Best Crypto Friendly Banks in the World

When it comes to Bitcoin and other cryptocurrencies, many banks around the globe steer clear. They often avoid or even ban the use of crypto in their accounts due to a perceived threat to FIAT currency and their operations as a whole.

They also tend to believe there is a high risk of fraud and money laundering when crypto is in use.

Even with these concerns, many banks and fintechs have opened their doors to customers using cryptocurrency.  As more and more merchants have added cryptocurrency as a payment option, the demand has increased.  Many of these banks have integrated with crypto payment processing services to handle all types of settlements between businesses and consumers.  

Finding crypto-friendly banks and fintechs can be a challenge at times.  

Crypto & Banking Overview

Cryptocurrency has revolutionized the financial landscape, prompting traditional banks to adapt to this new digital era. As more people embrace digital assets, the demand for banking services that support cryptocurrency transactions has surged. Crypto-friendly banks offer a bridge between conventional financial systems and the world of digital currencies, allowing customers to seamlessly manage both fiat and crypto assets.

These innovative financial institutions provide a range of services tailored to cryptocurrency users, from simple buying and selling of digital assets to more complex offerings like crypto-backed loans and interest-bearing accounts. By integrating blockchain technology into their operations, crypto-friendly banks are positioned at the forefront of financial innovation, offering enhanced security, faster transactions, and greater transparency.

For investors and enthusiasts looking to navigate the crypto space with ease, choosing the right bank can make all the difference. These banks not only facilitate crypto transactions but also offer educational resources and tools to help customers make informed decisions in this rapidly evolving market.

Understanding Crypto-Friendly Banks

Crypto-friendly banks are financial institutions that support cryptocurrency transactions and services. They allow customers to connect their bank accounts to crypto exchanges, facilitating the purchase and sale of digital assets. These banks often offer additional features such as crypto custody, trading platforms, and specialized accounts for crypto businesses.

The importance of crypto-friendly banks lies in their role as intermediaries between the traditional financial system and the crypto ecosystem. They provide a crucial on-ramp for individuals and businesses looking to enter the cryptocurrency market. By offering FDIC insurance on fiat deposits and integrating with established crypto platforms, these banks help mitigate risks associated with digital asset investments.

Comparison with Traditional Banking Services

Crypto-friendly banks differ from traditional banks in several key aspects:

• Services: Offer crypto-specific products like Bitcoin trusts and exchange integrations
• Transaction speed: Typically faster for crypto transfers compared to traditional wire transfers
• Fees: May have competitive rates for crypto transactions
• Accessibility: Often provide 24/7 access to crypto markets

Traditional banks focus primarily on fiat currencies and may restrict or prohibit crypto-related transactions. In contrast, crypto-friendly banks embrace digital assets as part of their service offerings.

Regulatory Landscape and Compliance

Crypto-friendly banks operate in a complex regulatory environment. They must comply with traditional banking regulations while navigating the evolving landscape of cryptocurrency legislation. Key compliance areas include:

• Anti-Money Laundering (AML) protocols
• Know Your Customer (KYC) procedures
• Reporting requirements for large transactions

These banks work closely with regulatory bodies to ensure they meet all legal obligations. Many implement advanced risk management systems to detect and prevent fraudulent activities. By adhering to strict compliance standards, crypto-friendly banks aim to legitimize cryptocurrency transactions and foster trust in the digital asset ecosystem.

Best Crypto Friendly Banks

1. Wirex

Wirex is based out of the UK and is one of the best crypto-friendly app that allows for the buying and selling of crypto. Wirex offers users a number of benefits including a 2.0% cashback in the form of WXT. They also offer up to 16% interest on deposits held in our savings accounts for fiat currency and we offer up to 10% interest for crypto currency. 

Accounts that are opened in Wirex come with a link debit card that is currently open to several dozen countries around the world. The card and account looks like your standard UK bank card card with an account number and sort code that is registered by the UK Financial Conduct Authority.

A Wirex account also gives you the ability to buy, store and manage a number of different cryptos including you standard BTC, LTC, XRP, ETH and are able to convert to a number of fiat currencies including USD, EUR and GBP. Accounts are easy to setup and transfer, with instant transfers via SEPA and SWIFT.

2. Ally Bank

Originally called GMAC, (General Motors Acceptance Corporation), Ally was rebranded in 2010 to the Ally Bank that you recognize today. They are 100% virtual with no brick-and-mortar banking locations. They offer a variety of services to their clients and are crypto-friendly.

Ally allows their customers to buy Bitcoin and other cryptocurrencies using their Ally debit or credit card, unlike a lot of large commercial banks. They also allow wire transfer purchases of crypto that are seamless and simple.

3. Agribank

Agribank is a commercial founded in Malta back in 2012, which has become one of the most crypto-friendly countries in Europe thanks to the favorable tax rate and legislation that has allowed crypto businesses and enterprises to flourish in the country.

While Agribank's focus has been on the agriculture and renewable industry they have been noted as a crypto-friendly bank and are open to transactions in crypto without any issues.

4. Barclays

This is the largest bank in the United Kingdom. Barclays is also a global investment giant that facilitates transactions all over the world. Although they weren’t always a supporter of Bitcoin or other cryptocurrencies, they have shifted their strategy in recent years.

Barclays is highly active with blockchain technology and allows their clients to conduct transactions using crypto in a safe, secure environment. Credit and debit cards issued by Barclays can be used to purchase cryptocurrency. There are a few conditions to these transactions, but they are generally very simple to complete.

5. Simple Bank

This is a fairly new bank in the United States. It was founded in 2009 in Portland, Oregon and currently only accepts customers who are US citizens. They are FDIC insured and are partnered with The Bancorp and BBVA USA.

The cool thing about Simple is that you can actually track your budget and expenses all in the sample place. If you have a checking account with Simple, you get access to this service, which can be extremely helpful for both business and personal use.

Simple Bank partners with crypto exchanges to allow their clients to conduct transactions in cryptocurrency. Their clients can purchase Bitcoin and other crypto with their credit or debit card in a secure environment.

6. National Bank Of Canada

The National Bank of Canada is one of the largest Bitcoin-friendly banks in North America. They have strong partnerships with cryptocurrency exchanges and allow their customers to purchase crypto with their credit cards. Many customers use them because of their crypto-friendly policies.

However, crypto transactions are also highly regulated through the National Bank of Canada. Although they don’t want to hinder their customers’ activity, they do want to protect the institution from unnecessary risk.

7. Goldman Sachs

Goldman Sachs is one of the biggest names in the financial industry. The company was formed in 1869 and has grown into a global financial and investing institution. They do not offer any checking account services, but they do offer savings, lending and investment services.

The fact that Goldman Sachs is highly supportive of cryptocurrency gives them an edge on their competition. They didn’t back down from it when other large banks did. Instead, they embraced it and are now one of the most popular banks for crypto investors and traders.

8. Revolut

Revolut is a European bank with humble beginnings. They are headquartered in the United Kingdom and provide services to customers in the UK and throughout Europe. They offer a variety of accounts, all of which support cryptocurrencies.

Customers of Revolut can purchase crypto with their debit or credit cards. They can also use their checking accounts to make purchases.

9. Fidor Bank

If you’re looking for a bank with extensive knowledge of cryptocurrency and its regulation, Fidor bank might be a great option for you. They focus mainly on merchant accounts that can accept crypto exchanges, purchases and trades. They have sophisticated security features to help protect your business and your customers during these transactions.

They offer a fully customizable suite of tools for merchants wishing to accept crypto payments from customers. They also have a ton of partners in the crypto exchange business, which helps them facilitate transactions seamlessly with multiple exchanges.

10. Change Bank

Change bank is extremely forthcoming about their dealings with cryptocurrency, specifically Bitcoin. Their messaging to consumers talks about the ability to buy, sell and trade Bitcoin for the best rates on the market. They allow their customers to use their credit cards to make these transactions.

Change also offers an easy process for opening an account, with a minimal investment. Once your account is open, you can process your Bitcoin transactions online or via their mobile app.

How to Open a Bitcoin Bank Account

After researching these different banks and finding the one that suits your needs, the process of setting up an account is very simple. However, each bank will be a bit differernt.

The majority of these banks allow you to apply for and fund your account online. You will need to provide some information such as name, phone number, address and potentially some other details about you and/or your business.

However, it literally can be completed in a matter of minutes and even the KYC can be finished quite quickly, making the entire process much easier than a traditional bank.

Crypto Trading and Investment Options

Many crypto-friendly banks now offer direct cryptocurrency trading services. Customers can buy, sell, and hold popular cryptocurrencies like Bitcoin and Ethereum through their bank accounts. Some banks provide access to a wider range of altcoins and tokens.

Investment options often include crypto funds and ETFs, allowing clients to gain exposure to digital assets without directly owning them. These products can offer diversification and professional management.

Crypto-backed loans have emerged as a popular service. Borrowers can use their cryptocurrency holdings as collateral for fiat currency loans, providing liquidity without selling their digital assets.

Digital Asset Management

Banks are developing sophisticated digital asset management tools for their customers. These platforms often include real-time portfolio tracking, performance analytics, and market insights.

Some institutions offer custody services for cryptocurrencies, providing secure storage solutions for large holders and institutional clients. This service addresses security concerns and regulatory requirements.

Wealth management services have expanded to include crypto assets. Financial advisors at these banks are increasingly equipped to guide clients on incorporating digital assets into their overall investment strategies.

Crypto Transactions and International Services

Crypto-friendly banks facilitate seamless transactions between fiat and cryptocurrencies. Many offer competitive exchange rates and reduced fees for crypto-to-fiat conversions.

International money transfers using blockchain technology have become a key service. These transactions can be faster and more cost-effective than traditional wire transfers.

Some banks issue crypto debit cards, allowing customers to spend their digital assets at merchants worldwide. These cards often come with rewards programs and cashback in cryptocurrency.

Innovative Banking Solutions for Digital Assets

DeFi integration is an emerging trend among crypto-friendly banks. Some institutions are exploring ways to offer access to decentralized finance protocols through their banking platforms.

Yield-earning accounts for cryptocurrencies are gaining popularity. These accounts allow customers to earn interest on their digital asset holdings, similar to traditional savings accounts.

Smart contract-based services are being developed for automating various banking processes. These include loan approvals, insurance claims, and trade finance operations using blockchain technology.

Conclusion

If you’re looking to invest in Bitcoin or other cryptocurrencies, it’s important to choose a bank that will allow you to do so. The banks we’ve discussed in this article have some specific products and services that will help you with your Bitcoin transactions.

Most of them also offer some consultative services to help you choose the right products and services for your needs and the needs of your business.