Bitcoin has enjoyed success while cementing its place as the leading digital asset in the crypto sector in the past few days. To establish this point, the digital asset has led one of the most remarkable rallies across the market, giving traders double figures just days into the new year. But while traders are seemingly overjoyed at the massive amount of success the coin has recorded and the profits it has brought them, traders in the United Kingdom face some difficulties regarding their profits.
According to various news outlets and traders in the region, banks do not allow them to cash out their profits into their bank accounts. Most of the financial institutions around the area refuse direct transfer from crypto exchanges into accounts belonging to their customers.
Banks are wary of criminal activities via crypto
One notable example of banks that has refused payments is HSBC, with the bank already stating that its customers would not be allowed to transfer cash from their wallets and crypto accounts to their bank accounts. Others are still allowing their users to send their profits to their checking accounts, but traders have also complained that the banks are still not allowing them to purchase or sell digital assets with their credit cards.
With Bitcoin now trying to touch the $40,000 price region and the coin already bringing back profits worth about 300% since last year, traders think this is the perfect time to cash in on their earnings before the digital asset undergoes a bearish run. If you want to buy digital assets using crypto exchanges across the United Kingdom, you will first be required to sign up on a popular exchange around the region, such as Coinbase.
You will then be required to do a wire transfer of the amount you want to deposit on the crypto exchange. Some banks have told their clients that they will need to exchange their digital assets for fiat currencies before making deposits from crypto exchanges.
Crypto exchanges now beefing up security on their platforms
Traders have been jittery in the last few days since the issue was first discovered, with some of them lamenting that they would not be able to take their profits anymore if Bitcoin trades below their profit margin. With this news now making waves across the region, financial advisors have said that traders should not jump into trading digital assets without first consulting their banks and seeking the right guidelines to encounter issues like this.
Experts have also said that most banks are wary of digital assets due to several malicious activities that could be carried out using the digital asset. It is tough to trade where digital assets come from, so banks feel most people use it as a front for illegal activities.
While the pandemic has pushed people to trade crypto, which serves as a hedge for inflation and other activities, various traders are still worried about how secure their investment is. The number of hacks suffered in the sector increases. While hackers are getting smarter, exchanges are increasing the security of their platforms.