Proof of funds

[bisk]

Hey

Let's assume you exchange crypto holdings to significant fiat amount into personal account, without proof of funds, maybe after extensive checks.

1. Would you have to do it again, if you wanted to incorporate company with these fiat funds in another bank? Just bank statement with these funds will be accepted by other banks?
2. Will there be a chance to change source of these funds? Let's say buy stocks, then sell? Will broker want to make checks and don't approve like a bank? After then another bank will want trading history and source for starting deposit? Without significant profit it will be probably rejected?
3. If I understand correctly, UK banks want also proof of wealth. Is this only UK thing or it will be global one day? Any European banks require that already?
4. Will this be a nightmare till death? After change/merger/insolvency/etc of the bank you will have to do it again wasting a lot of time or without success?
5. Funny part. Exchange crypto to fiat, then fiat to crypto, then crypto to fiat will give you acceptable proof of funds because now you got the proof of purchase? Is it legal? I assume it won't work for serious money.

 

[LondonOTC]

If you can prove you bought that crypto in the past, then is ok, you only pay the CGT.
If not, then you need to get somebody that pays you an invoice with crypto for some fictional service.

 

[bisk]

Your answer is completely off topic.

 

[troubled soul]

bisk said:
Hey

Let's assume you exchange crypto holdings to significant fiat amount into personal account, without proof of funds, maybe after extensive checks.

1. Would you have to do it again, if you wanted to incorporate company with these fiat funds in another bank? Just bank statement with these funds will be accepted by other banks?
2. Will there be a chance to change source of these funds? Let's say buy stocks, then sell? Will broker want to make checks and don't approve like a bank? After then another bank will want trading history and source for starting deposit? Without significant profit it will be probably rejected?
3. If I understand correctly, UK banks want also proof of wealth. Is this only UK thing or it will be global one day? Any European banks require that already?
4. Will this be a nightmare till death? After change/merger/insolvency/etc of the bank you will have to do it again wasting a lot of time or without success?
5. Funny part. Exchange crypto to fiat, then fiat to crypto, then crypto to fiat will give you acceptable proof of funds because now you got the proof of purchase? Is it legal? I assume it won't work for serious money.
Click to expand...

Can you simplify your need ?
Very complex to understand .

If you just want to convert crypto to Fiat without source of fund ,You can do OTC exchange with INVOICES.

Or You can buy with it gold and convert it to cash using smurfing method.

Or You can use prepaid card loaded with bitcoin.

Or There are many people on LocalBitcoins.com: Fastest and easiest way to buy and sell bitcoins - LocalBitcoins they pay you in PAYPAL account.

Bitcoin -> Paypal -> Bank account.

There will be no problem in last method because Bank never question Source of the fund when it come from PAYPAL. In worst Case your paypal account will banned . But there will be no problem at your bank account.


Hope this help

 

[bisk]

I am not asking how to exchange bitcoin to fiat. I am asking what you can do next.

When you have fiat in the bank A after exchange from crypto (e.g. they accepted you without POF) and want to incorporate a company. You need to use bank B for company account in a different country. Bank B will probably want to know source of funds. Will they be satisfied with just bank statement from bank A? They will probably be interested how these funds were obtained. When you say it's crypto exchanged to fiat accepted by bank A they will probably refuse?

Cards, paypal, gold won't give you proof to open company account, while OTC invoices can be an offense.

 

[xMarcel]

LondonOTC said:
you need to get somebody that pays you an invoice with crypto for some fictional service.
Click to expand...

Good points!

Which type of fictional service works the best in your opinion? Let's say if we are talking about regularly incoming funds >€10k/month.

Also, another possible concern i see is that the bank may be suspicious regarding your counterparties. For instance, if your "fictional service" is consulting or selling software and you always receive funds from the same exchangers/shell companies and provide to the bank the same type of invoices.

 

[troubled soul]

bisk said:
I am not asking how to exchange bitcoin to fiat. I am asking what you can do next.

When you have fiat in the bank A after exchange from crypto (e.g. they accepted you without POF) and want to incorporate a company. You need to use bank B for company account in a different country. Bank B will probably want to know source of funds. Will they be satisfied with just bank statement from bank A? They will probably be interested how these funds were obtained. When you say it's crypto exchanged to fiat accepted by bank A they will probably refuse?

Cards, paypal, gold won't give you proof to open company account, while OTC invoices can be an offense.
Click to expand...

Overthinking Lead to depression.
Just Simple invoice Works.

Or

You make multiple company for that purpose.

Or

You can use different Escrow service online for receive money.
Bank will get money from that Escrow Account .
There will be no problem.

Hope I get it right.

 

[Piano]

hirenshukla2017 said:
Can you simplify your need ?
Very complex to understand .

If you just want to convert crypto to Fiat without source of fund ,You can do OTC exchange with INVOICES.

Or You can buy with it gold and convert it to cash using smurfing method.

Or You can use prepaid card loaded with bitcoin.

Or There are many people on LocalBitcoins.com: Fastest and easiest way to buy and sell bitcoins - LocalBitcoins they pay you in PAYPAL account.

Bitcoin -> Paypal -> Bank account.

There will be no problem in last method because Bank never question Source of the fund when it come from PAYPAL. In worst Case your paypal account will banned . But there will be no problem at your bank account.


Hope this help
Click to expand...

Up till what amounts of money can you transfer into PayPal without questions or frozen account ?

 

[Fred]

In your case I would incorporate the company upfront and cash out the Bitcoin to the business bank account and make them looking like business earnings.

We do this regularly with clients incorporating a Dubai company.

The business plan and the transaction histroy will be build together with all the other documents from our side.

After the Dubai Company Formation is done we open an Interactive Brokers account under the company name.

From this point on you can start investing without every facing any questions.

See my more detailed answer here as well:
https://www.offshorecorptalk.com/threads/cryptofriendly-banks.32480/#post-163423

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