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If you want to start trading crypto, you need to set up a separate bank account for this before you start and go through the compliance process with the bank in
by Alex3917 9y ago
If you want to start trading crypto, you need to set up a separate bank account for this before you start and go through the compliance process with the bank in advance. This can take several weeks, but if you don't go through the process before you start accumulating significant amounts of crypto then you'll never be allowed to cash out. (And also there are only a handful of banks that will allow you do this, you can't just make a new account at Chase or Wells Fargo or whatever.)
This is why almost all of the big ICOs still have the 'money' they've raised in crypto, because they didn't do KYC/AML and so they aren't allowed to sell their crypto and put the cash in a bank account. The only thing they can do is pay their employees in crypto, at which point it's the employees problem of how to cash out.
- psyc 9y agoCan you explain the “never” in this assertion? Never is a strong word.
- Alex3917 9y agoIt's illegal for banks to accept deposits of money without knowing how the person depositing the money got it. And this isn't just in the US, it's in every country worldwide. This means that if you're buying crypto assets behind just a couple hundred bucks to mess around with, you're going to want to work with a compliance officer, where every time you buy something you send them an email explaining exactly what you bought and how much you paid for it. Basically if you put a hundred bucks in Coinbase and you end up with a few thousand bucks then you're not going to run into any issues. But if try to drop $20M into a bank account they're going to tell you to get fucked.