Cryptocurrency, Coinbase, UK bank accounts, HMRC, Identity, Birth Certificates & Blaming My Parents!

HighContrast

So I've been looking into trading cryptocurrency for a while now, I've set up my exodus wallet, and also set up an account on Coinbase.

When I went to add/link a bank account to Coinbase it originally I put in my details for my regular current account (Barclays) i.e. sort code and account number, then it asked me to send deposit £2 as a test transaction from my Barclays account to Coinbase, however I held back completing that step at the time, I'm not entirely sure why.

However, since attempting this again, when i go to do it, the "deposit £2" step no longer works, it's just an empty dialog box. Now, i think this may have to with the fact that my name on my driving licence, which was the ID i submitted to Coinbase, is not an exact match for my name on my Barclays current account (why coinbase allowed me to do the test deposit initially i don't know).

Anyway, without revealing my true identity, I use and have always used a shortened version of my birth certificate first name, so an example would be Jon instead of Jonathan, (although mine's a bit more embarrassing!), and so all my bank accounts are under Jon, whereas my birth certificate, driving licence and passport all refer to Jonathan.

Now I've since been told never to use your main working current account with any Crypto exchanges anyway, as there is a chance your bank account may be blocked, (which is the last thing you want on a day-to-day bank account) so I'm looking into setting up an account just to for the purposes of transferring money to and from Coinbase anyway.   

So my question is  there any legal/tax repercussions if I suddenly start creating a new bank account with my full first name? Secondly what banks do you reccomend? I've heard many high street banks in particular are very touchy RE crypto although a friend seems to be using HSBC ok. I've heard challenger banks like revolut are "OK" as they are more geared towards the new world of crypto anyway?

P.s. Happy to try kraken as an exchange too.

colsten

HighContrast said:

 I've heard challenger banks like revolut are "OK" 

I cannot answer your questions but just to say, Revolut are at present not a bank in the UK. I understand they have applied for a UK banking licence but it has as yet not been granted.

Thrugelmir

HighContrast said:

When I went to add/link a bank account to Coinbase it originally I put in my details for my regular current account (Barclays) i.e. sort code and account number, then it asked me to send deposit £2 as a test transaction from my Barclays account to Coinbase, however I held back completing that step at the time, I'm not entirely sure why.

However, since attempting this again, when i go to do it, the "deposit £2" step no longer works, it's just an empty dialog box. Now, i think this may have to with the fact that my name on my driving licence, which was the ID i submitted to Coinbase, is not an exact match for my name on my Barclays current account (why coinbase allowed me to do the test deposit initially i don't know).

I'd suggest asking Coinbase. As you aborted part way through the process. Perhaps you are only allowed one bite of the cherry then the system locks. 

masonic

Due to the regulatory environment (presumably relating to fraudulent transactions) Coinbase don't accept bank transfers from UK accounts. Any £2 payments sent will bounce back and you'll get notified a few days later of the situation.

Scottex99

I've been paying GBP out of a Bank of Scotland account to about 5 crypto exchanges for around 3 years.
No issues, although I don't send large amounts and I've never sent GBP back in.
It's your money at the end of the day, as long as you're not blasting through 5/6 figures on a regular basis, i'd assume it would be fine. I've used my Revolut for it too but they can be a massive pain if compliance questions come in.

Adyinvestment

eToro is in the process of adding it's own money account, which to all purposes seems to be the same as a bank account with Visa debit card, bank transfers, direct debits, pay your salary in etc - you will be able to instantly transfer funds in free of exchange fees from your eToro Crypto/investment account and Visa Versa.

Chino

Adyinvestment said:

which to all purposes seems to be the same as a bank account

Well that's me reassured.

IvanOpinion

Sounds a bit like
https://www.youtube.com/watch?v=WOHPuY88Ry4

TimSynths

masonic said:

Due to the regulatory environment (presumably relating to fraudulent transactions) Coinbase don't accept bank transfers from UK accounts. Any £2 payments sent will bounce back and you'll get notified a few days later of the situation.

I've sent Coinbase £1000's this year form my Lloyds account with no issues. Only bank i've heard that gets stroppy with Crypto is HSBC these days.

whatstheplan

Scottex99 said:

I've been paying GBP out of a Bank of Scotland account to about 5 crypto exchanges for around 3 years.
No issues, although I don't send large amounts and I've never sent GBP back in.
It's your money at the end of the day, as long as you're not blasting through 5/6 figures on a regular basis, i'd assume it would be fine. I've used my Revolut for it too but they can be a massive pain if compliance questions come in.

This is interesting as I'm with HBOS and would like to dabble in crypto, however it's the 'account freezing' thing that's putting me off, and any possible adverse effect that could have on my credit rating, perhaps an unfounded concern.

I wonder if banks ever freeze all accounts when they discover a customer is trading crypto i.e. not just the account the transfers are going from / coming into?  I have a main account with all my DDs etc and a second account I transfer £x into each month for day to day transactions.  It's that second account I'd use for crypto, so even if the bank locked that account, my main account would hopefully remain active?

I maybe seem over cautious, however after decades of being a sensible customer in the eyes of my bank, with good  credit history etc, I'd hate to jeopardise any of that.

Maybe, as crypto appears to be gaining traction in the wider (and corporate) world, banks are starting to become less concerned around customer crypto activity? 

masonic

TimSynths said:

masonic said:

Due to the regulatory environment (presumably relating to fraudulent transactions) Coinbase don't accept bank transfers from UK accounts. Any £2 payments sent will bounce back and you'll get notified a few days later of the situation.

I've sent Coinbase £1000's this year form my Lloyds account with no issues. Only bank i've heard that gets stroppy with Crypto is HSBC these days.

It's Coinbase that has made the decision, not the banks. UK customers can no longer link their bank accounts, they can still use debit cards and paypal. Legacy customers may not be affected. I have a message from Coinbase stating that due to my location they cannot offer this service. I presume it's related to the new rules around refunding victims of fraud and they just consider setting up linked bank accounts for new customers too risky.

They did state this policy was being kept under review and they'd notify affected customers if it changes.