Updated
GL-C-05
Glossary · Banks and finance
Crypto-friendly bank
A bank that works comfortably with clients whose money is tied to cryptocurrency. There are few of them: most avoid crypto because of compliance.
01 / In 30 seconds
The short answer
- What it is
- A bank that works calmly with clients whose money is linked to cryptocurrency
- Why it is rare
- Most banks avoid crypto because of compliance
- What is checked
- The origin of crypto funds, particularly thoroughly
- What is required
- Choosing the bank and a file on the crypto transactions
- Can you prepare
- Yes: assemble the chain of crypto transactions and choose a bank
02 / In plain words
What Crypto-friendly bank means
A crypto-friendly bank is a bank willing to work with clients whose funds are linked to cryptocurrency: to accept money from the sale of crypto, serve crypto entrepreneurs and take in fiat from exchanges. The key word is “willing”: most banks avoid crypto because of compliance.
The reason is simple: crypto money is harder to trace, and under AML rules the bank must prove it is not linked to crime or sanctions. For many banks it is easier to refuse such a client than to build the checks (a form of de-risking). Crypto-friendly banks, by contrast, have built processes for such transactions — but they too check the origin of crypto particularly thoroughly.
The conclusion for a client with crypto wealth: it is important both to choose the right bank and to assemble a transparent transaction history. You will need the chain: where the crypto was bought, which exchanges it passed through, how it was converted to fiat — with statements and confirmations. Then even an “awkward” crypto profile passes compliance.
A case from practice
A client cashes out the profit from selling cryptocurrency and is refused by an ordinary bank — it does not accept crypto. With a crypto-friendly bank and an assembled chain of transactions (purchase, exchanges, conversion to fiat, statements), the account is opened and the money passes compliance.
Who needs such a bank
- Holders of crypto wealth
- Crypto entrepreneurs
- Those converting crypto to fiat
- Investments with money of crypto origin
- Businesses accepting cryptocurrency
- Diversifying between crypto and fiat
03 / What it covers
What matters with a crypto bank
What it does
- Accepts crypto money
- Takes in fiat from exchanges
- Serves crypto businesses
Why it is rare
- Crypto is hard to trace
- Strict compliance
- A form of de-risking
What is checked
- The origin of the crypto
- The chain through exchanges
- Sanctions and analytics
What is required
- Choosing the bank
- Transaction history
- Statements and confirmations
04 / How it works
How to open an account with crypto money
Choosing a crypto-friendly bank
Assembling the history of crypto transactions
Evidencing the origin
Compliance check
Account opened
05 / Key facts
What you need to know
01
Most banks avoid crypto because of compliance
02
There are few crypto-friendly banks
03
The origin of crypto is checked particularly thoroughly
04
A transparent chain of transactions down to fiat is needed
05
Refusal because of a crypto profile is a form of de-risking
Common mistakes
- Going to an ordinary bank with crypto money
- Not assembling the transaction history and statements
- Not showing where the crypto was bought and how it was converted
- Bringing in funds from non-transparent wallets
- Concealing the crypto origin of the money
06 / Expert advice
How to prepare in advance
With crypto wealth it is important both to choose the right bank and to assemble a transparent history: where the crypto was bought, which exchanges it passed through and how it was converted to fiat — with statements and confirmations. It is better to route funds through traceable exchanges than anonymous wallets. Then even an “awkward” profile passes compliance.
What we do for you. BRIDGES GLOBAL chooses a bank that works with a crypto profile and helps assemble a transparent transaction history — from buying the crypto to converting it to fiat. That way your crypto money passes compliance instead of running into a refusal.
Robert HaasHead of Company Formation
07 / Questions
Frequently asked questions
Because of compliance: crypto is harder to trace, and under AML the bank must prove the funds are legitimate. For many it is easier to refuse — a form of de-risking.
With a transparent chain: where it was bought, which exchanges it passed through, how it was converted to fiat — with statements and confirmations. Traceable exchanges are better than anonymous wallets.
Few: crypto-friendly banks have built processes specifically for such transactions. They are chosen to suit your profile and jurisdiction.
Yes, including through blockchain analytics. The bank will not accept funds from addresses linked to sanctions or crime.
Yes, with a transparent history. The larger the sum, the more detailed the chain of the crypto’s origin and conversion to fiat must be.
Do not treat it as a dead end: choose a bank that works with a crypto profile and assemble a strong transaction history. Then the account is opened.
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