I have a friend who has made some decent returns with crypto and now wants to cash out.
All the BTC he purchased was done anonymously using cash in hand.
The issue is that the government doesn't know he purchased these cryptos and he did not do clear record keeping of all his trades / profits over time.
My friends worried that if he tries to cash out into the tradition banking system (in order to purchase property) the authorities will freeze his account and seize the funds until sufficient evidence is shown proving where the $ came from.
Now my friend can just pay full capital gains % on the profits (no deductions) he withdraws into the traditional banking system, but where all the $ came from is still ambiguous.
Some $ was made trading, selling, gambling, airdrops etc etc.
What's the best course of action?
If your country is one with strict tax laws and even financial laws then there is no two way about it. You will just have to face it but and a tax consultant will equally do the job but be ready to part away with some of the money. But on the other hand what if instead of cashing out everything at once and attracting attention, a gradual and piece meal cashing out could not raise a dust then the money gathered over a period of time can then be use for the asset and another way to go about it is to get someone to borrow the money from then give him back in cash after converting the bitcoin.