Monzo and cryptocurrency trading?


(Andre Borie) #1

I’m looking to occasionally trade some bitcoin & other cryptocurrencies and would like to know if Monzo is going to have any issues with it. I’ve heard stories about people getting their accounts closed for that at some legacy banks and would like to know what’s Monzo’s stance on this.

Thanks :+1:


Introduce yourself :wave:
(Andre Borie) #2

Any news from this? I would like an official answer please :slight_smile:


(Louis Otto) #3

Why would Monzo have any issues with what you spend your money on? Do you have any links to the issues you mentioned above?


(Andre Borie) #4

Presumably they’d be worried about money laundering given there are large sums of money transiting through the account. I’d expect it to be fine if you’re only buying coins, especially with the card, but in my case I’m using LocalBitcoins (so I’m sending money via bank transfers to sellers directly) as well as selling them and thus receiving bank transfers from other buyers.


(Louis Otto) #5

OK, first of all Barclays is awful. So of course their overzealous systems would flag things like this.

To be honest with you, as long as you report your taxes on your profits and pay them accordingly (remember that Bitcoin doesn’t classify for the capital gains bonus) then you should be fine, but I’d contact Monzo through the in-app chat as it’s between you and them.


(Hugh Wells) #6

So, we don’t have any issue with sensible, personal use of your account for Bitcoin trading. Obviously there are some platforms, like Coinbase, where 3DSecure is implemented and therefore our cards won’t currently work.
Therefore, there shouldn’t be a problem unless you’re transferring huge sums of money (where you’ll hit FPS scheme limits) :slight_smile:


(A) #7

Are you going to be implementing 3DSecure to the cards ? And I suppose the way round FPS limits would just be to use a wire transfer ? It would be very nice to know that Monzo would work with Coinbase to be honest :slight_smile:


(H Ali) #8

Barclay’s and all major bank’s are like this.

One of my friends had 3 of his account’s Blocked Barclays held money for 1 year and he had to get a lawyer etc to get it back. Barclays held £20K since Feb 17 and gave it back near Xmas. That £20K now if he had BTC is worth over £200K odd.

Anyway Monzo are happy for trading BTC and Crypto but issue is it would be good if they had a business account.


(H Ali) #9

Hi,

I have been really happy with Monzo and there support have been very quick.

May I ask a question for Monzo do you intend on offering account for Businesses as we ideally want to expand but can’t due to the main issue of not having a Business Account.


(Gareth) #10

(H Ali) #11

Ah that’s not good news would have thought this would be something in the Pipeline :frowning:


#12

I’ve checked a few threads and not able to find a response on this topic.

@Monzo - Will you have any issues receiving funds from a crypo exchange?

Thanks


(Louis Otto) #13

As long as you don’t go over your receivable limits, you should be fine. Monzo aren’t going to baby you, but will advise that you definitely need to pay tax on profits etc.

Remember, for personal cases your best bet is to use the in-app chat to speak to an advisor.


#14

You would need to pay CGT on your crypto profits and even if you have full time employment if it is defacto a part time additional job HMRC will also expect income tax paid on it and have it declared on your annual self assessment tax return.


( related to Monzo CEO, Investor in Monzo ) #15

I think they would probably look at the frequency of trading as being classed as a part time job ??? totally agree with CGT I buy and sell shares infrequently and have classed the profit as CGT on sale of shares , if I was trading shares daily or weekly I could see it being classed as income - not sure Ive seen any definition of what would constitute enough trades to be classed as a job ?


#16

unfortunately it is vague and basically if they say it is then it is LOL that seems to be how it works. Also it can depend on what HMRC employee looks at it.

HMRC rules give them so much power. When it comes to paying tax on postal packages from outside the EU it is supposed to be levied on the value of the contents but even if you pay $X and have an invoice and receipt to that effect, the regulations allow them to disregard that and levy tax on a perceived value i.e. what an HMRC employee thinks it is worth.


(Louis Otto) #17

Sorry your statement of importing goods from outside the EU just isn’t true. It is always based on the value of the sale, the only time it isn’t is if there wasn’t a sale (ie, you inherited something and had it sent over). The fees are always Price paid inc delivery + levies fee + VAT.

If they use a higher rate than you paid for the items, you can and should complain because they have no basis to work any other way than stated on their website.

Let’s not get derailed from the subject topic here though, this is about cryptocurrency trading, not goods import.


#18

that was what they told me, and charged me more as they said the invoice did not reflect the true value of the item! anyhow, like you said let’s not get off topic, so I won’t discuss it further


#19

@Monzo - Will you have any issues receiving funds from a crypo exchange?

No, not really, as Hugh mentioned it’s generally not different to any other form of income.

@reko91 The scheme limit for inbound FPS transactions is £250,000. Whilst you could technically use a different transfer method, FSCS protection is generally up to £85,000 in most cases, https://protected.fscs.org.uk/About-FSCS/ . You are free to move more than this into your Monzo account, but you should take the time to understand whether it will be protected and factor that into your decision making.