Swissquote - Source of funds

[trek]

Martin Everson said:
Some general advice. CSV of trading action has very little to do with source of funds. They are interested in where you got the fiat to buy the crypto in first place. That's what source of funds means. You have that data so show that to them and show them the movement of those funds to the exchanges. Then you can add on the trading activity data and you should be covered in principle.
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I'm currently living in Portugal but I did some trades a few years ago in my country of origin. Do you reckon there is any chance Swissquote could leak the source of funds + trading activity documents that I will provide to my country of origin? I guess the answer is no, but just want to be extra cautious.

 

[Martin Everson]

trek said:
I'm currently living in Portugal but I did some trades a few years ago in my country of origin. Do you reckon there is any chance Swissquote could leak the source of funds + trading activity documents that I will provide to my country of origin? I guess the answer is no, but just want to be extra cautious.
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Whatever you give to Swissquote will stay on record. But chances of something happening is very slim. Unless you gave some details to Swissquote in past that give rise to indicia with your country of origin then nothing will happen.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[trek]

Martin Everson said:
Whatever you give to Swissquote will stay on record. But chances of something happening is very slim. Unless you gave some details to Swissquote in past that give rise to indicia with your country of origin then nothing will happen.
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Even in such a case, do you know if they would simply report the fact that I hold crypto or the whole set of provided documents?

More generally, if I want to cash out crypto, would you recommend something different to avoid leaking info to my country of origin? My understanding is that even if I go with a crypto exchange and transfer funds to a bank, I will be asked the same set of questions about the source of funds and transaction history. Therefore, I'd face the same risks as with Swissquote. Am I correct?

 

[Martin Everson]

trek said:
Even in such a case, do you know if they would simply report the fact that I hold crypto or the whole set of provided documents?
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I don't know how Swissquote would refer to your cypto account you hold with them if thats what you mean? But in general ifs its considered a custodial accounts they report the gross amount of dividends paid or credited, gross interest paid or credited, gross proceeds of a sale of redemption and gross amount of other types of income paid or credited to the account. They would not send any personal documents. That is something that is not automatic and requires a DTA to be invoked to get this kind of information. And we are talking your home country having clear evidence of tax evasion or a tipoff for example.

trek said:
More generally, if I want to cash out crypto, would you recommend something different to avoid leaking info to my country of origin?
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What is your country of origin and are we talking large values? You might be worrying about nothing in the end. If you have left no indicia with Swissquote of your home country you should be fine.

trek said:
My understanding is that even if I go with a crypto exchange and transfer funds to a bank, I will be asked the same set of questions about the source of funds and transaction history. Therefore, I'd face the same risks as with Swissquote. Am I correct?
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Yes. You may get lucky and no questions ask but why play roulette.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[trek]

Martin Everson said:
But in general ifs its considered a custodial accounts they report the gross amount of dividends paid or credited, gross interest paid or credited, gross proceeds of a sale of redemption and gross amount of other types of income paid or credited to the account.
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Thanks for the detailed explanation.

Martin Everson said:
What is your country of origin and are we talking large values? You might be worrying about nothing in the end. If you have left no indicia with Swissquote of your home country you should be fine.
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7-figure. Opened the Swissquote account after leaving my country a few years ago so that should be fine. My worry was more related to my country of origin (which is a member of the EU) finding out about trades from a few years ago on other exchanges. Swissquote is asking me about all activity, so that's why I got a bit worried since, as you say, they will keep everything on record and they could potentially leak that information.

Martin Everson said:
Yes. You may get lucky and no questions ask but why play roulette.
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Glad you confirm.

 

[bubbledouble]

trek said:
Swissquote is asking me about all activity, so that's why I got a bit worried since, as you say, they will keep everything on record and they could potentially leak that information.
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who know if they will do that at any point later, no one can guarantee.

 

[Martin Everson]

trek said:
7-figure.
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Ok then I see why your really concerned hi%#. That's not a couple of thousand.

trek said:
My worry was more related to my country of origin (which is a member of the EU) finding out about trades from a few years ago on other exchanges.
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They won't unless the exchange is asked by your country of origin to provide client transactions siimilar to what HMRC asked from coinbase.

https://cryptodaily.co.uk/2020/10/hmrc-set-to-tax-and-coinbase-users

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[trek]

Thanks for the help!