things.

I think my bank manager don't give a damn unless I start to trade millions.

IAFCU has specifically said that they are not going to bully people around over bitcoins.

I think its better idea as if same 1 bank acc uses for all transactions then even if bank freeze account for any reason all money can be lost or held for long time

so better use new bank account specially for BTC transfers

thanks

and thats where the problem lays.. lies...

my UK bank manager knows fully about bitcoin and knows i trade bitcoin which to my surprise, over a year ago when first talking about, they are actually ok with it. as long as i stick to the limits etc. and thats still the same even now

BUT.....

those that LIE and say they are selling advertising or vouchers, and then when some scambag tries requesting your bank to refund them due to bitcoins(yes chargeback scum are not limiting their scumbaggery to paypal). your bank will start questioning why you lied about the purposes of your trades, and indeed believe the scambag's accusation that you defrauded them. causing you to then be investigated.

so please have a proper conversation with your bank manager and be honest about the purposes of trade.

a prime example is blockchain.info who from what i have read, told their bank they sold pre-paid advertising... now look, they no longer provide UK transfers direct

Anybody using Ally for these or other purposes?

Anything good or bad to say about them?

They are online only, debit card + savings account etc, I really don't need much more than this for my buying and selling of bitcoin.

People should stop using their private bank accounts to conduct business, if your trading btc go and open a business account.

Interesting about the mortgage.  I'm assuming the bank was just servicing the mortgage and sold it off long ago to Fannie or Freddie.  You would think there would be some sort of contract language where they can't just stop servicing the account without cause.  I don't think another bank would just pick it up like that as they probably don't make much if anything off doing so.

my wife would have my head if something like the above happened. its not about hidding anything but seperatioj of concerns.

It's not about hiding your income, but separating it from your accounts at your main bank, just in case the bank decides to terminate all business with you. In that case you don't have to switch banks and accounts. It's a precaution to save yourself a lot of potential inconveniences at the very least.

Because most banks are a high risk, and should be dealt as a risky investment and business opportunity.

Why do we need to hide our bitcoin income if you truly believe you're not doing anything wrong?

A friend of mine had his bank account shut down, and had to move his own and his wife's account and the mortgage too, the bank essentially said they did not want his business.

I just got an account with the Internet Archive Credit Union, took about 3 days for the phone interview, they have gone on record as supporting bitcoin so I would give them a try.

It's probably a good idea.  The thing to remember is it's more of an inconvenience than anything.  In cases where you're operating legally, a bank can close your account but they cannot freeze your funds.  They're basically saying, "we no longer want your business, you have 10 days to get your money out."  So it's not really the end of the world but it is a pain in the ass. 

We all need to be smart and manage our accounts well!

Get an offshore HSBC or Swedish bank account in Hongkong, Belize etc. I know some people did that, but they spend most of the years out of US.