Topic: CASHING OUT YOUR CRYPTO-CURRENCY PROFITS - page 7. (Read 1536 times)

I personally know someone who trades cryptocurrency daily and he has a huge chunk of bitcoins inside his local wallet. When he tried to deposit the amounts directly to his bank, the bank called and questioned the origin of the money. Unfortunately, he had to do weekly trips to the US to clear his accounts and the ambiguities related to his deposits.

The issue regarding cryptocurrency is not itself, but the doubt where the money came from. Banks question this as the anonymity makes them doubtful that this may be a scheme of money laundering.


They will literally question everything if you make huge chunks of deposits/withdrawals in a span of one day. This might pose a problem to traders and investors who focused more on the long-term aspect of realization of profits.

I do not always make cash withdrawals from profit results usually prefer to hold and use it for more trading so I can have a lot of trading capital, if there is nothing important to be needed I choose to use the results of profits for capital trading again .

In theory, it is not hard to open bank account for the freelancers but if the bank account is linked to the governmental tax number it will be easier for the bank representative to confirm your annual salary. In another hand, the bank will also take its profit from your yearly turnover but their priority to make a contract for the regular people who wants to take credit for yearly percentage over 15%. I also don't share my crypto profits with the governments and they have no tools for tracking my transfers made with offshore banking. There are always other alternatives, you need to use these alternatives for bypassing the blockade by the governemtns, banks.

Been trading on LBC and paxfull for few years and had all UK accounts even Clydesdale etc. I know what I'm saying. Been there done things. Lloyds/Halifax is the same bank, once u got 60 day letter in one next one is automatically terminated also.
Rest also are shit. U don't have to believe me. Just go and try open account with Santander. Mention crypto and watch what will happen.

Good luck.v

Same thing, I was hesitant to open my own bank account because of this, conflict. Especially my funds came from online gambling. Although there is no law in my country that restrict bitcoin powered online gambling. There's still a thought in my mind everytime i'm cashing out in remittance center that, what if they ask me where the funds came from, considering it's a bit huge, above normal on what others recieve in remittance. The last time I made a transaction, they ask me for 2 valid ID unlike the usual, just 1 ID.

Here in Brazil you just need deposit amounts below 500usd, then The Banks dont send The info to regulation.

You can make many deposits per day

Making huge profits is bound to get you some unwanted attention and the banks may flag it and it may warrant some extra investigation, But if everything is done legally and you have every documents to support that the money was not made fraudullently and have paid all taxes involved, then i do believe that even when an investigation is opened you, they will find nothing wrong in the end.

You think that Lloyds/halifax,  Rbs/santander/hsbc/barclays are bad for crypto?

Didn't Barclays embrace crypto by supporting cash transactions for coinbase, even though they have now cancelled their relationship with coinbase?
I don't feel that Barclays is anti-crypto, but i feel that they had concerns with privacy coins.

It is not as simple as that.
When police come to ask you questions about crypto earnings, it is because the Bank has made a complaint/report.
The police will come with a "Search Warrant", so that they can forcefully enter your home without your permission, and "confiscate" ALL of your electronic communication devices.
While doing this, the Police have the opportunity to "inspect" your home or anything else that they feel is inappropriate or "illegal", so that they can complicate your case with additional charges.

They have the opportunity to legally bully you in your own home, in addition to the delays and complications caused by their "home invasion" and confiscation of your electronic communication devices.

If cryptocurrency is not illegal in your country and it doesn't violate any law in the government, I think you don't have to be afraid if ever police would come and ask you some questions. But you can go to your local bank branch and deposit your money, if they ask you some question, then I think that's the time you could answer. But if they didn't ask at all, you don't have to tell them. Plus, I don't think that the bank will just call the police that fast without investigating on their own or looking at your history of transactions?

 I remembered that when I tried to apply an open account into different banks they have the same reason why
they declined me, because even I have a huge amount profit that I get from crypto they won't consider it as your regular income. Due to they required me to submit CEO(certificate of employment), they won't accept if you are only a free lancer. Their should be a company that will prove that you are one of them, that's my experienced. Which is differ to your statement, sometimes bank are being unfair for this scenario even I like to have an account to any bank, but I failed.

Let me explain first:

This is not financial advice but my own experience of cashing out big amount using banks, cash and cc.

First of all, i believe u r in UK so therefore you a little bit screwed. But no worries there is nice way to cash your profits out.
Ok, if you wish to use UK banks and cash out none of majors will help. Lloyds/halifax(same bank-they hate crypto stuff), Rbs/santander/hsbc/barclays are the worst ones. Them banks offering faster payments but you can be sure that they will delay anything which is deemed suspicious. Most of uk banks over 15k will fill SAR against you to NCA and this basically means you will loose control over your funds for a period of 7-30 working days.
Bank usually send request to NCA to validate TX or to block for further enquiry. Because of laws in UK bank will be quiet about this and if you try to call them and find out whats happening they will simply ignore you untill NCA answer shows up. Now funny part: if you go to branch of any on this banks-clerk will not see anything wrong. They wont be able to send/withdraw /move funds but simply will have message to contact customer support.

About NCA and SAR read more here: The principal relevant legislation is the Proceeds of Crime Act 2002 (POCA) and the Money Laundering Regulations 2007 (MLR), whose combined effect is that banks will often feel compelled to file Suspicious Activity Reports (SARs) to the National Crime Agency (NCA), and not complete a transaction until the NCA consents.

Santander going even further when you trying open bank account and if they ask about crypto and you confirm you will be using account for any crypto related stuff they will not open your account or terminate already opened if they see any funds from or to exchanges.

Metro bank is rather neutral but their fraud filters will block anything suspicious. Every "new account" opened in any bank using learning system. How you spend /how you get paid, how big transfers you getting and how big you making.
Sometimes if you not spending big amounts and choose to buy TV in argos transaction is on hold untilll bank verify this is coming from account holder.

Same with transfers. If you never made big transfer and one day choose to do let say 30% of your account balance your transfer will be stoped and blocked for 24h , after that time or bank will contact you or they will allow tx to go ahead.

Fun fact: if you spend in short time span 50% of your funds and try to send another 10% this tx will be blocked also.

Ok, what about nationwide? Stay away from it! they got small limits and they like to block users funds untill you show up in branch with ID. Beside Nationwide is known for blocking users funds which was using crypto exchanges like coinfloor or bittylicious sellers.

So how to cash out you asking?

First you need to make sure you have good accountant and you paying taxes from your trading or business. Secondly apply for estonian E-residency. Small card which allows any otehr nationality that estonian to open and run business in estonia under their tax laws and banking system.

Start here: https://e-resident.gov.ee

Application cost 100euro and once you succesfull you can pick the card and digital key in estonia embassy in london.

Once you got your estonia e residency card check this company: https://e-estonia.com/solutions/business-and-finance/e-business-register/

Once you got business setup just open bank account and you ready to accept any payents from any exchange in huge amounts.

For extra knowledge just go here: https://1office.co/blog/5-reasons-start-online-business-estonia-2/

Good accountant will make sure you in right place with your taxes. estonia is great place with lower tax brackets if you wish to pay taxes there. Just make sure your business account is linked to your exchange account. Otherwise as a person you will be liable to tax in UK and estonia. And you dont wont that do you?

Im happy e-resident of estonia. Its really working. And all this is perfectly legal.

Good luck.

There is nothing to be panicked as long as you are paying your tax as capital gains. Looks like you are being paranoid for making a profit in the market which is unwarranted, you need to worry only if you are challenging the government by not paying their tax and going against them, if not you are safe.

You dont have to tell anything. For sure tehy will ask you when will be to much. What you have to do is to report your profits to your tax office and then pay tax on capital gain.

If you are really thinking about cashing out some of the profits that you have obtained through cryptocurrencies and make some bank deposits for amounts of money that would be way bigger than what is common in that account then it is better for you to talk to your bank about your situation, I think it is even better that you open a new bank account with the express purpose of depositing your cryptocurrency profits in it and you do the same thing with this account, talk to the bank about your situation and see if they are OK with it.

If they are not then do not open a bank with them and keep talking to different banks until you find one that is willing to provide the service that you want, if possible try to find other people in the UK that were in your situation and ask them about how did they solved their situation.

I did not mean to say that police are always abusive.
The problem is that things can go bad if your bank reports you to the police and the police obtain a search warrant for your home.
The risk is really only when police obtain permission (search warrant) to enter your home and confiscate electronic equipment for investigation. The physical abuse might happen when the police gain entry and seize property against your will, and if they look for other ways to incriminate you - especially if they have to scuffle up all your property while searching your premises.

This happened to a crypto investor in the UK, in 2018 (I think), when his bank reported him to the police.

SInce you mentioned you are from UK then you no need to worry about your bank deposits but you have to pay taxes since it is considered as capital gains in UK.

Yeah! You have nothing to worry about as long as the money you deposit doesn't came from shady stuffs. Actually, I also experienced to be questioned during one of my savings withdrawal (from a remittance center only). The teller ask me whether I have a work or not probably because I just look like an ordinary teenager which is too young for making cash outs oftenly . I only said that I have bitcoin and that's all, he already stop asking me. So if you know that crypto is not illegal in your country then you won't have any problems at all.
They should not work that way. Police authorities will not act "forcibly" unless you are proven guilty.

Here in in the Philippines, if the bank account notices that you have huge suspicious deposits they would ask you where it's from. They would ask many proofs that if it was really from a legal crypto investment. Authorities will just investigate you if you can't prove your claims. As long as what you're saying is true and you can prove it then you have nothing to worry about.

If I was in your case that the police are abusive like that then I would find someone I can trust to do peer to peer exchange.

Yeah, we want to avoid all this hassle from Authorities, intimidation and police brutality - with police abusing their power when they conduct search warrants on private property to confiscate all electronic devices, also when they try plant evidence or falsify charges against an innocent victim before they make an arrest.
I feel that some corrupt police may want to plant drugs in the house, so that they can falsely claim that the victim intends to use crypto for drugs.
Also, when police conduct search warrants, they try to look for everything else that is wrong with the house, so that they can make an arrest.

People who do KYC need to steer clear of any suspected illegal activity.