The notary is asking where my money from crypto comes from, what exactly does he expect?

What does your solicitor expect with money from crypto?

You are buying a home and part of the money comes from crypto. Then your solicitor or conveyancer asks where that money comes from, sometimes shortly before completion. It can feel like distrust, but it is a standard step whenever a large sum is brought into a purchase.

Your solicitor is not judging whether you invested wisely. They want to see a trail from the amount on the table back to the pounds you once bought crypto with. Under the Money Laundering Regulations 2017, firms must carry out customer due diligence under regulation 28, including the source of funds where necessary, and enhanced due diligence under regulation 33 where the risk is higher.

Does it make you nervous that they keep asking? That is understandable. Usually there is a good explanation that just needs to be put on paper properly.

Which documents show where the money came from?

It usually comes down to a combination of bank statements for the first deposits, exchange statements, the history of your own wallets, the transfers in between, the payout into your account and an explanation of the growth in value. Together they form an asset verification.

Exactly what is needed differs per situation. Sometimes a few documents are enough. Sometimes the one document that connects the rest is missing. You do not always see that yourself, because each statement is correct on its own. What a bank usually asks for overlaps a great deal; see documents your bank needs for money from crypto.

Would you rather be certain now? Let Paucitas look at your documents before your solicitor asks more. Get in touch or call +31 20 244 5774.

When does your trail hold up?

A trail holds up when every transition between bank account, exchange and wallet can be followed and the amounts on both sides match. The weak spot is almost always in those transitions. If you bought on one exchange, sent it to your own wallet and sold on another, you have three statements that are each correct, but not yet one trail.

Has an exchange gone? That is rarely the end of the story. Transactions on the blockchain stay public, and often more can be shown than you think. Property is a sector where firms look harder at money laundering risk, which explains why crypto used for a home purchase raises extra questions.

An example from practice

A buyer was putting part of the purchase price in from crypto built up over four years. Three weeks before completion the solicitor asked for evidence. The buyer had statements from three exchanges, but the solicitor could not connect them.

The reconstruction linked the withdrawals at the first exchange, through the buyer’s own wallet, to the deposits at the second and third. Within a week the solicitor had one continuous trail, and completion could go ahead.

Paucitas takes privacy very seriously and never shares personal details of clients. This is a composite example: names, amounts and details have been changed. The situation is one we see in practice.

What if completion is already close?

If the completion date slips, you will naturally want to move on quickly. An investigation takes from the same day to about two weeks, depending on the case. So ideally start as soon as you have an accepted offer, not only when your solicitor asks. Even when time is tight, it is worth calling first.

What Paucitas does for you

Paucitas works everything out: the transactions, the route of the money from your first purchase to the payout, the exchanges and wallets, the documents and the timeline. Paucitas also reads through the relevant documents, emails and other communication, for example with exchanges, so you get a complete picture of where all the money came from and where it went, step by step. Paucitas does all tracing itself, without tracing tools. You receive one report that anyone can follow and understand step by step, including your solicitor, instead of a folder of loose statements. What cannot be established is stated honestly.

• What you can provide: whatever you have, such as bank statements, exchange statements and wallet addresses. Never your recovery phrase.
• Costs: every investigation is tailored. You receive a custom quote in advance that we go through together, with no surprises.
• Turnaround: from the same day to about two weeks.

Paucitas does not give tax advice; your solicitor and your adviser remain the final step. How we support firms is on for banks, notaries and compliance. Buying with a mortgage? Also read a mortgage with crypto. What a bank wants to see is in origin of crypto: what your bank wants to see.

Sources: legislation.gov.uk, Money Laundering Regulations 2017, regulation 28; legislation.gov.uk, Money Laundering Regulations 2017, regulation 33.