Proving the origin of crypto: who can help?
By S.E. (Simcha) Schrijver, director of Paucitas
Paucitas is an independent expert firm in the Netherlands that investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.
In short: In the UK, your bank, HMRC, a conveyancing solicitor or your mortgage lender may ask for proof, but none of them will trace the origin of your crypto for you: the evidence has to come from you. Paucitas maps your transactions independently and records the origin in a report you can submit.
| Institution | What it does | What Paucitas adds |
|---|---|---|
| Your bank | Must carry out customer due diligence and monitor transactions (Money Laundering Regulations 2017) | A report showing the route from your crypto to your bank account |
| Financial Conduct Authority (FCA) | Supervises how banks and cryptoasset firms meet the anti-money laundering rules, and keeps the Financial Services Register | The FCA does not help you personally; Paucitas provides the evidence for your own file |
| National Crime Agency (UK Financial Intelligence Unit) | Receives suspicious activity reports from banks and professionals | A traceable file, so a question from your bank can be answered with facts |
| HMRC | Capital Gains Tax and Income Tax on crypto, record keeping, provider reporting since 2026 | A transaction overview per tax year in pounds sterling, as a basis for your adviser |
Your bank
UK banks fall under the Money Laundering Regulations 2017. They must carry out customer due diligence on their customers and keep an eye on transactions, and under the Proceeds of Crime Act 2002 the regulated sector has a duty to report suspicious activity to the National Crime Agency. So when a large amount from crypto comes in, it is normal for the bank to ask questions.
The bank does not trace the origin for you. It assesses what you provide. A single export from a platform is often not enough, because the bank wants to see the whole route: from the first purchase to the deposit into your account. See also what your bank wants to see about the origin of your crypto and which documents the bank needs.
Financial Conduct Authority (FCA)
The FCA supervises banks and cryptoasset businesses, including how they apply the anti-money laundering rules. The Financial Services Register shows which firms the FCA has authorised or registered, and the FCA Warning List shows firms it is concerned are operating without its permission. That can help show that you traded through a firm known to the regulator.
The FCA’s supervision is aimed at the firms themselves. So do not expect the FCA to review your file or to convince the bank on your behalf. If an old platform is not on the register, that says nothing about your own money. The register is a tool, not proof of origin.
National Crime Agency and the UK Financial Intelligence Unit
The UK Financial Intelligence Unit, part of the National Crime Agency, receives and analyses suspicious activity reports from banks, solicitors, accountants and estate agents. A suspicious activity report is not a crime report and not an accusation.
The government does not issue a statement on the origin of your money. There is no counter where you can get a stamp. You put the evidence together yourself, possibly with help from an independent party. You can read more about the Dutch counterpart of these rules in our glossary entry on the Wwft.
HMRC
According to HMRC, you may have to pay Capital Gains Tax when you sell, exchange, spend or give away cryptoassets. You must keep your own records of each transaction, in pounds sterling and with pooled costs, because exchange reports are not tax calculations.
From 1 January 2026, UK cryptoasset service providers must carry out due diligence on their customers and report customer details and a summary of transactions to HMRC under the Cryptoasset Reporting Framework. HMRC can place that data alongside your tax return. It does not establish the origin for you. For tax advice, consult a tax adviser. See also our overview on proving the origin of assets.
Where Paucitas fits
Paucitas is an independent expertise firm in the Netherlands, working for clients in the UK. We handle hundreds of cases a year. The order we recommend:
- Ask the bank, solicitor or mortgage lender exactly what information they want and for which date.
- Gather what you have: platform exports, wallet addresses, bank statements of your purchases.
- Have Paucitas investigate the route of your crypto and record it in a report.
- Submit the report to the party that asked for it. Take tax or legal questions to a tax adviser or your own solicitor.
An investigation takes from the same day to about two weeks. Every investigation is tailored, with a quote we go through with you in advance. You will find more background under proving the origin of assets.
What is in an origin report?
The report describes step by step where the money came from: the original purchase with pounds, the transfers between platforms and wallets, and the sale that led to the deposit. Each step includes the supporting evidence, such as transaction IDs and statements. Paucitas does not establish who holds an unknown address; we show how the money flowed.
The solicitor or mortgage lender is asking for it
Besides banks, the Money Laundering Regulations 2017 also cover independent legal professionals and estate agents. That is why a conveyancing solicitor or mortgage lender may also ask about the origin of your deposit. Read money from crypto in a property purchase and mortgage with crypto assets.
Beware of fake emails and texts about crypto
Scammers send emails and texts that appear to come from HMRC or another authority and ask you to log in through a link. The government’s Stop! Think Fraud campaign advises forwarding suspicious texts claiming to be from HMRC to 60599, and the National Cyber Security Centre asks you to forward suspicious emails to report@phishing.gov.uk.
Would you like to know what this means for your situation? Ring us on +31 20 244 5774, day or night, or fill in our contact form and you will hear from us within 1 to 3 hours. We answer emails within 24 hours, usually the same day. The intake is free and without obligation.
Frequently asked questions
Can the bank or the government trace the origin of my crypto for me?
No. The bank assesses what you provide and the government sets the rules. The evidence has to come from you. Paucitas can investigate the route of your crypto and record it in a report.
Why is the bank asking about the origin of my crypto?
Under the Money Laundering Regulations 2017, banks must carry out customer due diligence and monitor transactions. A large deposit from crypto stands out. That does not mean the bank suspects you of anything.
How long does an origin investigation take?
From the same day to about two weeks. It depends on the number of platforms, wallets and years. You receive a tailored quote in advance.
Does Paucitas also give tax advice?
No. Paucitas does not give tax or legal advice. Our report gives a factual overview you can use with your tax adviser or solicitor. Get in touch to discuss your situation.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. You can book that call by phone or through the contact form, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.