If you're looking to purchase cryptocurrency through popular exchanges like Coinbase or Binance, you might be wondering if you can use Wise (formerly TransferWise) to fund your account. The short answer is no - and here's why.
Wise's Policy on Cryptocurrency
Wise explicitly prohibits the use of their service for cryptocurrency-related transactions. According to their Acceptable Use Policy, Wise does not support:
- Sending money to cryptocurrency exchanges like Coinbase or Binance
- Sending money to crypto wallets designed to hold or trade cryptocurrencies
- Sending money directly to individuals for purchasing Bitcoin, Ethereum, or any other virtual currency
Why Wise Restricts Crypto Transactions
Wise views cryptocurrencies as high-risk investments that could potentially breach local, national, or international regulations. As a regulated financial institution, Wise must comply with strict anti-money laundering (AML) and know-your-customer (KYC) requirements.
The company states that cryptocurrency trading exceeds their risk tolerance, which is why these restrictions are in place for both personal and business accounts.
What Happens If You Try?
If you attempt to use Wise to send money to a crypto exchange:
- Your payment may be rejected
- Your transaction could be canceled or returned
- In some cases, Wise may close your account entirely
Receiving Money from Crypto Platforms
While you cannot send money to crypto exchanges, Wise does allow you to receive money from cryptocurrency platforms under specific conditions:
- The platform must be regulated and/or supervised in the EU or UK
- The crypto exchange must have proper licensing
Exceptions to the Rule
Wise does allow some exceptions to their cryptocurrency policy, including:
- Receiving salary payments from businesses in the cryptocurrency industry
- Receiving payment for professional services provided to crypto businesses
- Buying shares in cryptocurrency-related companies
Alternative Payment Methods for Crypto Exchanges
Since Wise isn't an option for funding your crypto exchange account, you might consider these alternatives:
- Bank transfers directly from your traditional bank
- Debit or credit cards (though fees are often higher)
- PayPal (where supported by the exchange)
- Other payment processors that don't restrict crypto transactions
Final Thoughts
While Wise offers competitive rates for international money transfers, it's not a viable option for cryptocurrency purchases. Before attempting to fund any crypto exchange, always review the payment methods they accept and ensure your chosen payment provider allows such transactions.
If you're already a Wise customer, it's best to use alternative payment methods for your cryptocurrency investments to avoid potential account restrictions or closures.