Crypto Transactions Made Easy: Which Banks Support Cryptocurrency Purchases? 

Determining which banks permit cryptocurrency purchases is more complex than it may seem. Even many of the large “crypto-friendly” banks that target the crypto sector may not be the most suitable for facilitating regular crypto transactions for individuals.

In summary, opening an account that enables cryptocurrency purchases (or direct fiat transfers to a crypto exchange) is generally easier than opening an account without proper verification or a UK bank account without proof of address, but it can still pose challenges if you are unaware of which banks or platforms to consider.

In this article, we will explore different categories of banks that support cryptocurrency transactions, identify countries that are more supportive of crypto, and discuss the reasons why opening accounts can be difficult.

Categories of Banks That Allow Cryptocurrency Purchases

When selecting a bank that accommodates cryptocurrency purchases, you can consider the following categories:

1. Banks That Embrace Cryptocurrency

Traditional brick-and-mortar banks typically manage cryptocurrencies in one of two ways:

• ·Complete Ban: Some banks impose a total ban on cryptocurrencies, crypto-related transactions, and customers with crypto-sourced wealth. Such banks are unsuitable for anyone involved in the crypto industry. Often, even if a crypto-engaged customer manages to open an account, the bank may close it upon discovering the connection to crypto.

• Turning a Blind Eye: Some larger banks in established markets like the US, EU, and UK may ignore crypto-related transactions. However, this approach is not advisable since sending and receiving cryptocurrency-related funds can still violate these banks' policies.

Given these considerations, if you're interested in purchasing cryptocurrencies or conducting crypto-related transactions, it's recommended to explore the following alternatives.

2. Trading Platforms with Banking Licenses

A popular option for buying cryptocurrencies through a bank is to use large trading platforms.

• Many of these international trading platforms possess banking licenses, allowing you to hold deposits similarly to a traditional bank.
• In many instances, these platforms are even covered by the same deposit insurance schemes as local banks, depending on their licensing and operational jurisdiction.
• They typically offer a broad range of cryptocurrencies, from 10 to 35 different options, including major ones like Bitcoin and Ethereum.

3. Cryptocurrency Exchanges

While not classified as banks, cryptocurrency exchanges are another popular avenue for purchasing cryptocurrencies.

• These platforms focus solely on facilitating the buying, selling, and trading of various cryptocurrencies.
• They often provide tools and resources that can enhance your trading experience, though it's essential to ensure that you choose a reputable exchange.

In conclusion, while navigating the banking landscape for cryptocurrency purchases can be challenging, understanding the different categories of banks and platforms available can help you make informed decisions.