Bank asking for KYC info when cashing out large amounts?

Cashing out giant crypto positions may be surprisingly troublesome even for official holders. That is especially true for early adopters who used a number of exchanges through the years, together with platforms that not exist.

Even crypto-friendly banks stay extremely cautious on account of regulatory strain and historic associations with illicit exercise. In lots of instances, the hardest half isn’t converting crypto to fiat it’s getting the fiat accepted and deposited safely with out triggering a freeze or rejection.

A number of things are crucial to organize prematurely:

Doc your whole transaction history and provenance (typically going back a decade).

Keep a transparent audit trail of wallets, counterparties, and exchanges.

Anticipate complicated compliance critiques which might be typically misunderstood by front-office employees.

With out proper preparation, it’s widespread to face weeks or months of delays, repeated doc requests, or outright refusals.

One ignored drawback: early wallets are typically flagged as “tainted” due to exposure to exchanges like Mt. Gox, BTC-e, or Cryptsy. Blockchain forensic instruments reminiscent of Scorechain assign danger scores to this historical exercise even when all funds are completely official in the present day. Addressing this requires clear documentation and, in some instances, assistance from a regulated intermediary who can contextualize the forensic hits.

I work professionally on this area (Swiss-regulated monetary middleman) and have helped shoppers manage these actual challenges from tracing the supply of funds to onboarding with personal banks. Glad to share extra detail in the event you’d like; be happy to message me privately if in case you have specific questions.