Hello a few questions about my Monzo account. Just want to clear a few things up before i get in trouble!
Bitcoin investment. Is this allowed? Some banks get funny so thought i’d ask first!
My friend plans on sending me a large sum of money for the sale of a car. Is this going to be an issue? Do i have to let Monzo know i’m going to be receiving a large sum? I don’t want it flagging up if a random large sum comes into my account despite the fact I know about it!
Its all relative to the amounts involved I suppose , if you’re planning on trading bitcoin on a daily basis I would think it would become a problem for Monzo , a one off occasional buy or sell shouldn’t present a problem . Again transferring large sums of money occasionally shouldn’t be a problem unless it becomes a daily weekly transfer of thousands from known “friends”
You have to look at it sensibly from the Banks legal commitments to prevent potential money laundering - if you think it might trigger these queries because of the sums involved - and if you cant justify your funding Monzo WILL freeze your account - they are obliged to
Can Monzo stop you spending your money on anything legal?
Quick search shows that some Banks have blocked their credit cards from buying bitcoin , that’s probably legal because it’s their money not yours.
About the money for the car , I doubt it would be a problem, but if it does flag then shouldn’t be too hard to get it unfrozen.
When you give money to a bank for safe keeping, it becomes their money in a legal sense, and it also becomes a liability/debt to you they have on their accounts.
Due to their responsibility to keep their (“your”) money safe, they can stop you spending “your money”, because it isn’t really yours. This system works as long as there is trust in the banking system, and any bank that started behaving unreasonably would soon lose customers. Therefore it is about balance.
Looking at it another way, your bank balance doesn’t show how much money you have in the bank, it shows the bank’s record of how much money it owes you.