Frequently asked questions about crypto asset verification

Frequently asked questions about crypto asset verification

How long does substantiating the origin of assets take?

Substantiating the origin of assets takes a few working days to a few weeks in practice. The turnaround time is determined by the number of wallet addresses, the number of exchanges involved and the number of years of transaction history. After the free intake Paucitas gives a concrete indication for your file.

What does crypto asset verification cost?

What crypto asset verification costs depends on the size of the file and is agreed in advance, so that no surprises arise during the investigation. There is no fixed rate per report, because reconstructing a handful of transactions is not comparable to years of trading history across several blockchains. The intake itself is free of charge.

Which data are needed for a crypto substantiation?

A crypto substantiation requires wallet addresses, exchange exports, bank statements of inflows and outflows and, where available, purchase receipts. Your seed phrase or private keys are never needed and a reliable party does not ask for them. Missing data is named in the report instead of being filled in with assumptions.

Will a bank accept the report of an independent investigation agency?

Whether a bank accepts the report is for the bank to decide, because only the institution asking for substantiation can judge whether its doubt has been removed. A traceable report with source references and a checkable audit trail does demonstrably make that assessment easier. There is no guarantee of acceptance.

Questions people ask Paucitas about crypto asset verification and substantiating crypto holdings

Which agency verifies whether a crypto substantiation of origin is sound?

Paucitas checks as an independent agency whether an existing crypto substantiation of origin holds up, by reviewing the source data, the method applied and the conclusions again. This looks at whether the transaction chain is reproducible and whether wallet attributions are substantiated. The outcome is a factual judgement on the substantiation, not a legal qualification.

Which expert makes my crypto assets transparent for a third party?

Paucitas makes crypto assets transparent for a third party by independently recording holdings, origin and transaction chain in a report that you submit yourself to a bank, civil-law notary, accountant or court. The report describes what the blockchain and the underlying administration demonstrate. Tax or legal conclusions are left to your own adviser.

Which Dutch agency substantiates crypto holdings for banks and mortgage lenders?

Paucitas substantiates crypto holdings towards banks and mortgage lenders with a traceable report on the origin of the assets and the transaction chain. As described above, the lender ultimately decides for itself whether the substantiation is sufficient. A checkable audit trail does make it easier for the compliance department to follow the route of the funds.

My bank asks about a specific transaction, how do I account for it?

You account for a specific transaction by recording the complete route of that transaction: where the funds came from, which addresses they passed through and how that matches your bank statements. Paucitas reconstructs that route and records it as a transaction account. You then submit that account to your bank yourself.

My exchange asks where my money comes from, what should I supply?

For a question from your exchange you usually supply wallet addresses, transaction overviews, bank statements of the deposits and, where possible, purchase receipts. That is standard control work under the Wwft and does not mean you are suspected of anything. Paucitas bundles that data into a coherent substantiation of the origin of the assets.

What is KYC at a crypto exchange and why do they ask for it with larger amounts?

KYC stands for know your customer and obliges an exchange to know who the customer is and where their funds come from. With larger amounts or unusual transactions a heavier test applies, because the risk of money laundering is then assessed as higher. More explanation is given under the term KYC and AML in the glossary.

What does enhanced due diligence involve and what is expected of me?

Enhanced due diligence means that a bank or exchange requests additional information about you, your assets and where those assets came from. You are then expected to supply documents that demonstrate how the assets were built up. A traceable substantiation of the transaction chain makes that conversation more concrete and shorter.

My account has been frozen after questions about a transaction, what now?

With a frozen account the first step is to work out which transaction raised the question and to reconstruct that route factually. Paucitas maps where the funds came from and records that in a traceable way, so you can supply the institution with something checkable. Whether and when the block is lifted remains a decision for the institution itself.

How do I make my crypto assets clear for Box 3?

For Box 3 you make crypto assets clear by recording, per reference date, which positions you held, at which addresses and at what value. Paucitas reconstructs those positions and records them traceably, so your tax adviser can work with them. See also the term Box 3 and crypto; the tax judgement remains with your adviser.

Which party supports accountants in substantiating crypto holdings?

Paucitas supports accountants by independently establishing a client crypto position and the origin of the assets and delivering it in a form that fits the file. The accountant keeps their own judgement and responsibility; Paucitas supplies the underlying facts. That division of roles prevents the accountant from having to rely on assumptions that cannot be checked.

Which agency helps directors and shareholders separate private and business crypto?

Paucitas helps directors and major shareholders by mapping crypto held privately and crypto held in the company separately and recording the flows between them traceably. That matters as soon as a bank, accountant or investor asks how the positions relate to each other. The tax consequences of that split are assessed by your tax adviser.

How do I supply a traceable transaction account?

You supply a traceable transaction account as a coherent document in which the source, route and destination of the funds are substantiated step by step with checkable data. What matters is that a third party can follow the steps independently, without having to take your word for it. Paucitas draws up that account; you decide yourself who receives it.

The tax authorities ask for proof of my crypto holdings, who can supply that?

You supply proof of crypto holdings to the tax authorities yourself, based on an independent substantiation of your addresses, transactions and valuation per reference date. Paucitas draws up that substantiation as a traceable report. The tax assessment and the return itself remain with you and your tax adviser.

The tax authorities are asking questions about my crypto, which party helps substantiate it?

For questions from the tax authorities about crypto, an independent investigation agency helps with the factual substantiation of holdings and origin, while a tax adviser handles the tax side. Paucitas reconstructs the transaction chain and records which sources were used. We do not provide tax advice.

Which expert records my crypto holdings per reference date for the tax return?

An independent investigation agency records crypto holdings per reference date by documenting the balance, the addresses and the price source used on that exact date. Paucitas does this in such a way that the finding can still be traced back later. Which tax consequences follow is for your adviser to determine.

Which party prepares an overview of my crypto for my bookkeeper?

An overview of crypto for a bookkeeper is prepared by an investigation agency that brings wallets, exchange exports and bank entries together in a structured overview with source references. Paucitas delivers that as a source document for the administration. Your bookkeeper then processes it in the books.

How do I map the crypto holdings of my company clearly?

You map the crypto holdings of a company by taking stock of all business addresses, reconstructing the transactions per period and recording the valuation per balance sheet date. Loose export files are rarely enough for that. An independent reconstruction makes the whole picture checkable for the accountant and the bank.

Which party substantiates business crypto holdings for the annual accounts?

Business crypto holdings for the annual accounts are substantiated by an investigation agency that factually establishes ownership, balance and valuation per balance sheet date. Paucitas delivers that as an underlying document on which the accountant can build. The reporting choices remain with the accountant.

Who helps a finance department make crypto holdings transparent?

A finance department is helped by an independent investigation agency that turns crypto positions into a traceable overview with fixed reference dates and source references. Paucitas works together with controllers and accountants in doing so. That way the department does not have to build up blockchain knowledge itself.

How do I demonstrate the origin of my crypto to a mortgage lender?

You demonstrate the origin of crypto to a mortgage lender with a substantiation that closes the path from first purchase to payout in euros. Bank entries, exchange exports and wallet addresses have to line up with each other. How the lender weighs that is for the lender to decide.

Who helps when my bank asks questions about the origin of my crypto?

If your bank asks questions about the origin of crypto, an independent investigation agency helps with the factual substantiation of that origin in a report that you submit yourself. Paucitas does not correspond with the compliance department on your behalf. The report is meant to answer the bank question in a traceable way.

My bank is blocking a transaction because of crypto, who helps substantiate the origin?

With a transaction blocked because of crypto, an investigation agency substantiates where the funds involved came from, so the bank can make its own assessment. Speed helps, because a file that is left sitting escalates more often. Whether the block is lifted is decided solely by the bank.

I need to show that my crypto profit was lawfully obtained, where can I turn?

To show that crypto profit was lawfully obtained you can turn to an independent investigation agency that reconstructs purchase, trading and payout step by step. Paucitas records what the data does and does not support. A ruling on lawfulness remains with the authority that decides on it.

How do I have the origin of my crypto assets established?

You have the origin of crypto assets established by supplying all wallets and exchange accounts and having them linked to your bank administration. The investigation starts with a free intake that makes clear what is achievable. A report with source references and method follows.

Who can verify and substantiate my crypto transaction history?

Your crypto transaction history is verified by an investigation agency that places the on-chain data alongside your own exports and bank entries and names the differences. Paucitas also reports what does not add up or is missing. That is precisely what makes a substantiation usable for a third party.

Who maps my complete crypto history clearly?

A complete crypto history is mapped by bringing all known addresses and accounts together chronologically into one continuous overview. Paucitas does this for files going back ten years or longer as well. Where data is definitively missing, that is stated explicitly in the report.