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The big problem comes when they want to use their crypto horde to buy real world stuff. Want to buy a house? Now you need to convert your crypto into fiat and

The big problem comes when they want to use their crypto horde to buy real world stuff. Want to buy a house? Now you need to convert your crypto into fiat and a deed transfer. People will start asking where your funds are coming from. This is where you tend to get caught.

ethbr0 3y ago
> People will start asking where your funds are coming from. This is a weird statement. If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it. If it's a mortgage down payment, then the bank is more interested in if your assets are going to disappear (e.g. are they actually a loan from a third party?). I've never had a mortgage bank inquire about my tax situation. If you're talking about IRS audits... then yes, they might be curious how you purchased a giant asset without any declared income. But that's similar to any unreported income situation.
- taffronaut 3y ago
  >> People will start asking where your funds are coming from. >This is a weird statement. Not in the UK. Here there's a legal obligation on the conveyancing practitioner - which you have to use - to confirm the source of funds for the purchase. They "will ask questions about your salary, request bank statements and ask you to give details of any family inheritances"[1]. [1] https://www.bannerjones.co.uk/your-property/services/buying/online-conveyancing/pages/source-of-funds-check https://www.bannerjones.co.uk/your-property/services/buying/...
  - ethbr0 3y ago
    Are those the new UK regulations intended to prevent dirty money from buying real estate? Or has it always been a thing?
    - krageon 3y ago
      I believe it is also the case in large parts of the EU and yes, that is the reason why.
- pyrale 3y ago
  > If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it. Yes, but your bank and the bank of the seller both have strict KYC/AML rules to respect. And the seller probably doesn't want to accept a pile of bills that requires laundering.
  - ethbr0 3y ago
    I think we can agree that KYC/AML rules are... somewhat effective, in the face of determination to circumvent. Honestly, to op's point, the IRS audit would be the likeliest to nail you, post-purchase. "Person without demonstrated income suddenly buys expensive asset" is hard to hide and a huge, trackable signal.

ethbr0 3y ago

> People will start asking where your funds are coming from. This is a weird statement. If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it. If it's a mortgage down payment, then the bank is more interested in if your assets are going to disappear (e.g. are they actually a loan from a third party?). I've never had a mortgage bank inquire about my tax situation. If you're talking about IRS audits... then yes, they might be curious how you purchased a giant asset without any declared income. But that's similar to any unreported income situation.

taffronaut 3y ago
>> People will start asking where your funds are coming from. >This is a weird statement. Not in the UK. Here there's a legal obligation on the conveyancing practitioner - which you have to use - to confirm the source of funds for the purchase. They "will ask questions about your salary, request bank statements and ask you to give details of any family inheritances"[1]. [1] https://www.bannerjones.co.uk/your-property/services/buying/online-conveyancing/pages/source-of-funds-check https://www.bannerjones.co.uk/your-property/services/buying/...
- ethbr0 3y ago
  Are those the new UK regulations intended to prevent dirty money from buying real estate? Or has it always been a thing?
  - krageon 3y ago
    I believe it is also the case in large parts of the EU and yes, that is the reason why.
pyrale 3y ago
> If it's a cash offer, it's a seller's job to determine if you have the money, not if you paid taxes on it. Yes, but your bank and the bank of the seller both have strict KYC/AML rules to respect. And the seller probably doesn't want to accept a pile of bills that requires laundering.
- ethbr0 3y ago
  I think we can agree that KYC/AML rules are... somewhat effective, in the face of determination to circumvent. Honestly, to op's point, the IRS audit would be the likeliest to nail you, post-purchase. "Person without demonstrated income suddenly buys expensive asset" is hard to hide and a huge, trackable signal.