Topic: why do Banks ask for income source for bitcoin sold payment (Read 399 times)
I think It's for Security reason.Because we saw since bitcoin transaction is untraceable so the money can be made from illegal works like kidnapping.So, banks want proof that you didn’t made any crime rather It's your valid income.My elder brother also faced the same problem couple of times, bank manager asked for the work proof after withdrawal money.
I think the bank got the right to freeze the account, as long as the authority find something suspicious they deserve to freeze the account and ask the customer to provide extra documents, I think your cousin need to cooperate, there will be a more heavy consequence if the person not cooperating, they will accuse your cousin for money laundering
For sure it is important to give all the information the banks whatever they ask you, we can take steps for the safety and it is all about the security of our money in banks, as there are so many people who scams and hacks even bank accounts but we will are bound by the government to give banks all the information they ask from us. 
I think the bank got the right to freeze the account, as long as the authority find something suspicious they deserve to freeze the account and ask the customer to provide extra documents, I think your cousin need to cooperate, there will be a more heavy consequence if the person not cooperating, they will accuse your cousin for money laundering
If he provides evidence that the money is coming through bitcoin, and he has proof of the exchanges done, they might still not accept because most bank believe that any huge amount of money coming into the account should either be for payment of services or payment for product, I know that to him.It was a payment for bitcoin sold but think of it, he must have exchanged a substantial amount of money too before exchanging it to BTC, except he was among people that bought BTC when the price was very low maybe $500 to $1000 but if we are talking about purchase around $3k and sold it when price was $4k, he must have also invest big amount of money too, these are things they will put together to also ask him for the source of the income he used in investing heavily in BTC too before selling it out.
I think the bank got the right to freeze the account, as long as the authority find something suspicious they deserve to freeze the account and ask the customer to provide extra documents, I think your cousin need to cooperate, there will be a more heavy consequence if the person not cooperating, they will accuse your cousin for money laundering
This issue of your cousin regarding his bank account’s transaction money that as freeze by the government certainly have been found something like an unusual activity in that account. The Singapore’s Bank will not just freeze a certain transaction if they not find it suspicious. But well, it can only be resolve by your cousin. She/he is the one that can make things settle down. He just needs to comply what the banks requires to make process your cousin’s transaction money. Moreover, if there is no illegal doing or issues involve then this will end up all right and fine.
I agree on this, we can't blame the bank why they had to freeze your money maybe they think that very looks suspicious. We know the bank did not support cryptocurrency and they think that the money of your cousin was from money laundering or fraudulent. Anyway, if using cryptocurrency in your country is not prohibited then, there's no such thing to worry about. Just give them the right info. and tell the truth. 
Banks were regulated and working on certain terms so if you are doing huge transactions often then you won't be asked for any verification but sudden deposit of huge amount of money from international transaction will get you in trouble,you might choose the split trades or some other services other than bank transfers.But now you can only get your account back from your bank.
Even if you are making big transaction every time, you would be under the eyes of authority because they always correlate your income sources and the income you transact every time.So yeah, this could get you in trouble. Cryptocurrency has made it possible to send the money anonymously from one place to another without being noted by the authorities and that is the reason why many countries do not allow cryptocurrency because they know it might lead to a menace in future.
my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
banks have this authority. In my country, banks have blocked the accounts of many people until these people file income statements, and this is causing problems for many people because most of the people in my country do informal business. This problem will worsen when involves bitcoin. how would people say that source of income come from bitcoin? so we need clear regulations on bitcoin
is there any legal solution ? is it possible to sue the bank ?
just deliver what the bank is asking
This issue of your cousin regarding his bank account’s transaction money that as freeze by the government certainly have been found something like an unusual activity in that account. The Singapore’s Bank will not just freeze a certain transaction if they not find it suspicious. But well, it can only be resolve by your cousin. She/he is the one that can make things settle down. He just needs to comply what the banks requires to make process your cousin’s transaction money. Moreover, if there is no illegal doing or issues involve then this will end up all right and fine.
Just be transparent, any information that may lead to your crypto assets should only be known to yourself and even the banks should not have it. If they want some information then ask them if they are mandated to do so by the government- let them show some papers that truly it has to be a regulation by the government. If you are not so sure on what to do, then ask for help, a public attorney should do.
Transparency is very important in the financial market. This is what the cryptocurrency market is all about. This has actually given rise to a more secure way of making transactions across the glob.The money is coded and could only be decoded by the recipient. Banks of course have to worry about their credit reserves as well and this is why before such big amount of transactions, they enquire about it. Even certain exchanges do the documentations.
Just be transparent, any information that may lead to your crypto assets should only be known to yourself and even the banks should not have it. If they want some information then ask them if they are mandated to do so by the government- let them show some papers that truly it has to be a regulation by the government. If you are not so sure on what to do, then ask for help, a public attorney should do.
Transparency is very important in the financial market. This is what the cryptocurrency market is all about. This has actually given rise to a more secure way of making transactions across the glob.The money is coded and could only be decoded by the recipient. Banks of course have to worry about their credit reserves as well and this is why before such big amount of transactions, they enquire about it. Even certain exchanges do the documentations.
Just be transparent, any information that may lead to your crypto assets should only be known to yourself and even the banks should not have it. If they want some information then ask them if they are mandated to do so by the government- let them show some papers that truly it has to be a regulation by the government. If you are not so sure on what to do, then ask for help, a public attorney should do.
Transparency is very important in the financial market. This is what the cryptocurrency market is all about. This has actually given rise to a more secure way of making transactions across the glob.The money is coded and could only be decoded by the recipient. Banks of course have to worry about their credit reserves as well and this is why before such big amount of transactions, they enquire about it. Even certain exchanges do the documentations.
my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?
I heard friend of my friend get that experience too. And it is because on his tx says withdraw from bitcoin. I glad never got that experience because maybe some banks not allow their user use bitcoin or maybe something kind of that. is there any legal solution ? is it possible to sue the bank ?
my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?
I heard friend of my friend get that experience too. And it is because on his tx says withdraw from bitcoin. I glad never got that experience because maybe some banks not allow their user use bitcoin or maybe something kind of that. is there any legal solution ? is it possible to sue the bank ?
thank you everyone for your responses, all advice's taken and will guide him accordingly.
if my cousin did bitcoin transaction without exchange to that person from Thailand then is there any sort of proof for that bitcoin transaction done with that person ? any sort of ledger or digital receipt perhaps that he can produce from that transaction so banks feels it genuine bitcoin transaction and not illegal money or money laundering.
my other concern is why do banks need to know how my cousin got those bitcoin and produce source of income for getting that bitcoin.
The problem is that you get a big amount of money which raised a question: why? how? I think your bank account don't has history of big money transactions. Banks don't know if your get money from bitcoin exchange or not but they want to know how you got this money, what was source of it because they think you are laundering money and not paying fees. Better to solve that problem with bank but be very carefully to not get that money lost. if my cousin did bitcoin transaction without exchange to that person from Thailand then is there any sort of proof for that bitcoin transaction done with that person ? any sort of ledger or digital receipt perhaps that he can produce from that transaction so banks feels it genuine bitcoin transaction and not illegal money or money laundering.
my other concern is why do banks need to know how my cousin got those bitcoin and produce source of income for getting that bitcoin.
Banks were regulated and working on certain terms so if you are doing huge transactions often then you won't be asked for any verification but sudden deposit of huge amount of money from international transaction will get you in trouble,you might choose the split trades or some other services other than bank transfers.But now you can only get your account back from your bank.
Even if you are making big transaction every time, you would be under the eyes of authority because they always correlate your income sources and the income you transact every time.So yeah, this could get you in trouble. Cryptocurrency has made it possible to send the money anonymously from one place to another without being noted by the authorities and that is the reason why many countries do not allow cryptocurrency because they know it might lead to a menace in future.
Obviously something suspicious has been flagged up, and as such the bank have frozen that transaction. It is likely that they are concerned regarding money laundering, which is why they are asking for your cousin to produce proof of his income and other such details. Unfortunately, this will likely all have been spelt out in the terms and conditions of the account your cousin signed up for - banks are generally well within their rights to do this. Your cousin's first step should be to contact the bank and try to ascertain exactly why the transaction was frozen, but if it was for suspected money laundering, then they will not unfreeze it until he complies with their requests for more information.
As an aside, this is why we need crypto - so someone faceless entity can't seize your money without repercussion.
Very well said. The OP cousin’s money transaction in his bank account will not be freeze like that if the bank didn’t find anything suspicious. More than that, the best thing that his cousin to do is make contact directly to the bank and settle this down. Well this will not happen if there is no certain policies that have been met. Policies of the bank, something like the money transactions met a certain amount, it will automatically been reported or just freeze for a certain amount of time and will just proceed to it, if the owner of the account will comply to the requirements of proof need for that money transaction. As an aside, this is why we need crypto - so someone faceless entity can't seize your money without repercussion.
there is a fact that this situation is contrary to the goals and objectives of Bitcoin, in short, its vision. Probably the money will be available again after the tax payments.
Backs are not decentralized and are not cryptocurrency exchanges that would not ask you for further proofs or income sources if you are transacting some big amount of money. This is just not possible. Every regulated body will do that because the transparency is important when it comes to money and banking system. You might not like banks due to this reason but it is one of the ways to prevent money laundering etc.Banks were regulated and working on certain terms so if you are doing huge transactions often then you won't be asked for any verification
Doing big transactions frequently also will trigger another levels of doubts and verification. I guess world wide with all banking system, we must need to clear all types of KYC on very first huge value transactions. But, these regulations will be hated by all the people which will lead to easy adoptions of cryptos. It means banks are working "perfect" for encouraging bitcoin adoptions. 
Banks were regulated and working on certain terms so if you are doing huge transactions often then you won't be asked for any verification but sudden deposit of huge amount of money from international transaction will get you in trouble,you might choose the split trades or some other services other than bank transfers.But now you can only get your account back from your bank.
my cousin sold his bitcoin to a guy in Thailand and that person made direct payment to my cousins bank account in Singapore from his Thailand bank but now the bank in Singapore is asking my cousin to produce his income source and has freeze that transaction money in his account. my concern is does the bank have that authority to stop my cousin from taking money out from his account and give such reason or excuses ?
is there any legal solution ? is it possible to sue the bank ?
is there any legal solution ? is it possible to sue the bank ?
Just like what other posters have said, maybe something raised an alarm to the banks regarding the deposits that's why they have frozen yes. As far as I know they have the right to do it if anything suspicious regarding the originator or the receiver.
But I guess if you cooperate with banks and give them all the details then you can get back your money. No need to sue them, it will just complicate things. Talk to them and show proof that it's not a illegal or dirty money.
Take for example, in my country, I can only receive 25000 dollars in my domiciliary account per day and anything that makes me receive any amount more than that, the accounts has already been programmed to freeze the account temporarily especially if it is not a business account, so I have to proof the source of income by providing sales document, invoices of goods purchase and so on but in this case of Bitcoin, I really don’t know if the bank will really recognize it since majority of them still frown at cryptocurrency.
Because they are obliged to respond to all suspicious transactions with money. On the one hand, it is terribly annoying that the state does not allow someone to dispose of their own funds. But on the other hand, various frauds with money can be committed with bad intent. Therefore, the Bank is simply obliged to react to prevent this.
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