Hi there,
I am trading Bitcoin on LocalBitcoins and similar websites. My bank just sent me an email asking me to provide some details regarding the transactions in my account:
- Please explain the origin of the funds received from *Name Surname* (what goods/services the funds have been paid to the account for) and provide relevant documentation (contracts, invoices)
- Explain what kind of relationships you have with *Name Surname*
- what business activity I am engaged in
- From *date* you have sent *amount* to Kraken, Payward Ltd. Please explain the purpose of such transactions.
People send me money to my bank account, I send them their coins. What kind of explanation should I provide to these questions to ensure the sustainability of my account? Especially for the first question; we do not have any contracts, and the only documentation I can get is the invoices from the exchange. Should I be completely open with them or should I try to hide that I am selling cryptocurrency? Maybe there are someone who have had similar experience?
Edited: the country I am located in, crypto is completely legal.
They want to know if you are compliant to the bank, so your first assignment is to check if the bank is open to accept transactions coming from Cryptocurrency, if they do then, you can tell them these transactions since they'll understand how Cryptocurrency trading works.
If they not then you can look another bank to transact your business if you already have huge funds and want to have a good standing you need a good lawyer for advice on this.