Middle man bank for crypto exchanges
Discussion
Evening all
I would like to dabble in crypto, small amount of money i.e less then £500.
I have heard the main banks look down on transfers to crypto exchanges like coinbase and this could affect future mortgage applications. I have read that middle man banks such as revoult, sterling or monza is a good place to transfer money to from your main bank then use this "middle man bank" to transfer to the exchange. I only have one bank accont at the moment with a high street bank.
I was wondering if anyone else uses this method to transfer to exchanges or do most of you just transfer from your main bank?
Thanks
I would like to dabble in crypto, small amount of money i.e less then £500.
I have heard the main banks look down on transfers to crypto exchanges like coinbase and this could affect future mortgage applications. I have read that middle man banks such as revoult, sterling or monza is a good place to transfer money to from your main bank then use this "middle man bank" to transfer to the exchange. I only have one bank accont at the moment with a high street bank.
I was wondering if anyone else uses this method to transfer to exchanges or do most of you just transfer from your main bank?
Thanks
marked1 said:
Evening all
I would like to dabble in crypto, small amount of money i.e less then £500.
I have heard the main banks look down on transfers to crypto exchanges like coinbase and this could affect future mortgage applications. I have read that middle man banks such as revoult, sterling or monza is a good place to transfer money to from your main bank then use this "middle man bank" to transfer to the exchange. I only have one bank accont at the moment with a high street bank.
I was wondering if anyone else uses this method to transfer to exchanges or do most of you just transfer from your main bank?
Thanks
I know very little (read that as Jack sI would like to dabble in crypto, small amount of money i.e less then £500.
I have heard the main banks look down on transfers to crypto exchanges like coinbase and this could affect future mortgage applications. I have read that middle man banks such as revoult, sterling or monza is a good place to transfer money to from your main bank then use this "middle man bank" to transfer to the exchange. I only have one bank accont at the moment with a high street bank.
I was wondering if anyone else uses this method to transfer to exchanges or do most of you just transfer from your main bank?
Thanks
t) about Crypto, but i have a Revolut Metal account that I've now started using for more interesting activities, so have also dabbled (that's £150 so far) in Crypto as the fees are minimal & it's just easy for simpler folk like me.Might even try Stocks & Commodities for a bit of fun, but to answer your question as best i can, using Revolut at least, it's all very simple
mwstewart said:
What is your source for the mortgage application aspect?
Wouldn't be a huge stretch - try applying for a mortgage with gambling site debits on your statement. It depends where you position crypto in the gambling/investment spectrum.....Best bet would be to do that sort of thing from a second account of some sort just to keep things clean & simple.
Carbon Sasquatch said:
Wouldn't be a huge stretch - try applying for a mortgage with gambling site debits on your statement. It depends where you position crypto in the gambling/investment spectrum.....
Best bet would be to do that sort of thing from a second account of some sort just to keep things clean & simple.
I ask because I opened two new mortgages this year: one residential and one BTL. There was a fairly significant amount of crypto transfers in the statements of the accounts that I used, and not a mention. I'd like to think that the position hasn't changed. Assuming that the investments vs income are sensible then I can't see the problem...but then I'm not a bank.Best bet would be to do that sort of thing from a second account of some sort just to keep things clean & simple.
mwstewart said:
I ask because I opened two new mortgages this year: one residential and one BTL. There was a fairly significant amount of crypto transfers in the statements of the accounts that I used, and not a mention. I'd like to think that the position hasn't changed. Assuming that the investments vs income are sensible then I can't see the problem...but then I'm not a bank.
Agree - shouldn't matter, but you just never know. If you can avoid advertising it then it just makes life easier.ttwest have stopped allowing card payments to Binance, so I route payments through my TransferWise euro account. It goes GBP -> EUR -> ETH -> Various stcoins.
I understand the FCAs main beef with Binance is due to Binances lax approach to leveraged products, they aren't following margin limits etc.
twest have stopped allowing card payments to Binance, so I route payments through my TransferWise euro account. It goes GBP -> EUR -> ETH -> Various stcoins. I understand the FCAs main beef with Binance is due to Binances lax approach to leveraged products, they aren't following margin limits etc.
Both Monzo and Revolut are good options when it comes to moving money between crypto exchanges and legacy banks. I personally use both for deposits and Monzo for withdrawals.
Be prepared to have your crypto exchange withdrawals queried by either bank still, but at least they won't block you from doing it. Typically having a clear transaction history on crypto exchange as proof should be enough, unless you're dealing with very large amounts of money at a time.
You can also use something like Monolith[dot]xyz or crypto[dot]com if you want to go straight from crypto into a visa/mastercard debit card for purchases. Be aware that converting crypto to cash at any point is a taxable event. Seek professional advise for that.
Be prepared to have your crypto exchange withdrawals queried by either bank still, but at least they won't block you from doing it. Typically having a clear transaction history on crypto exchange as proof should be enough, unless you're dealing with very large amounts of money at a time.
You can also use something like Monolith[dot]xyz or crypto[dot]com if you want to go straight from crypto into a visa/mastercard debit card for purchases. Be aware that converting crypto to cash at any point is a taxable event. Seek professional advise for that.
RichTT said:
I'd be interested to know what sway they have with getting transaction details from the exchanges not listed or approved in the UK. Or DEX's for that matter.
HMRC or banks? I suspect that it's on us to provide sufficient evidence to prove that source of income. For banks it's just to cover their backsides as they are obligated to ensure funds are not coming from illegal sources... HMRC will treat any assets as having zero cost basis if you can't demonstrate the actual costs basis with relevant records,leshkin said:
HMRC or banks? I suspect that it's on us to provide sufficient evidence to prove that source of income. For banks it's just to cover their backsides as they are obligated to ensure funds are not coming from illegal sources... HMRC will treat any assets as having zero cost basis if you can't demonstrate the actual costs basis with relevant records,
HMRC extracting information from exchanges. Say for example I'm trading on a DeX, or on an exchange not registered in the UK. I make profits and transfer it to a Fintech that has an issued payments card (mastercard / visa etc) and then I spend using that card. At what point would HMRC even find out? It doesn't touch a high street bank between point of profit and point of purchase.
RichTT said:
HMRC extracting information from exchanges.
Say for example I'm trading on a DeX, or on an exchange not registered in the UK. I make profits and transfer it to a Fintech that has an issued payments card (mastercard / visa etc) and then I spend using that card. At what point would HMRC even find out? It doesn't touch a high street bank between point of profit and point of purchase.
With all this stuff being on blockchain, tx on chain are easy to track especially on DEXs. What HMRC will likely do, if you get audited, is ask you to show proof of what happened to those fund once they went dark... Ultimately, it's on the tax payer to demonstrate correct record-keeping and fines for not doing this can be high.Say for example I'm trading on a DeX, or on an exchange not registered in the UK. I make profits and transfer it to a Fintech that has an issued payments card (mastercard / visa etc) and then I spend using that card. At what point would HMRC even find out? It doesn't touch a high street bank between point of profit and point of purchase.
The other thing you have to consider is that for a visa/mc to issue you with a debit card, you will most likely have to go through KYC, which means that your foreign entity could still be persuaded by the relevant tax authority to cooperate and hand over their records on you... The moral of the story here is to know when and how you will be liable for tax and pay what you owe, or take the risk and pay the price later.
I tend to closely monitor all my taxable events using a crypto tax service and make sure that I declare everything, even if I don't think that HMRC can get to some of those disposals right now. Once you know what and when will likely result in more tax exposure, you can be smarter about minimising your tax liabilities in the future and be a bit more tax efficient and be better prepared for when tax is due.
leshkin said:
With all this stuff being on blockchain, tx on chain are easy to track especially on DEXs. What HMRC will likely do, if you get audited, is ask you to show proof of what happened to those fund once they went dark... Ultimately, it's on the tax payer to demonstrate correct record-keeping and fines for not doing this can be high.
The other thing you have to consider is that for a visa/mc to issue you with a debit card, you will most likely have to go through KYC, which means that your foreign entity could still be persuaded by the relevant tax authority to cooperate and hand over their records on you... The moral of the story here is to know when and how you will be liable for tax and pay what you owe, or take the risk and pay the price later.
I tend to closely monitor all my taxable events using a crypto tax service and make sure that I declare everything, even if I don't think that HMRC can get to some of those disposals right now. Once you know what and when will likely result in more tax exposure, you can be smarter about minimising your tax liabilities in the future and be a bit more tax efficient and be better prepared for when tax is due.
Oh I track it all very carefully as well. Especially as this year I'll probably be breaching CGT threshold on trades. Thankfully due to work I have PwC who submit a self assessment on my behalf and it should be as simple as totting it all up and entering a single figure in the submission form. The other thing you have to consider is that for a visa/mc to issue you with a debit card, you will most likely have to go through KYC, which means that your foreign entity could still be persuaded by the relevant tax authority to cooperate and hand over their records on you... The moral of the story here is to know when and how you will be liable for tax and pay what you owe, or take the risk and pay the price later.
I tend to closely monitor all my taxable events using a crypto tax service and make sure that I declare everything, even if I don't think that HMRC can get to some of those disposals right now. Once you know what and when will likely result in more tax exposure, you can be smarter about minimising your tax liabilities in the future and be a bit more tax efficient and be better prepared for when tax is due.
I guess you're right on the MC/Visa situation. I wonder if the same applies to lightning network transactions.
Gassing Station | Finance | Top of Page | What's New | My Stuff