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Avoiding problems with the bank: How to withdraw crypto to a European account without being blocked

Published
April 29, 2024
Updated
April 29, 2024
< 3 min read

Intro

In recent years, we have seen a significant increase in interest in cryptocurrencies in Europe. However, this growth has also led to an increase in the number of cases of banks blocking cryptocurrency transactions. These blocks often occur due to strict AML (Anti-Money Laundering) and KYC (Know Your Customer), which banks are required to comply with. The first step in this regulation was taken in 2018 when the European Union adopted the Fifth Anti-Money Laundering Directive (AML5), which included cryptocurrency exchanges and wallets for the first time. This means that all transactions must be completely transparent to regulators.

Statistics and overview

According to the report CipherTrace Over the past year, around 74% of European banks have been forced to tighten their anti-money laundering procedures due to cryptocurrencies. More than 60% of transaction blocks are due to non-compliance of client transactions with AML requirements.

Real case:

In 2020, one of the largest banks in Germany, Commerzbank, blocked a transaction worth €500,000 from a well-known crypto exchange. The reason was the lack of detailed information about the origin of the funds. After lengthy negotiations and provision of additional documentation, the bank lifted the block, but this case dragged on for several months.

In 2021, a number of European banks tightened control over transactions with cryptocurrencies, which again led to massive blocking of transactions.

Another specific example is the French bank Société Générale, which processes cryptocurrency transactions only if they go through verified exchangers that are fully AML5 compliant. A user wishing to withdraw funds to his Société Générale account must provide a full audit of the origin of the funds, including documents from the exchanger and confirmation of the legality of the funds.

How to interact with banks?

If you regularly need to withdraw cryptocurrencies to a bank account in Europe, then the key to successful interaction with banks is openness and compliance with their KYC and AML requirements. There are plenty of ways to sell crypto and get money into a bank account or card. But before you get started, you should make sure that your cryptocurrency platform also meets these standards.

Transaction monitoring

Regular monitoring of your transactions will help prevent unexpected questions from the bank. If the bank sees that you regularly receive income from cryptocurrencies and can explain the origin of the funds, this reduces the risk of blocking the account.

What to do in case of problems?

If your bank account is still blocked, the first thing you should do is contact the bank to find out why. In most cases, the problem is resolved by providing additional documents about the origin of the funds and patience on your part.

To minimize such problems there are several recommendations:

  1. Choose for cooperation only licensed and proven crypto platforms, we will analyze them in more detail below.
  2. Prepare and systematize all documents related to crypto transactions in advance.
  3. When you contact the bank, make sure that your request is processed correctly. The human factor has not been canceled and sometimes it may be necessary to remind you of your request or even contact a higher level of management to speed up the process.
  4. If the blocking of your account is not lifted and you feel that your rights are being violated, you should seek legal help.
  5. Plan B: In case of long-term blocking or problems with the bank, an alternative plan for your finances will help. This may include opening an account with a different bank or using other financial instruments such as digital wallets or other platforms to store and transact your funds.

How to withdraw crypto to a European account without being blocked?

To regularly sell, exchange and withdraw cryptocurrency to bank accounts without the risk of blocking, you need to use only licensed and verified crypto platforms. Let's take an example: Swaps , a platform provides a solution - a payment gateway that allows you to sell crypto and receive EUR, GBP, etc. to a bank account in Europe or the UK and avoid such problems. This is a fully regulated and licensed European company where users can be confident in the legality and security of their transactions.

How does this happen from the technical side?

One of the key features of Swaps is the creation of individual virtual IBANs for each user and client. That is, all transactions are carried out directly from the bank account of a European company, thereby minimizing suspicion on the part of banks. This approach not only simplifies the process of verifying the origin of funds, but also significantly reduces the risk of blocking.

Specific example

Consider the case of a user from Germany who used Swaps to sell a large amount of Bitcoin. After the sale, the funds were transferred to the user's virtual IBAN account in Swaps, and then credited to his personal account at Deutsche Bank without any problems. The transaction went through quickly and without any questions from the bank, since all the necessary checks were performed on the Swaps side.

How to sell and withdraw crypto in Swaps?

You can sell Bitcoin, Ethereum, BNB, SOL, XRP, ADA and other tokens safely and with low fees. You can also withdraw large amounts of up to EUR 100,000 and more. You can use SEPA transfer and sell crypto with a commission of only 1%.

Conclusion

Using the recommendations discussed in this article and services such as Swaps, you can minimize the risks when cashing out cryptocurrencies through European banks, maintaining good relations with them, avoiding unnecessary delays and checks, and ensuring the smooth running of your personal and business transactions.

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This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of Swaps, and Swaps is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. Swaps is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by Swaps of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of Swaps.

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