The cryptocurrency market is more significant than ever; with a value of $1.03 billion in 2019 and a projected value of $1.40 by 2024, the industry shows no signs of slowing down. It’s no secret that an increasing number of people are shifting their focus towards cryptocurrency, and this interest is only expected to grow further.
However, despite the cryptocurrency market’s attention, users still face bank-related issues, such as frozen accounts due to activity related to digital assets and rejected crypto payments. Apart from this, there are also issues regarding delayed transactions in crypto exchange accounts.
In an ideal world, bank transfers would instantly occur from one institution to the other. However, banks today typically work with financial institutions that serve as intermediary banks to bring payment to its final destination. While it’s normal for this process to take several days, there are a few things you can do to ease it.
Registering with a crypto-friendly bank and following a few simple lessons can help reduce the hassle typically linked to crypto transactions. It can guarantee a seamless process ensuring your funds will get credited to your crypto exchange account.
Here’s what you need to look out for:
Check if the bank is crypto-friendly
Most financial institutions have a framework that determines what kind of transfers are considered safe and which ones aren’t. Hence, numerous factors fall under this framework, including internal management criteria and local regulations.
Since cryptocurrency transactions are still typically new, such transfers may be considered high-risk. Additionally, cryptocurrency transfers may demand more intervention from the bank in terms of Human Resources and payment handling. This extra workload could result in staff training, increased costs, and additional compliance procedures.
Due to these factors, your bank may choose to ban or restrict payments linked to cryptocurrency exchanges and digital asset-related services. In this case, it would be a better idea to opt for a financial institution that supports such transactions and doesn’t cause unnecessary hassle. Ideally, consider your options and discuss the nature of your transfers with representatives from different banks before registering with one.
Registering with accurate credentials
It’s not unusual to make mistakes and typos, especially when a document is essential. However, in the case of a bank transfer, these unintentional typos can hinder the process and cause unnecessary delays. While the funds will be released from one end, they won’t reach their final destination and, hence, will be returned.
To avoid this, you should always double-check your bank credentials before initiating a transfer. Apart from this, if a mistake occurs, you should notify your bank at your earliest to ensure they can return your funds to your account as soon as possible.
Inform your bank about international transactions
You may complete every part of the transfer process correctly, but your bank can still block the transaction, which typically occurs when international banks are involved. This block happens when you usually execute domestic transactions, and a sudden international transaction gets flagged. Additionally, crypto exchange transactions also draw attention from a bank’s compliance team.
Your bank may block any unusual or suspicious activity that doesn’t fall under your usual activity. In this case, it’s a good idea to inform your bank in advance if you’re planning on making any international transactions. Reporting activity that deviates from your account’s regular transactions can help prevent unnecessary blocks.
Verify transfer restrictions
Doing everything right may still result in a rejected transaction. This rejection isn’t unusual since it’s normal for banks to have restrictions in place related to one-time transfers of a certain amount to ensure your transaction complies with its anti-money laundering policies and is legitimate. This is why it’s always a good idea to double-check what limits, if any, you have on your transfers.
Check the value date
While this may seem like a given, you’d be surprised how many people tend to overlook it. Your transactions won’t usually be processed in the same amount of time, but you can still expect when it’s supposed to be complete with a “value date.” This date, which refers to the time date by which the bank expects to complete everything to fulfill the transfer, is set by the bank.
If, for instance, you’ve initiated a bank transfer to a crypto exchange, you might find that your funds have been deducted but haven’t been sent due to a lack of value date. By this date, though, the recipient bank will typically receive the funds.
The value date is usually stated on the transfer receipt, but sometimes you have to ask the bank for an MT103. This form highlights all the necessary information regarding your payment location. While this form may not be available initially, you can usually gain access to it after a week.
Due to the industry’s relatively new nature, many people often face issues related to their cryptocurrency transactions. To minimize these issues, it’s vital to perform due diligence from your end and do whatever you can to eliminate the unnecessary hassle and ensure a smooth process.
Apart from the usual hindrances, though, a bank transfer is an excellent option for crypto transactions. It’s also cost-effective with minimal fees and is one of the most straightforward ways to transfer money from one place to another. Understanding what it involves and what you need to do from your end can guarantee a seamless experience for your crypto-related work.
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