Bitcoin Forum

Hi everybody, I have a serious question to address:

How will you tell (or reveal) to your Bank that the huge daily (or weekly) deposits into your Bank Account are from crypto-currency profits?
- Would you go to your local Bank Branch and tell them ahead of time, that you are a crypto-currency investor BEFORE you make huge deposits?
- Would you go to your local Bank Branch and tell them that you are a crypto-currency investor AFTER you make huge deposits?

This question is important, especially for people of modest income that SUDDENLY start to make huge profits from crypto-currency.

EDIT: I would love to pop into my Local Bank branch (in the United Kingdom) to tell them that I am into crypto, but I am a local person in the area - I do not want to attract attention to myself (or to attract potential thieves), because we do not really know who these Bank staff really are, or if they have connections to the criminal underworld.
I do not want to turn myself into a local target.

EDIT 2: The reason why I was suggesting contacting the bank first, before making serious deposits (single large deposits or frequent small deposits), is because some banks just call the police (without contacting you first), when they notice strange transactions in your account.
When a bank calls the police on their customers, this automatically gives the police the permission to issue a "search warrant" on your living premises.
This means unwanted visits from the police, who have authority to scuffle through your possessions and seize all of your electronic communication equipment.
While doing this, they now have the opportunity to search your home for anything else that they think is wrong, or to issue trumped up charges against their victims.

The real reason why I want to contact my bank before I make any serious deposits from crypto profits, is to avoid the possibility of unwanted police visits or investigations. Police love to confiscate electronics (computers phones), which could prevent you from accessing any market while the electronics are in police custody.

EDIT 3: I am not scared of paying high taxes. I just want to cash out honestly, without being worried of the unpredictable and punitive behavior of the Authorities, who always criticize or attempt to make accusations "on suspicion" of wrongdoing.
I want to pay the correct tax, and get over and done with this issue. I do not want the Authorities chasing me around for unpaid taxes later in life.

Interest Ask. I don’t think that the bank’s employees will be interested in the sources of your potential profit until you replenish your bank account with a huge amount. Indeed, it’s very difficult to prove that the profit you received as a result of doing cryptocurrency. Therefore, it will be better to make your profit in different banks and in small amounts.
In my country, the tax on profit from cryptocurrency has not yet been introduced, so I can deposit large amounts to the bank, explaining the source of profit from working with cryptocurrency.

You did not mention if Crypto is legal or not in your country but if you have already a bank account therefore the bank will not ask where did you get your money anymore because during the opening of your account you will need to provide the details of source of your fund before approval but if they have information policies regarding over the limit of withdrawals and deposits then you will just tell them the truth.

This is a case to case basis IF bitcoin is legal in your local place and some banks are accepted on it then, there is no problem on telling them the truth. There are some banks adopt cryptocurrency and accept even the money you have deposited is come from cryptocurrency profit but there are some others are very strict because they are relying upon the local jurisdiction that it is possible your money come from laundering.

Observe first an ask information before you deposit, there are instances that might your money being froze/hold by them and even you are going to cash out you can't.

There might be some issues experienced by cryptocurrency investors. Most of the large volume investors will have business accounts, and these accounts have got large volume transaction access. This way there is no need of providing any statement to the banks that the fund is from cryptocurrency investment.

Once I encountered an issue as I was using a savings bank account. It has got low limits, and the bank authorities personally had an enquiry. I didn't informed them it was from cryptocurrency investment, I informed this was transferred by my friend and finally the amount got released. Until then it was under hold.

When my friend made his savings account on the bank, the question is somewhat close to this.

"How do you get your profits from this cryptocurrencies?"

I just told him one word, Trading. The exchange that we are using to transfer can be limited depending on the account level that you have. For example, you are level 2, the maximum amount you can send to banks is 35,000 pesos or just close to $673 a month. No other questions are asked about cashing out but the next questions are like, "How do we earn Bitcoin?", "Who made it?", "Can they earn the same Bitcoin as my friend?". we did not answer all of those questions, we just nodded and smiled.

If you suddenly start to make or receive huge deposits, no matter if they origin from cryptocurrencies or not, every bank will be a bit suspicious and they will ask some questions. But everything depends on the country and regulations.
Personally I don't think this is very smart idea. If you want to have such deposits in bank you rather open multiple accounts in few banks so at each account split some amount of money. That shouldn't be a problem for banks.

In some countries it might not go unnoticed and might be questioned, in cases of countries with such scrutiny one can make a staggered deposit with different bank accounts. Some countries demands all account linked to each other and monitored by central bank which it even severe, I will also save some of the profit into crypto stable coin .

You have the option, to choose the right bank which accepts Cryptocurrency profits, there are some banks that agree to deposit your money coming from Cryptocurrency, your job is to trace them and you can start by asking them, you would not want to be late in knowing that they don't accept it and you already deposited a huge amount.

My approach will be different. As much as possible, if there's another way to cash out those huge profits, I will try my best not to be involved in banks. Although our country is crypto-friendly, huge money transferred to any bank accounts even not acquired via crypto, is alarming to those banks and will subject automatically into questioning. So much hassle if you will tell then anything your crypto activity to the point that every transaction should be detailed including the private transaction.

Fortunately, there's another way available in my country to cashout those high figures although I can't do it on a single withdrawal and will take at least over a week depending on how much the amount involved. I can also do it via bank withdrawal as small withdrawals are not flagged.  However, as I mentioned, I don't want to be involved in banks especially at huge cashouts.

As long as your country are support cryptocurrency I don't see any problem to tell them a truth that your income even huge or not is from cryptocurrency. But if you think it risky to tell them you just need other income that they cannot survey so you will be safe like business or anything. For sure deposting huge amount is needed to know where does your income came from but it's up to you if you tell truth or say something other.

If you trade legally with cryptocurrency and you have done KYC on crypto exchange then any bank will not cause problems to you. They are mostly interested that money is not coming from illegal sources, and if you have proof that this is not the case why they would refuse your money?

You can not hide anything from bank, so to avoid possible problems it is better to go in bank and see what their attitudes are, do you need to provide any extra documents which can prove from where is money coming. It would be stupid that you just suddenly receive a large amount of money on your account, any bank who follow AML need to check such money transfers, and that means possible freezing of account.

The bank only makes an inquiry when they find suspicious/strange transactions in your account with huge amounts involved and then you need to answer them while when you pay taxes, you need to mention it as per your CA's advise. Every country differs in laws and regulations when it comes to crypto so they have a different process. If you use exchanges that have ties with the bank, you wouldn't even need to bother as they know the source is crypto.

But cryptocurrency is not a source of income it is a currency which can be exchanged for fiat. So if you were to make a very huge transaction on an account that has not gotten such an amount before (in cryptocurrency or otherwise), your bank would definitely be interested in knowing the exact source of that income.

  This is really a question that is very difficult to answer. Especially in some countries, it is not allowed to use crypto. I have never had a transaction so big so I do not know what to do if encountering such a situation. But in my opinion, I would split that money up and deposit it into different accounts

I disagree somewhat.  Back when Circle was in the business of selling bitcoin, I'd made a number of small buys using my checking account, and the next time I visited my bank's main branch I got questioned by the bank manager--not joking.  She asked me what all those transactions were about, and it wasn't like there was a lot of money involved, nor did those transactions represent profits or anything like that.  Banks are very concerned about what you're using their services for, so I would suspect that if you suddenly started depositing lots of money into your account, it would raise a flag with them (depending on the bank, of course; I use a small, local bank).

On the other hand, if you're paying taxes on your profits then the bank can question you all they like and it won't matter much.  Even then, that's not really their business.  But I would certainly expect some scrutiny if you start making "abnormal" transactions.  I even got questioned by that same bank manager about a stock sale check I deposited that was a lot more than I usually deposit.  It's crazy.  You think your money is your own, to do with whatever you like, but they're watching.  Believe me.

Let's tackle it one by one.
First of all if I am making profits (or just happen to buy bitcoin at 1 dollar and now have thousands of it, doesn't matter, same logic) and want to put it on my bank account I just divide it into days, I don't put all my money into bank account all in one day, just put it in there everyday small by small and that will eventually become big.

What my country does is that they check the transactions not the accounts itself, they don't ask people "why do you have so much money in your account", no they ask "where does this big sum comes from" which means as long as its small amounts you can get bigger with time.

No, I do not let my bank know about it, they don't need to know and even if they do they have nothing to do about it. Yet again, I wouldn't let them know, useless.

No need to explain anything to your bank unless your are cashing out in millions in fiat every day or in week,I don't think people converting their crypto into fiat in millions are rare to find.

But you have the options for your source of money as well in website like localbitcoin and other site also might have it which can be used while you are filing your income tax.

I understand this because it might look suspicious that the holder of the account is into in bad business like fraud, rubbery etc but the solution is to start to transfer money to the account gradually and with time bigger amount can be transferred to the account. With this way, it won't be an issue but if large some enters at once, questions will be asked.

I understand your point, which is very practical, but sometimes it may not be feasible to transfer small amounts slowly.
This is because the crypto market is very volatile, crypto-exchanges might have sudden cash flow issues that prevent withdrawals over a period of time.

I would love to pop into my Local Bank branch (in the United Kingdom) to tell them that I am into crypto, but I am a local person in the area - I do not want to attract attention to myself (or to attract potential thieves), because we do not really know who these Bank staff really are, or if they have connections to the criminal underworld.
I do not want to turn myself into a local target.

If you do already have a bank account before into those crypto profits being credited on then suddenly the amounts goes higher as usual then it really trigger up some alarm to the bank.Sooner or later you would really be asked on where those funds came from and you should really be ready on what would be your reason specially if your country does have negative insights towards crypto.If not then you can simply give them the reason and I don't believe that you would really be prone to some thieves internally but who knows-its better to be safe that sorry.

On my case,im still using up my bank just fine even the amounts deposited is bloated up.So far, I haven't been contacted by them which means I'm doing pretty good this time specially they are opposing crypto earnings.Just be wise not to sent or cash out by bulks to make yourself less obvious.

For the Dutch users I will advise bitonic. Used that a lot and it's easy to directly to your bank account.

I don't think bank will believe you that your money got from crypto and also in my country bank doesn't allow any investment from crypto,they will make an invistagation regarding your money because of anti money laundering law.

why the heck will you be afraid to their staff when that is their jobs to ask about this matter ? they are professional and they are only doing thier job . if they have criminal records then they shouldnt be working thier in the first place because they will be blacklisted by the time they apply  . there are also banks right now that are crypto friendly  . they support crypto deposits and any other income sources related to crypto , you should check them out compare to regular banks that doesnt support crypto if you are still doubting about your current bank  .

We should not withdraw bitcoin in cash in a massive amount because that will give the alarm to the banks, and they will investigate our account. They will ask about where we get huge money.
But if they ask me, I will tell them that I do an online business which buying and selling many things and then I can send the money to my bank account.
You can withdraw some money to cover your daily needs and send more money again in the middle of the month, and if they ask you about the money, you can tell them like what I told you.
I think that will make one of them suspicious and will search more about that and they will ask you to explain more details.
That happens to one of my friends.
Bank officers came to my friend's house, asked about the money transferring from his account to another account which is not have correlated at all.
But my friend can explain to details, and the bank officers believe that my friend doesn't use his account for any illegal things.

Do you have such a huge amount to withdraw daily or weekly from crypto? Wow! Just be ready if you will deposit them consistently on your bank account because they will probably ask you some questions regarding the funds.

Answering your question how, personally, I'd only tell them when they ask me and will tell the truth. There will be no problem as long as you got the funds legally.

In regards to attracting attention, remember that it's not only you who uses the bank and there are definitely other people who deposit lower, same, higher amount of funds in their account.

Keep silent until they have to ask you. You don't need to inform them because when creating a bank card, they don't know what your current job is, so it's normal for you to have a good business year. They will not notice the large amount of money you send to the bank, they are only happier when you deposit more and more money into the bank for them.

I personally will not go to a local bank branch just to let them know if I am a cryptocurrency investor or even tell them if I earn income from cryptocurrency, because I am sure there will be a time when cryptocurrency users will be known and recorded at the local bank, because our identity has been registered at a local exchange where our identity might have been known by the bank if we were a cryptocurrency user. So that way, why would we tell a local bank if we are still using small money to invest, and even though you are a big investor I'm not sure it should be done.

I'm prefer not to tell them until Bank Staff asking about that.
I don't know they will understand my explaination or not.
There is a limit for customer should report to Finance Authority.
Currently I'm still under the limit, only the transaction frequency rose, not the amount, maybe they looking about this but not asking me because under the limit.

Not exactly as crypto sometimes is also considered as income from other sources. Banks may not be interested in asking such questions unless they have a negative attitude towards crypto or you are using a trusted exchanges. Big amounts would come under their radar but many times customers were not asked questions when they were active traders. When it comes to cashing out profit, you must be even depositing fiat so the source is known. Also, if you pay taxes, you don't even need to answer the bank.

Although I have diddly squat right now I did go into see my local bank manager back in the day when things were booming. All she said to me was that in Cyprus they class crypto and trading as securities, so no tax on them right now so as long as I made back to back bank transfer or SEPA it would be o.k to bring in large amounts of cash and no one would bat an eyelid. I could not though say try to send Bitcoin directly to the bank, that wouldn't be allowed. It's nice to know my country is not against crypto but the central bank has some regulations in place, so you would still have to use banks as intermediaries to bring the money over. I think because my country is small they are laxer but also because we are in the EUROZONE, KYC AND AML are getting more and more strict now so I support this might change in the near future. One could also open a corporation here and then pay 10% net corporation tax on profits.

Yeah your right mate...coz' if you are creating and opening an account and save your funds at the bank, there is no any questions that where your money came from. They're all know what their rules and policies.. Just to protect your privacy.

I would never tell my bank that I trade cryptocurrencies.I'm not that stupid. ;D
I advise anyone to be aware and don't do such stupid mistake.In my country,the banks are still kinda neutral towards crypto,but that doesn't mean that they won't become anti-crypto really fast.
If you don't want your bank account to get frozen in one sunny day,just don't do this.

I support this and have been avoiding banks for over 2 years. They usually put your account under review when they find out you're involved in crypto trading. If the money is small they won't bother to check your incoming deposits, but there are 2 easy ways to get flagged. One is to have a lot of money coming in, and the other is to tell them yourself. I had a bank email me about my activity and tell me that they don't want anything to do with cryptocurrency.

You can use a direct ATM withdrawal, set up an account in a crypto friendly country, like Germany, Belarus, Estonia, Malta (I'm actually trading this way), or you can convert into different vouchers like amazon gift cards, charge your phone, use revolut...

Cashing out your cryptocurrency become cash money is not good ideas because better hold and save your money become bitcoin or altcoin assets than you have keep holding using money.

I think the bank can get a written note on that. The person can communicate that to that bank even before the money goes to the account to ensure that, there is approval for the transaction. I think that is one way to do such before the account will be labelled and under suspect.

Why not just telling the truth? I have been asked where you get your money and for who you work ? and im just telling them I'm starting a 'Bitcoin' crypto business and they look so confused and im telling them im miner and do trading bitcoin also and they have no idea what im talking about. what I think is maybe they consider me to be trading the stock market.

I have been concerned about crypto profits. When I started looking into in after my first year in crypto, the advice I got was that it's not just crypto-to-fiat that is taxable, and crypto-to-crypto trade is also taxable. Of course everyone is free to go with their own judgement as the law isn't particularly clear, but I went safety first and paid tax. Needless to say I've been doing a lot less trading since then.

I don't think you'd make yourself a target unless you are cashing out a huge amount. For me the sums aren't that big.

I was literally unemployed and living so frugally that I literally had no money to buy dinner materials one day, I was that much down in my economics for a while and it did hurt my psychology a lot and even after I got some money I still lived frugally in case something bad would happen. However when I started to realize my bitcoins that worth maaaaybe 1000 dollars at the time started to worth like 50-60 thousand dollars total I cashed it out, all of it without a single satoshi left.

I am one of the few lucky people who sold at 20k and that was awesome, however bank didn't asked me anything about it, I just cashed it out 1 bitcoin each and they just let me be, I guess you have to be over some threshold to get in the radar of government or banks, there are millionaires making million dollar moves every single day, your 5k-10k-20k move wouldn't raise any flags.

It is a relative issue, to several country, for me I tell my bank am a real estate personall, with that they do not question the amount that come into my account,  My country is a developing nation that do not check into details of individual . But for a country like UK, where all citizen are monitor, to play safe inform the appropriate sector ahead, to avoid being charge.

It seems like this scenario is very similar to what happened to me on 2017. I was too confident because my local bank knew about crypto and even recognized by the central bank and I never expected that I was going to be questioned even with the most private part of my crypto transactions. I was then forced to tell them lies like I was trading for commodities, forex, and crypto currency 😂.

As for the OP, its better to tell your local banks about the huge deposits your making now and in the future to avoid any suspension/hold when your making withdrawals.

The best way is to always to tell them before you make a deposit because you don't know if the bank is crypto-friendly or not because you might end up having your bank account frozen or cancelled. That is what happens in some of my fellow traders that deposited in some of our local banks that do not like crypto very much and some of us crypto traders have to lie like we are earning in freelancing and never mentioned about bitcoin or anything crypto-related.

If you are looking to sell your crypto then you should use a spare bank account and sell bitcoins in smaller fractions, not all at once. If you have a bigger transaction volume you will attract attention of the law. Make sure you follow local regulation about crypto before transacting in it.

Take a look here - https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory#United_Kingdom

You could also use localbitcoins for a P2P trade if you find a seller in your country. Using the currency exchange section of this forum is also possible but that section is filled with lurking scammers. So use an escrow to trade here. Do not send your money first to anybody.

No banks will deny the deposit into their bank so they are going to approve your transaction but later might freeze your account if they found anything suspicious on the recent transactions so asking before won't change anything.

Since you don't want to attract attention I think it would be better to keep quiet about it,
Just tell them about it when they need to know but as long as they don't ask about it and it is not illegal in your country then just keep a low profile and for sure they wouldn't mind it at all.
Just show them how you earn it and it is a clean profit not something that came out of dirty business.

I think it's very unnecessary for a bank employee to ask their customers about those kind of information. They don't have to ask it, am I right? They wouldn't care where you get that money... Imagine working in a bank, and it's normal for them to encounter big deposits and I bet they're already used to it. If they would also asked you, it's still up to you whether to answer and disclose that information or not.

But for me, it's fine to tell them where you'd get them, as long it's legal in your country then you don't have to worry. It's not like they can do something about your money.

It's better to stay under the radar, so they don't get suspicious with your bank account. They can track you if you are trying to withdraw in huge money and they will find out how you can get that money. But they will not ask openly, and they will do it secretly while you will not realize at all. We need to protect ourselves from any bad thing that could happen, and we should not tell others about any coins we have. Maybe at the right time, they will ask you about cryptocurrency, and you need to explain the details, so they don't get suspicious.

I won't actually say anything as long as they don't ask me anything .
You should use the accounts of your family members too , do one thing ... If the Highest possible balance gets divided then I don't think anyone will ask anything from you unless they are specifically targeting you.
Don't tell them anything..
Try and divide it in all your accounts and manage them thoroughly.

Do you really have so much profit from cryptocurrencies that you are considering to tell banks about that in order to get rid of unwanted doubts?
Well, I think you have to contact bank, not to introduce real you but call just like a random guy and ask them these questions, if you have to pay taxes for serious crypto income. If you are free from it, then just do deposits and if they have some doubts, explain them your situation, source of your income, that you are 100% transparent and don't hide anything (I mean illegal activities). Otherwise don't know what to suggest, I think this is good deal here. Make a phone call at first and ask any question you wish.

I agree with you that bank employees can be anyone. In my country, there have been many cases when it was the employees of these institutions who turned out to be scammers and received other people's money by deception. Therefore, it would be nice to think about this issue and take care of the safety of your funds.

The reason why I was suggesting contacting the bank first, before making serous deposits (single large deposits or frequent small deposits), is because some banks just call the police (without contacting you first), when they notice strange transactions in your account.
When a bank calls the police on their customers, this automatically gives the police the permission to issue a "search warrant" on your living premises.
This means unwanted visits from the police, who have authority to scuffle through your possessions and seize all of your electronic communication equipment.
While doing this, they now have the opportunity to search your home for anything else that they think is wrong, or to issue trumped up charges against their victims.

The real reason why I want to contact my bank before I make any serious deposits from crypto profits, is to avoid the possibility of unwanted police visits or investigations. Police love to confiscate electronics (computers phones), which could prevent you from accessing any market while the electronics are in police custody.

No way will I mention my crypto profits in the banks. That will only increase the suspicion rather than end it. There are so many other ways to manage or even justify your bank account's balance other than divulging to them your crypto involvement. One way is to keep the deposits and withdrawals in moderate amounts and with long enough intervals so as not to rise suspicion from them. Other way would be not to pass through the banks when doing withdrawals. You could use payment centers instead.

Keeping deposits in moderate amount is what I am not really sure will work for some people because we have some people that are talking in millions of dollars, I am sure whales are talking in millions of dollars and there is no whale that will keep their money in cryptocurrency wallet when they have finished manipulating the market, majority of those people that have big cash to manipulate the market still pull the money to their bank account and bank does not disturb them.

I think the best way not to get bank to disturb someone is just for one to operate a business account, with a business account, one can have access to certain amount of money that will be enough not to raise suspicion, and moreover, I think most banks now knows cryptocurrency, and if the person proofs that it is from trading, I don't think it should be a problem.

The problem with the business account is tax,we have to pay the taxes for all our crypto currency earnings if we report them as crypto profits but most people don't want to do that which is the reason they want to hide from banks.But when someone got lot of business other than cryptos then there will be no problem for them to cashout via business account.

Actually they will know the assets that we had since we use an exchange who regulated by government. Most of them will ask KYC to make an account which is mean they will know what we have for sure. Otherwise if use decentralized exchange or even a hardware wallet maybe it will be difficult to track our asset and it will keep our identities secretly. Since my government has been accepting cryptocurrency and they including it as a commodity I make a deposit or withdraw cryptocurrency to money fiat transparently. I just thought these thing should be done by me and I won't make everything can be seen by government, as a form of gratitude because they have received cryptocurrency well and maybe what I have done in return for them.

I do KYC myself.
I do not intend to hide my crypto earnings from the Government - I want them to be aware of everything.

The problem I have is that in the process of being honest and open, you attract criticism of these Authorities (Banks, Government) who assume that the money might have come from illegal activity or money laundering.
They are right to attempt to investigate unusual income, but sometimes they might overdo it, with Frozen Bank Accounts, Search Warrants by Police etc, that puts the innocent investor in a vulnerable position, almost being treated like a criminal.

Common reason why people doesn't really like to comply KYC or do show off their identities when they go involved of crypto due to these various reasons.
We do have the same behavior on showing off or whats being needed as long you do know that you haven't involved into something illegal but as you said those
possibilities can happen really into you which in result with headaches later on or the worst you would got imprisoned depending on how you defend yourself.

usually I will make a withdrawal to cash from the profits I get when I really need money, if I don't need money then I prefer to keep my money in the exchange and I use it for trading so I can get more profit.

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.

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! 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 ;D. 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.

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.

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.

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.

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.

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.

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.

 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.

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?

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.

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.

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.

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

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.

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

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.

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 .

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 think it varies from country to country since other banks are skeptical when you report that your money comes from cryptocurrency. But it is better to give the banks a heads up before deposting any huge amount to your bank, because banks can freeze money that they think is suspicious and cryptofunds can be sometimes be suspicious in banks point of view. You should weigh the situation and existing policy or law in your country, before planning on depositing crypto money in your local bank, just to be safe.

If in the UK there are too many strict laws about crypto and its business, I think you should not provide any information about it at all. You can withdraw money from crypto-fiat liquidity exchanges and then use the money to buy gold or stocks. Don't deposit at the bank too much because suddenly you have a lot of money again, the police will come in and investigate what you are doing and have a lot of money. If they detect you trading crypto, I'm afraid you will be subject to very high taxes.

In my country a lot of questions asked if the money are came from your work or business. If telling that money are from cryptocurrency they will instantly declined such request to deposit or cashout.  This is to avoid money laundering issues. Before making such large of amount to deposits might as well provide necessary documents except on cryptocurrency to avoid investigation.

That is what you need to do to stay away from the alert from the exchange. As long as you withdraw in a small amount, I think they will not become suspicious, and they will not check your account. That will be a safe way to prevent something that can happen in the future. But you should not keep your money in the exchanges, especially for the big amount of money. Always withdraw your profit first and leave some amount to continue trading so you can make a profit more and more.

In bitcoin crash in The Last year, i cashed out my money buying a franchise and few terrains, All of this cashing out directly to the sellers Account :)

Until now im safe :)

I Live in Brazil. Is not safe let our money in The Banks, and not safe to let This in my house.

In 1994 All people Who had investment lost money, confiscated by governament. The situation now is nothing good, and This can get place again.

I have to send the money to a local exchange anyway, which requires verification and so far has never had any problem. I don't know how much the bank knows about my exchange account but I'm assuming they already know it involves crypto.

I don't have to do any "tell them first", I just send in the money via exchange and wait for it to reflect on my bank account.

Also  to add, keeping your assets inside exchange should be avoided there's always possibilities that the site will be hack if you can have offline wallet to store your assets it's highly observe. Protecting your money and to avoid any delays from exchange once they suspected your account, you need to learn more info  about how to prevent losing your investment and how to secure your money.

Security is very important in the world of cryptocurrency. Since it is pure digital or online, you need to be very careful in taking care of your assets. I agree that you should have an offline wallet like a hardware wallet or paper wallet (not recommended) where you can store your cryptocurrencies and you don't need to worry anymore about getting hacked.

I am not scared of paying high taxes. I just want to cash out honestly, without being worried of the unpredictable and punitive behavior of the Authorities, who always criticize or attempt to accuse somebody on "suspicion" of wrongdoing.
I want to pay the correct tax, and get over and done with this issue. I do not want the Authorities chasing me around for unpaid taxes later in life.

When money gets deposited from your local exchange means it will be directly reported to your government since most exchanges were regulated by the respective governments so all you need to do is pay the right taxes.No need to let the banks to know before depositing any money in a regulated country.

I dout that bank will contact police, it will contact your tax institution.
I would recommend to ask the same institution how you should pay the income tax correctly and if you are afraid after that, then just divide in smaller amounts.

Watch this youtube video:
Freezing, Account Closed: Bank of England Targeting Electronic Money Owners - Bitcoin News
https://www.youtube.com/watch?v=PG4etVLuf0U&list=LLmBAtm4HQPSIxnnQWXK36Xg&index=5&t=114s

The best way to cash out your cryptocurrency profits is using a Bitcoin ATM. You can get cash and some of them do not require to provide identification. However, I do not know why you would want to cash out Bitcoin. You should hold!!

The Banks and government are like a Dog just give them bone... Lol   :D


If they ask give them some nice Information never mind If its not even Logical, regular bank stuff have no ideas about reality at all.

Tried cashing out my bitcoin using bitcoin ATM, It's quite easy than I think. But I never use it again after that because bitcoin atm in our country were shut downed and it is very far from my residence.

Everyone of us has a reason why we need to cash out our bitcoin depending on the circumstances.

U sell ur Cryptocurrency and buyer will send you cash, simple!  If its your personal bank account and ammount is not huge then bank dont ask anything!!

Not all country has bitcoin ATM. Maybe the country that he is living in is strict when it comes to cryptocurrency earning. The best thing to do is to consult it with bank first if they accept earning from cryptocurrency to be deposited or transacted thru them.

You can open up and seek some consultation or advise but it isn't really that necessary if you do plan to cash out thru bank
unless if we do talk big amounts on here but if you are just cashing out some few amounts then its just okay to proceed yet it wont trigger up the alarm
specially if you are on a country which do have nearly negative views towards bitcoins and other crypto profits.
Its hard but you wont have any options and also you can do p2p but its somewhat risky.

In most cases i don't really think that depositing a moderate amount of money is going to be of any trouble, unless you are not being smart about how you deposit like you come in to the bank and drop a case of millions of dollars of course they will have many question and how you got the money, but if you like deposit 10k every couple of moths i don't believe that is an issue, and you should not tell them beforehand because that will lead to complications and you may end up paying high taxes, but to be honost this all comes down to the country that you live in and how the law handles these kind of cases.

Great question! Personally, i'd cash it out in small quantities over an extended period of time, as this seems to be the SAFEST route to take. It will depend on your total crypto portfolio but i believe mine could be split in such a way that i can do 10% on a weekly basis. If ever it raises any flags i can always see its the result of some freelance gigs i am working on (these sort of things dont usually have, or are required, official receipts).

And I agree with other answers, don't tell your banks your into crypto. Better to avoid complications!

That was a smart idea because you can get another chance to increase your funds and I am sure that your profit will bigger too. I am trying to do the same things as, but I always withdraw my profits at the end of the month unless I have an urgent thing that needed money. That will help us trade with a bigger amount so we can also expect to make a bigger profit. With the current market situations, I am sure that we can take the profit over and over because almost all coin can go up and down many times.

My local exchange market have support and working each other with local bank and we can cash out our bitcoin become cash money in our local exchange market, I like this way how easy to cash out.

It's good to do split cash out for some spending that does not in rush, I mean in some accidents or operations that needs to be paid instantly since some cashing out Centers have their own limit of how much to cash out per day and still depends on base to base scenario in different areas and mobile wallets we have. We must try different ways to cash out or know different info of different cashing out ways so that it will be comfortable for us.

Buy gift cards or vouchers! 

Yes, this question often arises against employees of the Bank. I think they've got a lot of information to know that the huge transfer value comes from Crypto trading. Before this question was asked to me they already knew from a lot of information circulating that Bitcoin in my country is very popular.

I personally do not fear the taxes to be applied. It's just no tax yet and this may be my advantage. That should be able to generate many advantages and immediately to melt those results.

IF in your country The public system works well, ok.
 
Here in Brazil, health care, safety, education are not good.
So the tax doesn't work well, since the government doesn't use this money as it should.

To top it off, the current government is slashing funds for universities, but no tax cuts.

You have to convert cryptocurrency into fiat money through either use peer-to-peer exchanges (P2P) or third-party exchanges, right?
And then, the exchanger will send fiat money to your bank account, so, the bank already knows that your funds come from an exchanger account, no need to worry.
If local tax regulations stated that you need to call the bank before cashing out a large amount in one transaction then do it.
But if you want to cash out without having to call the bank, just withdraw a sufficient amount probably below £2500 a day as you may withdraw up to £2,500 without giving any notice in advance.

No, I wouldn't, banks don't like cryptocurrency and cryptocurrency don't like banks. I suggest that if you want to want to deposit your money that you're earning in cryptocurrency in banks, please don't deposit it in one go, if you're about to deposit $20,000, deposit only $3,000-$5,000, that is if you are their customer for a long time, if not, make it a little more little, so they won't suspect you doing anything illegal.

It also depends on how good is your profile in their database, if you have another business other than investing in bitcoin where you earn big as you earn in bitcoin, then there is no problem on depositing it all in one go.

It really all depends on the country you live in and the regulations surrounding cryptocurrencies. Most countries have begun to crackdown on cryptocurrency taxes and if you have no problem paying the high taxation rate then there is surely no reason for the government to be suspicious. Of course you would need to show proof of your transactions and it would also be good to ensure that the person who is paying you is doing so with legitimate money to reduce your personal risk, however, this is almost impossible to do.

If you are unsure about whether you will be able to deposit money safely, the easiest thing to do would be opening multiple bank accounts in different banks and depositing a small amount into each of them to reduce the risk of suspicion.

That would be the right decision to make , cashing out the profits but I prefer to take the profit and reinvest it in another project or simply keep the profit in bitcoin which in time it will gain more value that simply convert into cash and spend it.

If you go to your local bank from your city and tell them you're a crypto investor you will have some problems regarding deposit and withdrawal as banks still don't like crypto investors and they will put you under investigation if you bring big amount of money but if you come with a regular amount if money you will have no problems.

Also you must take in consideration the fact that in some countries ( like mine ) they already did cryptocurrencies taxable so make sure you want to convert them to cash. The best solution would be to convert into cash the amount you need and rest keep them in bitcoin as you can already spend bitcoin on almost anything.

Here in Brazil there was a war between exchanges and banks, where the banks closed the accounts of the exchanges. Then they started doing this with customers who transferred money from their account to their exchange accounts.
The problem was only solved after much legal fight. Banks have lost, but now, every withdrawal and deposit, is issued an invoice of the transaction.

Usually the government is not prepared in technologies like cryptocurrencies. They are the problem here due to their slow action when utilizing this new technology. I am glad our country Philippines is not making us hard o this. There are exchanges operating and from the latest they approve more exchanges by  giving them licenses to operate. Cashing out cryptocurrecies is not a problem, but i dont know when you have a big  volume, thats another story.  ;)

I have talked with one of my accountant friend, there is a legal way and there is a illegal way, most certainly this applies to everyone all around the world. The illegal way is to make smaller increments, as small as you can get and cash out to as many different peoples bank accounts as possible. Just to give an example, if you are married and have father/mother alive then you have 4 people right there, you/wife/mother/father, cash out to all of their accounts and that is less risky to get caught.

If the amount is higher than usual then you can find closer people, friends, family, brothers/sisters and whatever and take that number as higher as possible. Which means you will not get caught. Legal one is quite easy, just cash the money to your bank account, tell your accountant to just declare it as a profit and he will know what to do with it.

In my case, my bank never asked me about sudden increase in receipts. In 2017-18, I made some big profits from cryptocurrencies and withdrew about 6x of my previous bank balance. But I received no follow-back from my bank. Rather I received call from my bank representative offering me zero-fees credit card and some other privileges.
However, I had to disclose my source of income while paying income tax. In that, I showed all my profits as capital gains and never received any inquiry from Income Tax Department about the exact source of income.

Thanks for this reply.

Before making a huge withdrawal I have asked a bank consultant which documents they will need as confirmation of legality of my assets. And told them that I earned it from bitcoin price increasing. They told me that I should prepare any legal documents which are confirming my words e.g. invoice from bitcoin buying and invoice from bitcoin selling. I had those documents since I have used Swiss bitcoin brokerage instead of exchange. So after big amount was loaded to my account I had closed those 2 invoices to my bank account documents and no any problems happened. So I have confirmed that my profits are from investments. I am using Austrian bank and Swiss bitcoin brokerage.

It depends entirely on the size of the amounts.

The rules are designed to catch money-launders who deal in vast amounts of money. They don't move a few thousand here and there. So as long as the amounts stay small, they ignore it.

This is a good step but I think not all banks are the same. Because when you are talking about crypto they most probably not allowed on that kind of service. Well on my own point of view as long as they won't ask me about my private tansactions then I would never tell them and I think there is bank secrecy so they can't force you to say where are your deposits came from. If they insist then you can transfer to another bank. That's it.

If you want to put your bitcoin in banks, are you sure that your country does not prohibits bitcoin? You need to be sure that they accepting bitcoin, because if not, it can cause you a trouble. If you will deposit a huge amount of money Im sure they will ask you manh questions as well as your salarh statement if you have a job. You may split your bitcoin in several bank, do not put in one bank only.

When earn profit from bitcoin I cash out to the bank and never use my profit for re trading or re investing, always save my profit to the bank and use my salary for trading. Never compound your profit to start re investing or trading again and enjoy your profit to cash out in the Bank, you have doing what have suggestion for me.

Yes, but I know how strict are banks in Austria especially last years so I decided to protect my future assets in advance. Also not bank blocking assets if they are suspicious but government financial agencies. So that documents not for bank but for government if they will asking about my withdrawal. And government workers CAN FORCE YOU to tell sources of income otherwise they will just arrest it. And you will not able to transfer them to another bank account since they will frozen by government financial police. So don't be such self confident when you live in Europe and want to sell 100 Bitcoins. :)

Become wonderful when you make deposit in the bank with higher amount, the bank officer will ask you where did you get your much earning deposit? if bank officer know about bitcoin or altcoin is not really hard for giving information about bitcoin and altcoin, but if they are do not know what bitcoin is it, it really hard.

maybe only a few people who don't withdraw their profits and use it as an additional investment, of course there must be a calculation about it because could be scorched when experiencing losses
will be a double benefit if we take a big risk

You have to be transparent to the bank if you don't want to get investigated.
I think it really depends on the amount, we might say it huge but they have a amount ceiling per their rules.
Before you can open a bank account, you will have to follow the kYC procedure, fill up the form with information required, like where you funds will be coming from, and how much in a monthly, or yearly you will deposit in your account, if you supply all the correct information, there's nothing to worry at all.

That's why in European union banking area bank dont ask anything as long as you Receive funds from company with crypto currency business License!  And you dont go over limits!

well. what times do we live.. some time ago it was really fine with banks, if you bring them money, now they will charge police on you for this
police will come, arrest you, and then, maybe, after some time they will release you.. and that's now normal.

maybe it is better to open account in national wide bank which you trust and tell them that you will deposit money from crypto?

If you are asked by bank management on where did you get the huge amount, It will be time you will answer.
There are many banks that isn't strict with the money from cryptocurrency especially if the bank is well educated about crypto.

There are some banks here in our country that are strict about crypto which so much disappointing, But there are some active banks here that are very welcome to cryptocurrency.
Giving knowledge to their staff about cryptocurrency and not letting their staff be ignorant about cryptocurrency is exhilarating.

Getting arrested by police and having your belongings confiscated is a bit harsh especially for a customer that just wants to deposit his asset to the bank.
If there is a possibility that this will happen to me, I'd rather keep my assets to me myself than depositing it into banks :-[

I know someone who is using banks to save his profits from Trading, the bank was not okay with in the first place but he made it all clear to them. He provided the history of his Trading profits everyday and he explained how he do it. I think it took some days before the banks let him use their services in the Trading business that my friend is on. There is no harm guys if you'll give it a try, you're just going to ask anyways.

See, every country has different laws and different level of tolerance for using and trading of cryptocurrencies. I can share my experience with you but it won't make any sense because your bank may treat you entirely different than what my bank treated me. The use of cryptocurrencies is allowed in UK so I would suggest you to go ahead and withdraw your hard-earned money in your bank account. It's better to confront and face consequences with braveness since your earnings are legit and you are not indulge in any scam.

I am from middle-east Europe country member of EU but i am not risking to withdrawn money from exchanges to bank.There was cases that banks were suspending accounts.It is illegal but case at court can take long months
So i prefer to cash out to services what are crypto friendly and what have cards available
There is also exchange from my country registered on Malta.I can cash out and get my money from post office
Transfer is coming from service what is not crypto related and i pay just 1 % fee

of course when I have benefited from the results of trading that I do then I will make a withdrawal of profits but as much as possible I also have to increase capital to be able to get more profits in the next trade so I am not all the profits that I make money.

Really?  Casting out from Exchanger its illegal??

But somehow people do that

Just stay up with the limit and you'll be fine but there are circumstances that you would really break out those limits specially we are involving crypto on here where possible income or profits would be more than we anticipated which in result it will really trigger out some alarm if you do tend up to use your own bank account on cashing out.
So far in my case they havent notice it yet since it isnt really that big amount but its bigger on casual deposits that i had done on my entire life.This also vary with countries laws though when it comes to their own AMLA.

If you're planning on cashing-out for a huge amount of money, I would recommend doing it by parts. For example, you wanted to cash-out $50k, dividing it by 3-5 parts will be easier and the banks wouldn't probably be going to require you anything or ask any questions whatsoever.

But when it comes to "fees" it is unavoidable, but I've heard some banks don't necessarily require a fee as long as you have a membership, or you're already a regular.

I have different way from the other trader or investor with how to manage my profit, when I got profit with higher price of my coins I will cash out and never re compound my profit with my salary, I save my profit first in the bank and keep continue trading or investing with my money before, I will not take risk with compound my profit to re investing or trading in altcoin.

The final decision will depend on whether crypto is legal, illegal or neutral in your country. In countries where it is legal, it is very easy to walk into the banks and explain your source of huge profits and get away with it. On the other hand, countries that have crypto as illegal will raise legal concerns and accusations which may tamper with your account. In such countries, it is always good to use the private merchants or open different accounts from different banks and save in smaller amounts. Opening international bank accounts can also be an option.

Most banks are really strict even if you have provided such evidence, good thing that the bank you go with is really professional where they consider even assets coming from cryptocurrency. At some point, if you are not able to give them the evidence your funds will not only be frozen but also be confiscated by the government and might suspect you in illegal activities. Since the first thing that comes to their mind when cryptocurrency was included, it is all about the illegal investment schemes or pyramiding.

If the money is clean there is nothing to worry about if you've got nothing to hide, banks have protocol and they abide with the law they have right know where your funds coming from but you can only be questioned if your account has been flagged. If a certain bank refuses to accept money from crypto exchange then find another crypto friendly bank or if you have problem with huge amount split your deposits from different banks.

Even though it's clean if the amount is questionable, you'll be asked anyway. However it could be avoided if you didn't cashed it out at a single moment. As long as you don't need to cash out huge amount money in crypto immediately, it's better to schedule it in different days and weeks.

indeed after getting profits from trading results I usually make a withdrawal of profit and make cash but not all of it because if I make a withdrawal of all the assets it will only make me unable to trade and can not get any more profit.

Exactly! We should not be worry if we got it from the fruits of our hardship, just explain clearly if you have been questioned in the bank, I've questioned by bank and remittance once, but, when I already have record and explain everything they didn't question me anymore, so nothing to worry about it, they are now aware of crypto and they know that we earning online through it.

Suspicious money can't easily be cashed out in banks, unless you have a decent job and business.
Having a huge amount of money to transfer in your bank account without having any job/business will be a big problem, providing evidences on where you earned that money will be necessary. Saying such thing as its your profit from cryptocurrency is not enough evidence and they might question you deeper for that.

Correct I agree with you, you can cash  out it anytime you want if you know that the money you are holding is clean and came from a decent job theres no need to worry about , you may cashout bitcoin now in different ways , you may do it in banks also there are banks that already accepts money from bitcoin transactions.

This topic is not that. OP needs a methods to cash out his profits once he has made bigger stores in bitcoin. It is risky to go through exchanges with big volumes since they may block your account and force you to undergo KYC keeping your money in lockdown unless you give them your information. While this is mainly meant to prevent criminal money laundering, many so called "innocent" people attempt to evade taxation of their businesses by using crypto and attempt to sell it in bulk.

I think the OP has got enough answers and he should lock this topic.

When you make deposit with higher amount to your bank account they will called police and I think extreme way when you make cash out your money to bank, too risk if you make big amount for cash out but if you can cash out with little amount every day to keep your bank account safety without called police men with your activity in your bank, you  can cash out in daily day with small amout.

I have experience when i want to withdraw big amount of money from Bank, teller really ask me where i get the money from. I only said that i sell handphone via online and it is money from my capital and profit and i want to use it to buy it again. I think some Banks really strict about where is money that their users come. Because some banks really strict especially if there are crypto involved in it.

Maybe it will be a little suspicious if they know that we get from cryptocurrency while some of my experiences at that time withdrew their money also thinking that cryptocurrency is quite dangerous if we invest or work in it. very funny with what they say

I only think they just not educated yet. A lot of people in here i believe not know about cryptocurrency yet. And some of them will think what best that they can do is real work. If they can know about bitcoin and cryptocurrency itself, they wouldn't resist it.

The lack of more accurate knowledge and information is not a lack of education, if he is not educated he will not work in a bank because the average worker in his education bank is above average.
if that is the case, you should explain it well so that the person knows and understands what cryptocurrency is so that the person is interested in knowing more clearly and eventually joining cryptocurrency.  ;D

Yes, it is not because of the education, I know a lot of people who didn't even enter into College, but they are successful one, it is all about how determined you are in changing your life, education maybe an asset but does not guarantee that you will become successful on it. It is sill up to the person how they want to become rich.

Cash out profit is very important for every trader, how much profit you get every day never to cash out if you still have chance because if try to re investing your profit and get more you lost your opportunity to get back your profit again, now still have chance when you get profit from investing or trading cash out your profit and use half for starting trade or invest.

I would recommend to get an accountant who is able to handle crypto. There are some about. Or if you've not done many trades then you might be able to work out your tax yourself. This comes under capital gains in the UK. There is a minimum allowance of £12k for the 19-20 year ( https://www.gov.uk/capital-gains-tax/rates ), so you'd only be taxed on gains above this threshold. The rate I believe is 10% or 20% depending on your tax band. Again though, get an expert to look into it if you can't yourself. If you have conducted a huge number of trades, it might be difficult to work out what you owe, but I would imagine that HMRC are happy with a best-endeavours approach, given that crypto tax is a bit of a grey area. I have paid some CGT on crypto gains myself.

This is done for the safety of people and banks as well. If someone who has history of depositing few thousands into his or her bank accounts and all of sudden comes up with millions, of course everyone is going to doubt it and bank is going to call police for further investigation. They are bound to do so for the betterment of whole nation.

Well, if I'm in that situation, I will cash out my earnings in crypto regardless of the feedback of the banking staff or whatever they might say because it's my money and there is bank secrecy that they are not allowed to divulge any personal information in your account. As long as you have any reason for resources much better don't tell them where the money comes from because you have nothing you can do if your money in the bank will freeze by them and hold.

withdrawl our profit from our trades was strategy to get back our initial capital when we strart trading. When we get some our initial capital, we will feel  comfort and also psychology feel confidence.we must be dicipline with our plan, when we entry and exit from market.included time to withdraw our profits.

That is what i'm afraid to. Because when people want to withdraw money, Bank teller will chat with us and ask something like what is our job, where is the money come from. Although it is not in formal situation, we should be careful about it.

I'm the same as you, I don't like to say I make money through cryptocurrency, because I don't like to attract attention. In the internet world we can make a lot of money, so me and some of my friends have never received reports or questions about where this money came from. Making money through adsense doing business online and investing online is common, but for a value of more than 100 million will definitely be subject to income tax.

Better cashing out your money now because price of bitcoin and altcoin still down, never take risk with investing right now when bitcoin or altcoin still down, you can buy after have possible bitcoin and altcoin back to higher price, Now you can cashing out your bitcoin and altcoin assets although waiting when bitcoin or altcoin back again to higher price for recovery how much lost your investment assets.

Yes truly bitcoin price is decreasing but it doesnt mean that we need to cash out it just because of the changes. We should be used to it so that in other time that bitcoin price will drops again we will not ne triggered to sell early. If we continue to cash out early we will lose some money. Cashing out money is not ideal in this time.

We do have different IQ or mindset, some can really understand easily how trading works, some needs few months or even a year for them to master it, so we should not judge them, help them instead, as their success is your success too, so judging someone will not make you rich, instead, lift others the way other help you when you have nothing at all.

Why would a bank check for all the amount of money coming into your account, not sure which country you are from to have restrictions like this, when we see these situation i feel how lucky i am since i do not face any restrictions like these and if you are paying your taxes on time there is nothing to worry and happy to live in a free country  :D. I would like to see your response as i am curious to know which country you are from because the bank teller is asking for the source with every transaction is ridiculous.

So far I only often get messages from banks to make deposits or make credit cards. for messages asking information on sources of money income? I have never heard of it in my country, and never gotten that from the bank. Since my country has no restrictions and penalties for crypto users, I am not afraid to deal with the authorities, because I am not mistaken.

If there is something like an Anti-money laundering council or group in your country that the government is using to track down illegal activities then expect that any high amount of deposits and withdrawals will be questioned by the bank but you can get away with it if you have a legit business. Sometimes you can earn more from your side hustle than your regular job or business.

Theres a bank in our country that does not allow an individual to open a new account if the source of funds is through cryptocurrencies. Its a bad idea if you ask me because banks are now staring to adapt blockchain technology and here we are we have a bank that opposes this kind of technology.

I am the same as you. with lazy reasons to explain because several times I gave reasons about crypto, but they did not understand it and when I gave education it was the same and in my opinion right now it is better to look for other reasons that getting money from the internet has many ways

Every trade or investment must be guided by set goals. These goals will be the guide which will tell the holder at what price to withdraw to make the desired profit. The goals are normally set after studying the project or coin and knowing its capabilities in order to set practicable goals for the coin.

Thank you before, i am from Indonesia and Bank that i use now is (can we tell the name of bank here?). The teller ask me anything, like work in where, where did the money come from, but in informal situation like people chatting as usual. And i never talk about crypto. In other Bank (different bank name), i saw my friend post in his facebook timeline, if his friend bank account get blocked because in transaction has correlated with crypto. But the second case, i never ask it is true or not. Never want to involved to other personal problem.

When it's huge amount to withdraw they will definitely ask due to their record on where it came from and whats the purpose of withdrawal, especially if it's over the counter since ATM Withdrawals are limited only. If there are countries like us that been asked and needs some record due to AML and government concerns if crypto is not yet fully used in our country better not withdraw in bulk in same bank or day or better use different remittances option.

I once experienced a situation like this when came to the bank office to withdrawing my money. When he looked at my account he was suddenly shocked to see the amount, that was reasonable because at that time I was 19 years old and making much money like that was impossible. Then I explained in detail how I make that money from cryptocurrency. So far i do not have problem with the bank and the police to have many money like that.

it's true you can make a withdrawal of the profits you get from trading results but you should be able to think long-term meaning that the capital you use doesn't run out and as much as possible you can increase your trading capital from the results of the profits you get so that you can get more profit .

You have a good idea but not every one here is a long term investor. Believe me, there are plenty day traders and short term investors who will not hesitate to cash out the least profit they make from their trades and investment. This is crypto and people have different strategies for making their profits.

Basically setting up goals isn't really necessary if you want to earn huge profit in trading. You just need to set your mind that whenever you cash out, always consider that it is really for your needs. Cashing out to often will just make you pay multiple transaction fees. And if your funds on an exchange grows higher, more profits will increment as well. Just make sure that all trades will be profitable through selling and buying at the right time.

Bank is not care how much money you deposit in your account and they will glad if you received much money and deposit to your account, they don't care with your money from bitcoin because they only get benefit if you have and save much money in the bank they can use your benefit for loan your money to the other member, maybe you want to get chance with bank to ask you where is from deposit moeny in your bank.

Bank is not care how much money you deposit in your account and they will glad if you received much money and deposit to your account, they don't care with your money from bitcoin because they only get benefit if you have and save much money in the bank they can use your benefit for loan your money to the other member, maybe you want to get chance with bank to ask you where is from deposit moeny in your bank.
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Exactly, they care a lot if you are withdrawing your fund to them, I remembered one time when I want to cash out my money, but they even interview me and asking what is the reason, they even offered me money for me not to withdraw my fund, I don't have much money of it, but maybe it's a question for them when someone closed their account.

Did you not get negative comments from the bank? because my case is almost the same as yours they are surprised by the nominal money that I will withdraw from where. but so far I myself have been able to explain to them and at the beginning of the negative comments I got that bitcoin is very high risk and even prohibited.

All these challenges are still present because we are still giving top priority to fiat and we all still want to cash out our bitcoin to fiat, if we leave our bitcoin in the wallet, and use it to make payment for whatever thing we need to purchase, we will not be getting scared of any bank placing ban on our account over the hard earned money that we worked for, but even if we want to use the coin to make payment, hardly do we see any merchant that wants to accept bitcoin for anything that we want to buy because of the volatility, and also, the reason why people still want to change their bitcoin to fiat is because they are scared of the volatility of the coin also, so that the value of what they are actually meant to hold will not depreciate, but as a believer, we are still the ones that can make the volatility of the coin to disappear.

That is the problem of the society, just because you are too young to make money means that you are suspicious when you have 6 digits amount of money in your bank account, when they can't do what you can do, they will start giving you problems, what I am trying to imply here is don't even trust the banks with your money, store it on your bitcoin wallet or cryptocurrency wallets, and only cash out a few when you need it.

Small amount from time to time, stay low key, to avoid getting conflicts with the banks.

It may depend on the country whether to legalize something. But suspicion is going to happen anywhere over an unexpected big deal. In my country the bank is not authorized to take care of such problems, his small amount of nominal does not affect and suspect they transact because it is the authority of the customer and the bank should not interfere unless there is a report of one of the parties Not in the benefit. So yes, what else should we obey the government to make it all okay and obedient in paying taxes.

The decision to withdraw ones profit in cryptocurrency investment, trading, gamble, holding, bounty participation etc depends on the goals set for that coin. Every coin in ones possession should have a goal set for it. This goal should be based on the research performed on the coin in order to know the capabilities of the coin to set realistic goals. Once that price goal is reached, the investor can withdraw.

when I made a bank account book. I don't think there will be employees who ask where my money is coming from. they just ask what I do for a living. and in my country I have accepted and allowed bitcoin as a trading and investment community. so if for example there is a bank employee who asks about where my money comes from, of course I will answer from cryptocurrency. and
I will save the proceeds from the crypto profits in several bank accounts.

It depends, because there still a country that do not put their trust in cryptocurrency. Basically the analogy is simple, if we don't want banks, they do not want us either. So when ever in case we encounter bank tellers or associates asking us if it is from crypto or not, we shouldn't be surprised at all. But sooner or later, they will realize that the cryptocurrency is now become dominant that they need to adopt it.

Yes that's right it's good thing now that we do have some payment system such as the remittance center that we can use as an alternate way to cash out our profits from crypto. So, for me it's okay for as long as the remittance fee is lesser so it won't cost that much.

This is a good thing now that we are in innovative world , the impossible is becoming possible.

Always cash out how much profit you got because if you want to use for re investing maybe you will miss chance to earn and enjoy with yoru profit when next time your investing lost, always enough with how much profit you get and cash out first with your profit. You can compund if your profit have reached more than 30% and you can withdraw about 10% of your profit and half use for re investing.

With the passage of time of you are getting profit and are sure that now you are getting expert in trading then you have not to withdraw all of your profit and have to follow the strategy which you mentioned, like you have to continue to trade with even those money which you earn in trade. It will help to have the chance of getting high profit with your high investment. I also started the trade with a smaller amount and when I got the profit from there I continued to trade with all of them and increased my portfolio. Now I withdraw some amount and add the remaining profit to my portfolio.

Exactly, they care a lot if you are withdrawing your fund to them, I remembered one time when I want to cash out my money, but they even interview me and asking what is the reason, they even offered me money for me not to withdraw my fund, I don't have much money of it, but maybe it's a question for them when someone closed their account.
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Banks have "trigger amounts". So if people are suddenly depositing large amounts, but they don't normally do this, their algorithms flag it.

Go with small amounts (less than $1000) and withdraw slowly over time.

I don't think the police also have the right to judge you and to give you a search warrant because of your huge deposit transaction on your bank. The bank should be happy because you choose them to make your money safe and not to judge you by doing anything wrong. They also don't need to be care about how you earn those big profits and as long as you are not doing anything wrong there is nothing to worry about checking you by the police.

The idea of withdrawing all the cash does not hurt but if someone is a bitcoin holder and plans to sell away all of his holding to make profit, he will be regretting this decision sooner than he can imagine. Nothing can be more painful than this. We all know the current situation of market. It is going through a dip. Moreover, this dip is not going to stay for longer so now is the last chance to invest at low rates.

I think it is not necessary to tell them where do you get your money from, your income or deposits on their banks because I believe that they don't care where the money are from because when you deposit it in the bank and the only care that they want is to earn and get your deposits. As long as you deposit money to them they will be glad enough because they are gaining profits. I have an experience here in my country that I cash out my money from coins.ph and the money is from the crypto and the bank management ask me why I am getting always a huge amount of money everyday and I say that it is just because of my investments and business.

Nice topic. Good to see some interesting topics I can really sink my teeth into lol

I was silly when bitcoin was up last year and I have been staying away from converting to fiat but I wish I had since I spent my bitcoin when it was at $3000 and it makes me cry. I was so scared of paying tax and all this other crap I basically shot myself in the foot. I just didn't want to be under the radar for large transactions all of a sudden.

I don't really have too much of a problem since I spend bitcoin on most things fiat on groceries and light and water bill. I keep a bit more for going out and for takeaway and things like that. This all falls under a certain amount per year and that amount is too little to be taxed on. So I don't actually qualify for tax.

I don't pay tax on my crypto since it is crypto and not government-issued. Hell, it's not even money its just "nerd" money we gave value to. xP

There is also a bit of a moral dilemma. There is some corruption in government like in all but we have serious problems like a low rate of employment and many jobless people. The tax money is often wasted. For me it feels like paying tax only feeds and encourage corruption. It actually feels like I am going against my country by paying tax when I know some will be wasted or used to buy officials new sports cars.
It isn't like in Europe where you get free medical care and schooling or at least very cheap. We don't get any of that here. They want you to pay tax and give you very little back. Then you have to use medical aids and other private companies because the government pays for almost nothing. Anything that is public here is total crap. You will die in a public hospital..... -_-

So that is how I feel about that.

Bank can not lend others People money to other customers! 
You Get loan then new money is created printed.
Not from other Person money!! 
You should learn about fundamentals!

Here in my country banks do not ask where the money is coming from if you do not withdraw probably more than 10-20k dollars. For amounts smaller than that we don't have to tell anything about our source of money so it is not a problem for us. Cryptocurrency is not something illegal tho.

its not illegal but there are company and people that dont allow it  . on our country some backs here are too strict and ask you if were your funds came from no matter how big or small the deposit was but there are some banks here that willing to support crypto . anyways i still dont use those banks to cash out because im just a small time earner  .  i can still easily withdrew or cash out my crypto to fiat using money remitance center as they also support it  .

Dont deposit them in large amount you can also do is create a wallet anywhere as long as it is secured and safe then transfer all your profits there then you can start cashing out bitcoin in your wallet to your bank account in small portions so that banks wouldn't get a red flag on you.
If you'd already deposit it to your bank 2 things might happen:
Either they taxed you or ban your account.

Good for you, but in some other countries where AMLA is too strict they needed to provide information about the money and it will be frozen if you won't be able to provide the sources of your funds. You have to provide good information to avoid this delays and make sure to have valid proofs to ensure that you can justified your money which not coming from illegal activities.

If you do not want to get involved into such verification or whatnot, you should sell your cryptocurrency peer to peer in order to receive your profits in cash. You can do transactions in casino where there is no dirty or clean money. Just meet up in a casino and rent a room for you two so you can execute the transaction and bring home the cash without waiting for any verification.

I never told them. It's not my job to inform them of anything, their job is to accept money for me. If they try to do anything then I'll close any other remaining account and take my money elsewhere.

So far I've never any experienced any problems with withdrawals but then again, maybe coz I never send anything huge in one go. Money that goes to my bank goes through verified exchanges so maybe that's a reason why they haven't gone after me, they know how I'm making money.

If you want to have convenient way to cash out your profit then use remittance center but there is a bad side of it and it is the high transaction fee. It is easy to withdraw your money but the fee is too high. In my country there is a wallet that we can cash out our bitcoin through a bank where there is no transaction fee. It it really convenient for us to get our money through this way.

When I send a Bitcoin transaction and transfer my funds to my wallet, I will not ask permission from the bank. Today there are cryptocurrency exchangers and there is no point in asking.

you right, best way to save money - do not sell rewards, just buy bitcoin whatever