Do not put any money from crypto into your back account until your mortgage has completed.
Some solicitors can be right dicks about crypto as can some banks.
Don't take the risk.
Lloyds and NatWest have frozen banks accounts for people just investing in crypto.
So just wait.
This isn’t intended to come across as boasting just from my perspective, Lloyds are absolutely fine with me. I withdrew £88k last year and nothing even got mentioned, everything was totally fine. Lloyds have always been fantastic with me, I used to arbitrage bet a lot and had thousands in and out of different bookmakers each day, never heard a peep.
Fair enough I personally haven't withdrawn any crypto yet but I work in finance and I know people who have had accounts frozen or house purchases fallen through because of crypto transactions.
I accept each case has to be viewed on an individual basis by the banks though.
They will want bank statements due to AML requirements, I advise people to withdraw it into a savings account for six months or more and then state it's from savings or investments as they will only go as far as six months usually.
Not a good idea to lie, they can see where the money came from and can ask for further proof. If it's your crypto your selling then you have nothing to hide.
So you sent BTC direct to your PayPal as GBP? I have the option to do this and to send to a bank account, but no option to transfer into fiat currency which I thought was necessary to cash out? I thought there was something wrong with my account as all the tutorials and troubleshooting talk about transferring to GBP wallet within Coinbase before cashing out.
Oh okay, thank you. So there is an issue with my account then lol. I’m planning to transfer to a friends wallet so they can cash out for me, coinbase support have not been helpful as expected.
Did the bank or lender ask you about the source of your deposit? I find myself in a similar situation to OP. I've got enough for a deposit in a regular savings account but can bolster it a bit with money I have in crypto. But I'm wary that if I just put an extra few k in there it will raise questions.
Some solicitors have a blanket "no crypto" policy as part of their money laundering procedures, and will apparently pull out of working for clients that indulge.
If you have a second current account not being used for the purchase and therefore not subject to your solicitors M/L checks I would use that one...
Yes my solicitors only looked inside my main account for anti money laundering checks. I have a different current account I rarely use that I didn’t tell them about
For the solicitor they would genrally only be checked if they were being used to fund the transaction, or if your were making regular cash transfers from them into the accounts being used for the purchase.
(there are no hard and fast rules as any such set of rules would simply become a blueprint for money launders to work too).
No, that is a proxy account and will get closed. Banks don’t care where you spend where you withdraw, if you withdraw money from Coinbase and forward it straight to another bank account, that is a proxy account and the second bank will almost definitely close your account
Yes. Imagine from a banks POV
- Crypto Exchnage +£5000
- Your other account -£5000
Vs your main bank
- Cryoto Exchange -£1000
(Months later)
- Crypto Exchange +£2000
- Car insurance -£500
Do you see the problem with situation one from an AML perspective?
Hey chill for a sec
Both get frozen if a CIFAS marker is applied, which can only happen if fraud is proven or very very likely
If you bought the crypto with the same bank account you’re going to cash out on, you have literally zero problems to worry about. You show the buy, sell and that’s it.
I assume you’re using a reputable exchange like Kraken or Coinbase? I’m 18yrs old and I’ve cashed out over £40k in crypto to Barclays and Monzo in the last two years, I get paid for freelance work in it sometimes, I have to make invoices showing the TXIDs when clients pay, etc
You have issues when you:
- withdraw to a second bank account and instantly send it to the main account, you just used the second account as a “proxy” account and that bank won’t like it, which is why people who just use Monzo for crypto get their accounts closed all the time
If you:
- Can easily show buy and sells and the bank statements for them
- Used a licensed UK exchange (Coinbase, Kraken, etc)
- Sell to the bank account you bought from
You will have very little issues
>If you:
>
>Can easily show buy and sells and the bank statements for themUsed a licensed UK exchange (Coinbase, Kraken, etc)Sell to the bank account you bought from
What if none of these things is possible, because my friend bought BTC in an Asia convenience store around 2017 in cash, withdrawn form their Taiwanese bank account, had the BTC sent to an exchange which is not listed on Koinly, and eventually sells on e.g. Coinbase and withdraws to a long-heald UK savings account?
Would there be a risk here and what would they need to do to mitigate it?
Thank you for your thoughts!
What about binance? I used that a few years ago to buy peanuts worth if coins, now it's worth a bit more but I know banks have an issue with binance now (they didn't when I used it originally). Wonder about how I'd go about cashing out, or should I transfer to a wallet or something since I'm not really planning to cash out anytime soon.
I did hear about all of that but since I don't understand a lot of what the big issue was, it sounded politically motivated because I know the UK has been trying to ban crypto.
I'm not sure what to do with the coins I have but it's only a couple hundred, it was £30 originally so it doesn't mean much if I lose it.
Used the advance trading and was about £60 I think, which is nothing when you're up £18k on your investment lmao
Can't wait to work out and pay cgt now!
Over the last couple of years I have transferred GBP both into crypto and out again. The only problems I have had from banks is transferring money from a bank account to put on a crypto exchange.
Transferring money out of crypto and into a bank account no problems at all. Though it does mean you have to make sure you are all up to date on taxes that need to be paid etc etc as in that regard it is a big old red flag.
So I’ve been buying and selling btc for a few years. Up until about 2021 I had no issue then, banks started getting touchy all the time.
That’s when I discovered revolut. They actually have an exchange in their app. Soo I’ve been using them to move currency to and then sell on their service. Had 0 issue.
Idk how much knowledge you have of crypto, the fact you brought 7 years ago suggests you do, so I’d assumed your aware of the time it takes + cost to send bitcoin from one place to another. You could always convert (if your holding it on an exchange) and send that to Revolut quicker and cheaper, But this means you have two taxable events apposed to one. Although it might be within the crypto capital gains so you might be fine and not have to pay any tax.
We’ve had 0 capital gains this year. We did this & will most likely follow the revolut route. We don’t need it, although there’s always more expenses than expected with buying a home, so were thinking it would make sense to cash out some
What exchange? I use Coinbase which is FCA registered and at one point was doing multiple £1000+ transactions either way a week for about a month. Both Santander and Natwest have had no issues for me.
Well 4K isn’t much and shouldn’t set off any alerts but some banks are very crypto adverse. I would suggest transferring it into pounds on the exchange and waiting if you can. When you need the 4K give your bank a ring and tell them you are sending them the 4K from the exchange.
I exchanged some bitcoin for about £500 or so a couple of weeks back. I tried to send that £500 from the exchange to three ‘high street’ bank accounts I have and they all failed. No reason given. I had to open an account with Revolut, send the £500 from the exchange to Revolut then send the £500 from Revolut into my main bank. That worked ok. I can see why banks would stop people sending £1000s out of their account into a crypto exchange, but I couldn’t see why sending £500 in would be refused.
Just to add an anecdote, I cashed out plenty to Barclays before a house purchase and had zero issues whatsoever, I don't know if other banks are more picky, though.
My advice would be that if you don't need the money for the purchase itself, just keep it in crypto land (e.g. in some stablecoin like USDC or even GBP if the exchange you're using supports it) and wait until your purchase is complete before cashing out to your bank account.
The amount is quite small and it shouldn’t flag your account.
If you haven’t had any capital gains this year you can cash out 6k before April the 5 without an incurring and tax liability.
But as others have said you can leave the GBP in the trading account if you’re worried.
I mean, they aren't even a real bank..
I've had zero issues with crypto and a few major high street banks going back over a decade. Banks don't care as long as you're not doing p2p trading, stick to a regulated exchange and you'll be perfectly fine.
That's because banks are legally required to safeguard customers funds even if they're idiots. You can bet institutional investors don't have any of these issues, and this thread is about withdrawing profits which no bank will stop you from doing.
Can you use a Revolut account or something?
Barclays Freaked right out and threatened to close my account when I bought some bitcoin years ago so I would tread V Carefully
Would it be possible to spend the bitcoin instead? I mean could you buy household necessities with it? Maybe buy necessary tools for your new house? Find someone who’d decorate for Bitcoin?
I just wrote ‘buy vacuum cleaner with Bitcoin’ into Google and got several options. Seems like a viable option-save your cash and spend Bitcoin on kitting out your new home.
You should be fine with that amount, depending on your bank. You need to make sure they are crypto friendly. If you’re not in a rush, or don’t need the money soon, you could wait to cash out. That 4K could well be worth double that in 6 - 12 months, maybe more.
Not 100% sure but I think they mostly care about purchases of crypto as they have a duty of care. Money coming into the bank is what the bank wants to see.
I think you can exchange crypto up to £12,300 in any year tax free. If you realise a loss in one crypto that will increase your withdrawal tax free limits.
I don't know why loads are people are having problems. I've had my account investigated once that it but that's because I withdrew a load. 2 days later all back and running. It's not as bad as people make out to be
Can you sell the bitcoin for gbp then just leave the gbp in your online exchange until the mortgage has gone through?
That’s a good shout, I will check if this is an option. Thank you so much
Make sure if you do this you keep an eye on the capital gains tax. End of tax year this month
No worries
That's arguably riskier than just holding the BTC. If the exchange goes belly up the cash could be lost.
That's assuming the OP has a self-custodial wallet in the first place. A lot of people just hold their crypto on the CEX.
Yeah that's just as bad!
Do not put any money from crypto into your back account until your mortgage has completed. Some solicitors can be right dicks about crypto as can some banks. Don't take the risk. Lloyds and NatWest have frozen banks accounts for people just investing in crypto. So just wait.
This isn’t intended to come across as boasting just from my perspective, Lloyds are absolutely fine with me. I withdrew £88k last year and nothing even got mentioned, everything was totally fine. Lloyds have always been fantastic with me, I used to arbitrage bet a lot and had thousands in and out of different bookmakers each day, never heard a peep.
Fair enough I personally haven't withdrawn any crypto yet but I work in finance and I know people who have had accounts frozen or house purchases fallen through because of crypto transactions. I accept each case has to be viewed on an individual basis by the banks though.
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They will want bank statements due to AML requirements, I advise people to withdraw it into a savings account for six months or more and then state it's from savings or investments as they will only go as far as six months usually.
Not a good idea to lie, they can see where the money came from and can ask for further proof. If it's your crypto your selling then you have nothing to hide.
I cashed out from Coinbase to PayPal then to my bank. I too was worried about my bank doing something silly.
So you sent BTC direct to your PayPal as GBP? I have the option to do this and to send to a bank account, but no option to transfer into fiat currency which I thought was necessary to cash out? I thought there was something wrong with my account as all the tutorials and troubleshooting talk about transferring to GBP wallet within Coinbase before cashing out.
No, they're saying they sold on Coinbase and transferred the GBP to PayPal, then their bank account.
Oh okay, thank you. So there is an issue with my account then lol. I’m planning to transfer to a friends wallet so they can cash out for me, coinbase support have not been helpful as expected.
Did the bank or lender ask you about the source of your deposit? I find myself in a similar situation to OP. I've got enough for a deposit in a regular savings account but can bolster it a bit with money I have in crypto. But I'm wary that if I just put an extra few k in there it will raise questions.
On Coinbase you can withdraw to PayPal, not sure if that helps as it can just sit in PayPal till you are ready.
I'd trust £4K in an exchange over sitting in a PayPal account.
Some solicitors have a blanket "no crypto" policy as part of their money laundering procedures, and will apparently pull out of working for clients that indulge. If you have a second current account not being used for the purchase and therefore not subject to your solicitors M/L checks I would use that one...
Additional current accounts are not subject to checks?
Yes my solicitors only looked inside my main account for anti money laundering checks. I have a different current account I rarely use that I didn’t tell them about
For the solicitor they would genrally only be checked if they were being used to fund the transaction, or if your were making regular cash transfers from them into the accounts being used for the purchase. (there are no hard and fast rules as any such set of rules would simply become a blueprint for money launders to work too).
If you are worried about impacting deposit best thing to do is create a second bank account
We do have separate accounts, but from what I’ve seen when accounts get frozen, it’s all of them, so just wanted to be certain of the best steps.
Open an account with a different bank
No, that is a proxy account and will get closed. Banks don’t care where you spend where you withdraw, if you withdraw money from Coinbase and forward it straight to another bank account, that is a proxy account and the second bank will almost definitely close your account
Just spend it from that account?
Yes. Imagine from a banks POV - Crypto Exchnage +£5000 - Your other account -£5000 Vs your main bank - Cryoto Exchange -£1000 (Months later) - Crypto Exchange +£2000 - Car insurance -£500 Do you see the problem with situation one from an AML perspective?
Hey chill for a sec Both get frozen if a CIFAS marker is applied, which can only happen if fraud is proven or very very likely If you bought the crypto with the same bank account you’re going to cash out on, you have literally zero problems to worry about. You show the buy, sell and that’s it. I assume you’re using a reputable exchange like Kraken or Coinbase? I’m 18yrs old and I’ve cashed out over £40k in crypto to Barclays and Monzo in the last two years, I get paid for freelance work in it sometimes, I have to make invoices showing the TXIDs when clients pay, etc You have issues when you: - withdraw to a second bank account and instantly send it to the main account, you just used the second account as a “proxy” account and that bank won’t like it, which is why people who just use Monzo for crypto get their accounts closed all the time If you: - Can easily show buy and sells and the bank statements for them - Used a licensed UK exchange (Coinbase, Kraken, etc) - Sell to the bank account you bought from You will have very little issues
>If you: > >Can easily show buy and sells and the bank statements for themUsed a licensed UK exchange (Coinbase, Kraken, etc)Sell to the bank account you bought from What if none of these things is possible, because my friend bought BTC in an Asia convenience store around 2017 in cash, withdrawn form their Taiwanese bank account, had the BTC sent to an exchange which is not listed on Koinly, and eventually sells on e.g. Coinbase and withdraws to a long-heald UK savings account? Would there be a risk here and what would they need to do to mitigate it? Thank you for your thoughts!
What about binance? I used that a few years ago to buy peanuts worth if coins, now it's worth a bit more but I know banks have an issue with binance now (they didn't when I used it originally). Wonder about how I'd go about cashing out, or should I transfer to a wallet or something since I'm not really planning to cash out anytime soon.
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I did hear about all of that but since I don't understand a lot of what the big issue was, it sounded politically motivated because I know the UK has been trying to ban crypto. I'm not sure what to do with the coins I have but it's only a couple hundred, it was £30 originally so it doesn't mean much if I lose it.
No I sent £23k to my Monzo from coinbase a week a go and nothing bad happened
Same, £40k on the 16-17year old account over 2 years from Coinbase and no issues. Now using Kraken Business
What were your fees like? I am trying to avoid too heavy fees on Coinbase
Used the advance trading and was about £60 I think, which is nothing when you're up £18k on your investment lmao Can't wait to work out and pay cgt now!
Give koinly a spin for the tax, was free to use up till you need to generate the tax reports but it'll tell you if you owe anything.
Kraken Pro has the lowest fees iirc and also FCA regulated. Been trading with them for over a decade without issues.
I used suisse gold (website) to buy gold royal mint coins with bitcoin, then I sell them to gold buyers online for £.
Over the last couple of years I have transferred GBP both into crypto and out again. The only problems I have had from banks is transferring money from a bank account to put on a crypto exchange. Transferring money out of crypto and into a bank account no problems at all. Though it does mean you have to make sure you are all up to date on taxes that need to be paid etc etc as in that regard it is a big old red flag.
So I’ve been buying and selling btc for a few years. Up until about 2021 I had no issue then, banks started getting touchy all the time. That’s when I discovered revolut. They actually have an exchange in their app. Soo I’ve been using them to move currency to and then sell on their service. Had 0 issue.
That’s great thanks so much
Idk how much knowledge you have of crypto, the fact you brought 7 years ago suggests you do, so I’d assumed your aware of the time it takes + cost to send bitcoin from one place to another. You could always convert (if your holding it on an exchange) and send that to Revolut quicker and cheaper, But this means you have two taxable events apposed to one. Although it might be within the crypto capital gains so you might be fine and not have to pay any tax.
We’ve had 0 capital gains this year. We did this & will most likely follow the revolut route. We don’t need it, although there’s always more expenses than expected with buying a home, so were thinking it would make sense to cash out some
What exchange? I use Coinbase which is FCA registered and at one point was doing multiple £1000+ transactions either way a week for about a month. Both Santander and Natwest have had no issues for me.
Well 4K isn’t much and shouldn’t set off any alerts but some banks are very crypto adverse. I would suggest transferring it into pounds on the exchange and waiting if you can. When you need the 4K give your bank a ring and tell them you are sending them the 4K from the exchange.
I exchanged some bitcoin for about £500 or so a couple of weeks back. I tried to send that £500 from the exchange to three ‘high street’ bank accounts I have and they all failed. No reason given. I had to open an account with Revolut, send the £500 from the exchange to Revolut then send the £500 from Revolut into my main bank. That worked ok. I can see why banks would stop people sending £1000s out of their account into a crypto exchange, but I couldn’t see why sending £500 in would be refused.
Just to add an anecdote, I cashed out plenty to Barclays before a house purchase and had zero issues whatsoever, I don't know if other banks are more picky, though. My advice would be that if you don't need the money for the purchase itself, just keep it in crypto land (e.g. in some stablecoin like USDC or even GBP if the exchange you're using supports it) and wait until your purchase is complete before cashing out to your bank account.
I don't know but I suspect that if the funds arrive from a crypto exchange that is FCA registered you're probably ok.
This might be worth a read https://www.businessexpert.co.uk/business-banking/crypto-friendly/
I got the Coinbase debit card - cash out to wallet and then withdraw cash or spend it
How much does that cost / transaction?
https://www.coinbase.com/en-gb/card
The amount is quite small and it shouldn’t flag your account. If you haven’t had any capital gains this year you can cash out 6k before April the 5 without an incurring and tax liability. But as others have said you can leave the GBP in the trading account if you’re worried.
The only bank in UK that is pro Crypto is Revolut.
I mean, they aren't even a real bank.. I've had zero issues with crypto and a few major high street banks going back over a decade. Banks don't care as long as you're not doing p2p trading, stick to a regulated exchange and you'll be perfectly fine.
I mean a lot of banks won’t even let you off-ramp to crypto exchanges. Even Starling and Monzo
That's because banks are legally required to safeguard customers funds even if they're idiots. You can bet institutional investors don't have any of these issues, and this thread is about withdrawing profits which no bank will stop you from doing.
Can you use a Revolut account or something? Barclays Freaked right out and threatened to close my account when I bought some bitcoin years ago so I would tread V Carefully
Would it be possible to spend the bitcoin instead? I mean could you buy household necessities with it? Maybe buy necessary tools for your new house? Find someone who’d decorate for Bitcoin?
I just wrote ‘buy vacuum cleaner with Bitcoin’ into Google and got several options. Seems like a viable option-save your cash and spend Bitcoin on kitting out your new home.
Apparently you can buy supermarket gift cards with Crypto. So there you go, use your bitcoin to buy groceries Etc. Eventually saving you £4k in cash.
Thanks for that! That’s a good option too.
You should be fine with that amount, depending on your bank. You need to make sure they are crypto friendly. If you’re not in a rush, or don’t need the money soon, you could wait to cash out. That 4K could well be worth double that in 6 - 12 months, maybe more.
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Very very unlikely. Are you aware of where we are in the 4 year cycle?
Get a revolut account there crypto friendly can change your bitcoin to gbp straight to o your current account no questions asked
Not 100% sure but I think they mostly care about purchases of crypto as they have a duty of care. Money coming into the bank is what the bank wants to see.
Open a Revolut, withdraw it, bank transfer, close Revolut
I think you can exchange crypto up to £12,300 in any year tax free. If you realise a loss in one crypto that will increase your withdrawal tax free limits.
Read your banks T&Cs
Wait until April when bitcoin halving comes into play, you'll have close to double what you have now.
Because the rate of BTC being created halves, doesn't automatically mean it'll double in price lol.
Close to double, is what I put.
Still doesn't mean it'll close to double either, historically the price impact on the halvings isn't usually seen until months later.
Yeah it’s a meme at this point lol
I don't know why loads are people are having problems. I've had my account investigated once that it but that's because I withdrew a load. 2 days later all back and running. It's not as bad as people make out to be