I want to start buying bitcoin but I keep hearing that banks are shutting people’s accounts down for this. I want to buy from Coinbase which is a massive company where I had to prove my identification to get an account. Am I allowed to do this on my Monzo account? I heard one person got their account frozen just for attempting to send £75 to coinbase but I am not sure why this is an issue?
Thanks
Yes. Most people that have their accounts closed are also doing shady crypto stuff. Just using Coinbase is fine. I’ve done it without fuss several times now.
You should really ask Monzo on chat for an official response.
I believe Coinbase is very reputable as you have to prove your ID to use it but I’m still unsure. I have asked via Monzo chat
Thanks, I didn’t know this existed! I have asked them now
Using Coinbase is fine. I imagine Monzo will distance themselves from accounts doing large volumes of these transactions coupled with other things that prove it difficult to ensure regulatory and AML checks are being observed.
Coinbase uses Barclays to hold its UK funds so I can’t see it being an issue. I have both my Monzo card and account linked in Coinbase and have topped up as well as withdrawn small amounts from it to Monzo and vice versa.
Using Monzo solely for Crypto trading large amounts of money could possibly trigger KYC and Anti-fraud checks though. I’ve just done small amounts here and there and have been fine.
I believe that Barclays are cutting ties with coinbase (only happened in last few days). I think it’s to do with Brexit. If they froze my Monzo account would my other bank accounts get frozen? Just a bit worried about this. Still waiting for a reply from Monzo chat
You are correct, they have a relationship with ClearBank now hence the current transfering money disruption. I haven’t been following it much recently to be fair.
I use Monzo as my main account and I’ve not had issues with small amounts to and from Coinbase. If Monzo did freeze your account for an investigation, it shouldn’t affect other bank accounts you have unless you are committing fraud and the banks are subsequently asked to.
I can’t offer any guarantees in the end, but all I can say is I’ve had no issues. Also remember that Coinbase does hold a UK e-money licence from the government’s Financial Conduct Authority.
Thanks Chapuys, that makes me feel better. I will post monzos official reply when I get it!
I had a reply from Monzo. They stated they would not shut my account down for making payments to Coinbase, so it’s all good!
Remember to use coinbase Pro to avoid fees!
This is a good summary
There’s also a helpful calculator to show potential fees on Coinbase in that blog
Do not use monzo with coin base. Your monzo account will be frozen along with any money in it
Yes you can use Monzo and Coinbase without your account being blocked.
I use Monzo and Coinbase. I posted pictures above as evidence. @C5678 has had confirmation from Monzo stating that they have no issue with Coinbase.
Obviously, if you just use Monzo to move money from Crypto, or move large amounts of money through it, Monzo may investigate but I am fully Monzo and have no issues moving small amounts to and from Coinbase.
You are fine until they close your account. Just because it hasn’t happened to you yet, doesn’t mean it doesn’t happen. I’ve never seen a virus, they still exist.
I’ve been using Monzo with Coinbase for two years.
I feel like it would be beneficial for you to read this:
If the account is frozen in error you will get your money back.
Monzo will not close my account because they have no issues with Coinbase and I use my account correctly. As @tomsr states, I have used Monzo and Coinbase for a long time too.
Monzo specifically tested Monzo and Coinbase transactions.
I have made some payments to coinbase and all good so far!