Determining which banks allow cryptocurrency purchases is not as straightforward as you’d think.
In fact, even some of the large “crypto-friendly banks” that cater to the crypto industry aren’t necessarily the best options to support regular crypto transactions on behalf of individuals.
In short, opening an account that allows cryptocurrency purchases (or direct fiat transfers to a crypto exchange) isn’t as difficult as opening a UK bank account without proof of address, but it can still be challenging if you don’t know which banks (or platforms) to consider.
We’ll look at the different categories of banks that you can consider below, the countries that are most supportive of crypto, and why it’s so hard to open accounts.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
Which Banks Allow Cryptocurrency Purchases?
When it comes to choosing a bank that allows cryptocurrency purchases, you have a few different categories that you can consider. We will explore each of the categories below in detail.
1. Banks That Accept Cryptocurrency:
When it comes to traditional brick-and-mortar banking options, cryptocurrencies are typically treated in one of two ways:
First, the bank may put a complete ban on cryptocurrencies, crypto-related transactions, and customers with crypto-sourced wealth. If this is the case, these banks are not suitable for any customers that are involved in the crypto industry. In fact, even if a customer that is involved in crypto can open an account, it’s not uncommon for banks to close the account after discovering the account holder’s connection to crypto.
Second, the bank may turn a “blind eye” to crypto-related transactions. This appears to be common with some of the larger banks in established markets like the US, EU, and UK. However, this is not a solution that we suggest since sending and receiving funds related to cryptocurrencies still goes against the policies of these banks.
With this in mind, if you are looking to purchase cryptocurrencies (or send and receive transactions related to cryptocurrencies), we suggest considering one of the following options instead.
2. Trading Platforms That Offer Crypto (With Banking Licenses):
One of the most popular options for purchasing cryptocurrencies through a bank is actually through large trading platforms.
In fact, most of the large international trading platforms have banking licenses, allowing you to hold money on deposit as you would with any other bank. In many cases, these platforms are even protected by the same deposit insurance schemes as your local bank, depending on where it’s licensed and operates.
As for cryptocurrencies, they tend to offer anywhere from 10 to 35 different cryptocurrencies, including the largest in terms of market capitalization such as Bitcoin and Ethereum.
3. Cryptocurrency Exchanges:
While not a bank, another popular option for purchasing cryptocurrencies are the actual crypto exchanges themselves. In fact, crypto exchanges often offer the best rates, the lowest fees, and support a much wider range of cryptocurrencies than almost any other option. In certain cases, you can even access over 500 different cryptocurrencies.
Importantly, if you are going to open accounts with a cryptocurrency exchange, you should consider opening with a large platform with a clear history of stable operations in a regulated market. For example, the US, UK, and EU are all home to cryptocurrency exchanges.
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Frequently Asked Questions
Below are two of the most common questions that we receive from people looking to open a bank account to support cryptocurrency-related transactions. If you have further questions that you would like answered, don’t hesitate to get in touch with us directly.
Can I Buy Cryptocurrency Through My Bank?
Yes, in certain instances it is possible to buy cryptocurrency through a bank. However, it depends on the bank’s policies and whether they offer cryptocurrency as a product to their customers.
Some banks even have trading platforms that allow for cryptocurrency purchases and trading. However, this is typically only offered to high-networth customers at the premium and private banking levels (or as a wealth management product).
Why Does My Bank Not Let Me Buy Cryptocurrency?
Many banks still do not let customers buy cryptocurrency directly. In fact, many banks will close customer accounts if they believe a portion of the wealth or income derived is from cryptocurrency-related activities. There are several reasons for this, but ultimately it relates to a perceived lack of transparency with cryptocurrency transactions.
Ready to Open a Bank Account?
If you would like assistance navigating your banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions, please get in touch with us directly.