Many banks across the world are anti-crypto. They block cryptocurrency purchases with your credit card, stop you spending your own money on Bitcoin, and bad-mouth digital money in the media.
In their defence, banks and other financial institutions are often trying to protect your money or follow local financial regulations.
Here’s what you can do if your bank has blocked your crypto purchase, along with some tips on how to buy your cryptocurrency in other ways.
1. Is it a Security Feature?
Often when a bank blocks a purchase, it is a security feature designed to protect you. The banks will typically inform you via email or SMS notification.
From the bank’s perspective, if you normally make small purchases in the local corner shop and then a $2,000 transaction arrives out of the blue, it looks suspicious.
Couple that with a cryptocurrency provider, which banks are already wary of, and it’s a bad combination.
By calling your bank, choosing an option on your internet banking service, or replying to an SMS message (dependant on your bank), it’s often possible to get the bank’s crypto block lifted. Once lifted, it’s a simple process of repeating the transaction.
2. Don’t Use Your Overdraft
Make sure you have enough money in your account to fund the transaction; try to avoid using your overdraft to buy crypto.
Remember, the overdraft is your bank’s money—they have much more say over what you can and cannot use it for.
3. Use Cash at a Bitcoin ATM
A Bitcoin ATM is a kiosk that accepts cash in exchange for Bitcoin or other cryptocurrencies. They often charge a large premium for doing so, but they let you buy cryptocurrencies for cash with few questions asked.
Sometimes Bitcoin ATMs need you to create an account with an exchange and complete KYC verification, but there are plenty of ATMs that don’t need this, if you want to remain anonymous. There’s probably a Bitcoin ATM near you.
4. Use a Cryptocurrency Broker
Cryptocurrency brokers are a good way to buy cryptocurrencies if the bank restricts your purchases.
Peer-to-peer cryptocurrency websites such as Local Bitcoins are very popular. These services connect you to other people who wish to sell Bitcoin. Similar websites exist for other cryptocurrencies.
You can arrange trades in-person with cash, bank transfers, or any other means of payment. And any online transfers using the systems use a randomly generated code, so the bank will never see any cryptocurrency-related words on your statements.
If you would like to buy a large volume of cryptocurrency, and your bank still won’t comply, then OTC trading is the next logical step. These trade counters enable huge trades of cryptocurrency, often with contracts and Escrow accounts. Few banks will reject payments to a law firm or legal entity.
5. Use a Cryptocurrency-Friendly Bank Account
If you trade a lot of cryptocurrencies, you may wish to consider a crypto-friendly bank account. These new businesses are springing up all over the place, looking to usurp the entrenched financial institutions plaguing the land.
Companies such as Bitwala and Cashaa offer modern bank accounts with a twist—they are designed around cryptocurrency wallets, and enable the buying and selling of Bitcoin (and a limited selection of other cryptocurrencies) straight from your
While changing bank accounts is a big step, it could be worth it if you want to trade cryptocurrencies frequently.
How Do You Buy Your Cryptocurrency?
These five techniques should help to get around your bank’s crypto blocks.
While some banks are famously anti-crypto (looking at you Jamie Dimon, CEO of JPMorgan Chase), many are trying to look after their customers and their customer funds, and prevent an excessive support workload.
Can you imagine the volume of calls if banks let any and all cryptocurrency purchases through, even potentially fraudulent ones? It’s a delicate balance to maintain, and while it may be a little inconvenient for you or me at times, surely that’s better than the alternative?
If you still can’t or won’t forgive your bank, and none of the tricks listed here have helped, then you may need to take drastic measures.
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