Retail investor
Withdrawal from an exchange to the bank
“We gather your purchase, custody and sale history so that the deposit from the exchange is documented and consistent with your profile.”
My bank asks for the source of funds of my crypto
Has your bank sent you a request to prove the source of the funds coming from your cryptocurrencies? We explain why Law 10/2010 requires it, what documents to provide and how to respond properly and on time to avoid your account being blocked.
Is your bank asking where your funds come from? Free assessment
Tell us what you have been asked for and we will tell you what to provide and how to respond.
- 50+ institutions advised
- Reply within 24 h
- No commitment
- Key legislation
- Law 10/2010
- Applying due diligence
- Art. 7
- Recipient of reports
- SEPBLAC
- Return for crypto held abroad
- Form 721 (Modelo 721)
Services
How we help you respond to the bank
Six areas of work to prove the source of your crypto funds, prepare your response to the request and keep your account from being blocked.
Source of funds
Proving the source of funds
We document where your money comes from (purchases, trading, staking, salary paid in crypto) with the narrative and supporting evidence the bank requires under Law 10/2010.
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PurchasesTradingStakingSalary
Banking
Preparing your response to the bank
We structure the cover letter and attachments so that your response is clear, complete and proportionate, anticipating what the bank will review.
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Cover letterAttachmentsLiaison
Traceability
Crypto traceability report
On-chain analysis that reconstructs the path of your funds from their source to the exchange and the bank, with verifiable documentation.
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On-chainSource of funds
Travel Rule
Transfer data
We help you provide the originator and beneficiary data required by the Travel Rule, making the transaction more consistent in the eyes of the bank.
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DataCounterparties
MiCA
Using regulated exchanges
Using providers authorized under MiCA gives you higher-quality documentation and strengthens your narrative of lawful origin.
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CASPExchanges
Defense
Information requests and inspections
We respond to requests from the bank, the Spanish Tax Agency (Hacienda) or supervisors with organized, consistent documentation that is proportionate to the transaction.
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BankTax Agency
Profiles
Who the bank asks to prove their source of funds
Investors, digital nomads, companies paid in crypto and traders: each profile needs different source-of-funds evidence to respond properly.
Digital nomad
Recurring crypto income
“We document your invoicing, tax residence and traceability so you can respond when the bank asks you to justify income received in crypto-assets.”
Company
Customer payments in crypto
“We prepare the accounting, contractual and traceability support so that your response to the bank is solid and conversion into euros is not held up.”
Trader
High, frequent volume
“When the bank asks for explanations about large movements, we organize the narrative and the evidence that support your trading.”
Consequences
What happens if you respond poorly or don’t respond
A source-of-funds request is your chance to avoid a block. If the response is late, incomplete or inconsistent, the bank may escalate its measures.
Account activity blocked: if you do not provide the source of the funds in time, the bank may restrict or block the account as a precaution.
Inconsistent response: contradictory documents or gaps raise more questions and drag the process out.
Report to SEPBLAC: if the bank cannot verify that the funds are lawful, it may report the transaction as suspicious.
Law 10/2010 · Art. 7
Due diligence
The bank must know the source of the funds and the purpose of the transaction; if it cannot, it must refrain from executing it.
De-banking
Account closure
Failing to respond can lead to the relationship being terminated and make it harder to open an account at another bank.
Tax Agency
Tax cross-check
What you tell the bank must be consistent with your personal income tax (IRPF) return and, where applicable, with Form 721 (Modelo 721) for crypto.
Is your bank asking for the source of funds of your crypto?
We help you gather the documents, prepare the traceability report and draft a clear, proportionate response to avoid a block.
Frequently asked questions
Bank asking for crypto source of funds: common questions
Why is my bank asking for the source of funds of my crypto?
Because the bank is an obliged entity under anti-money laundering rules and must know where the money comes from and the purpose of the transactions. Law 10/2010 requires it to apply due diligence measures, and deposits from exchanges often trigger that check.
Do I have to give the bank this information?
Yes. Anti-money laundering rules require banks to collect this information and customers to cooperate with compliance. Refusing to provide it usually leads to a block or to the end of the relationship.
What documents should I provide?
It depends on the source, but the usual documents are:
- Exchange history and statements (purchases, sales, withdrawals)
- On-chain traceability report for the funds
- Contracts or invoices if you are paid in crypto
- Tax support: IRPF return and Form 721 where applicable
How long do I have to respond?
The bank sets the deadline in the request itself. You should respond within the deadline and back up your answer with documents: failing to respond is one of the most common reasons for a block.
What happens if I do not respond, or respond late?
The bank may apply restrictive measures and, if it cannot apply due diligence, refrain from executing the transaction and even close the account. In some cases it will report it to SEPBLAC.
What does a good response look like?
Clear, complete, consistent and proportionate: a chronological narrative of where the money came from, backed by verifiable evidence. That is what resolves the request before it escalates to a block.
Why does a traceability report help?
Because it reconstructs the path of the crypto-assets (on-chain and off-chain) from their source to the bank, with verifiable documentation. It is the strongest evidence that the funds have a lawful origin.
Does it have to match what I declare to the Tax Agency?
Yes. The information you give the bank must be consistent with your IRPF return (capital gains and losses) and, if you hold crypto in custody abroad, with Form 721. Consistency strengthens the case that the funds are lawful.
Practical guide
How to respond to the request, step by step
Responding to a source-of-funds request is not just sending an email: it means proving, in an organized and verifiable way, where the money comes from. The key is a narrative consistent with your profile, backed by evidence.
Why they ask
The bank is an obliged entity and must know the source of the funds and the purpose of the transaction. It is not distrust: it is a legal due diligence obligation that the bank must meet and document.
What you need to gather
Exchange history, proof of purchases and sales, on-chain traceability, contracts or invoices if you are paid in crypto, and the related tax support. All of it consistent with each other.
What makes the difference
A clear, chronological and verifiable explanation of how the money was generated. Responding on time and proportionately is what keeps the request from ending in a block.
Checklist: responding to the bank in 10 steps
- Read the request carefully: which funds it questions, what it asks for and the deadline.
- Do not improvise or reply in the heat of the moment: prepare the documents before you answer.
- Identify the real source of the funds (purchases, trading, staking, lending, salary paid in crypto).
- Gather your exchange history: deposits, trades, withdrawals and fees.
- Prepare an on-chain traceability report connecting source, custody and withdrawal.
- Provide tax support: IRPF return showing gains/losses and Form 721 where applicable.
- Write a chronological narrative consistent with your customer profile.
- Attach the documents in an organized, proportionate way, with no gaps.
- Respond within the deadline and keep proof of sending and of what you sent.
- If the bank persists or blocks you despite your cooperation, consider filing a complaint.
Need help preparing your response? See our page on proving the origin of your crypto or request a traceability report.
Source of funds in practice
From request to response: how to prove the source with evidence
Responding properly to a request is a process, not a conversation. It means reconstructing the source of the funds, documenting on-chain traceability and giving the bank a consistent, proportionate dossier. This panel shows how it works in practice.
1) RequestUnderstand what the bank is asking for
We analyze the request: which transaction it questions, which documents would resolve the doubt and the response deadline.
- Flagged transaction
- Response deadline
- Key documents
2) SourceReconstruct the source of the funds
Exchange history, purchases and sales, staking or salary paid in crypto: the real source of the money, documented and consistent with your profile.
- Exchange history
- Source of the investment
- Consistency with your profile
3) TraceabilityOn-chain traceability report
We connect source, custody and withdrawal through blockchain analysis to show that the funds have followed a lawful, verifiable path.
- On-chain analysis
- Off-chain documentation
- Verifiable narrative
4) ResponseA clear, proportionate response
We present the dossier in an organized way, with a cover letter that explains the source and attachments that prove it. The goal: resolve the request before it escalates to a block.
Tip: keep what you tell the bank consistent with what you declare to the Tax Agency. Contradictions are the main trigger for further questions.
Quick decisionWhat should you provide, depending on what the bank asks for?
One-off deposit
Proof of purchase/sale from the exchange + basic traceability of the withdrawal.
Recurring income
Contracts/invoices + full history + tax support + chronological narrative.
High volume
Detailed on-chain traceability report + enhanced dossier + liaison with the bank.
Response playbook
What the bank asks for and what evidence resolves it
Source of the money
Where the money arriving from the exchange comes from and why it is lawful.
Proof of purchases/sales, exchange history and traceability report.
Consistency with your profile
That the amount and frequency fit your declared activity and income.
Payslips, invoices, contracts and tax returns consistent with the transaction.
Path of the funds
The route from the source to the deposit, with no jumps or gaps.
On-chain report linking wallets, exchange and bank account.
Tax position
That gains have been declared and, where applicable, assets held abroad.
IRPF return with capital gains/losses and Form 721 where applicable.
Form of the response
That you respond on time, clearly, completely and proportionately.
Cover letter + organized attachments + record of the submission and its date.
Mistakes that complicate your response to the bank
Avoiding them speeds up resolution and reduces the risk of a block.
- Responding late or ignoring the request.
- Providing incomplete or disorganized documents, or documents with gaps.
- Giving explanations that contradict what you declared to the Tax Agency.
- Being unable to prove the source of the initial investment.
- Using unregulated platforms or platforms based in high-risk jurisdictions.
Practical glossary
Key concepts in a source-of-funds request
If your bank asks you to prove the source of funds of your crypto, these terms will appear in the request and in your response. Understanding them helps you provide exactly what is needed.
RequestInformation
The bank’s request for information
A formal request for documents to verify the source of the funds and the purpose of the transaction, with a response deadline.
Basis: Law 10/2010 (AML/CFT).
Source of fundsProof
Justifying the money
The body of evidence showing where the money comes from and that its origin is lawful. It is the core of your response to the bank.
Evidence: history + traceability + tax.
Due diligenceLaw 10/2010
The bank’s obligation
The duty to identify the customer, understand the purpose of the transaction and verify the source of the funds before executing it.
If it cannot apply it, it must refrain.
EDDEnhanced
Enhanced due diligence
Additional measures for higher-risk transactions or customers, such as high volumes or recurring crypto income. It requires more documentation.
More support = a stronger response.
TraceabilityOn-chain
Path of the funds
Analysis of the path of the crypto-assets from their source to the bank. It reconstructs and documents where the money comes from.
Evidence: on-chain report + supporting documents.
SEPBLACSupervisor
Financial intelligence unit
The Spanish authority that receives suspicious transaction reports. A poorly resolved request can end in a report to SEPBLAC.
Better to resolve it early, with evidence.
Customer profileKYC
Know your customer
The information the bank holds about your activity and income. When a transaction does not fit the profile, it triggers the request.
Key: amount ↔ profile consistency.
Form 721Tax
Return for crypto held abroad
An information return on cryptocurrencies held in custody outside Spain. Filing it correctly strengthens your case before the bank that the funds are lawful.
Tax support for the source of funds.
RefrainingArt. 7 / 19
Duty to refrain from executing
The bank must refrain from executing transactions when it cannot apply due diligence or considers them suspicious, and inform SEPBLAC.
Consequence: block and possible report.
Contact
Book a call
Tell us what the bank has asked you for and we will explain what documents to provide and how to prepare your response.
Bank asking for the source of funds of your crypto: legal framework and how to respond
When a bank asks you to prove the source of funds coming from cryptocurrencies, it is acting as an obliged entity under anti-money laundering rules. The law behind this requirement is Law 10/2010 of April 28 on the prevention of money laundering and terrorist financing. It requires institutions to apply due diligence measures on the source of funds and the purpose of transactions, and requires customers to cooperate with compliance.
Why the bank asks
The request is usually triggered when deposits do not match the customer’s usual profile, when transfers arrive from an exchange, or when the amounts or frequency are high. It is a preliminary step: responding properly keeps the situation from turning into a block on the account or the transaction.
What documents to provide
To prove a lawful origin, gather the exchange history, proof of purchases and sales, an on-chain traceability report, contractual support if you are paid in crypto, and tax documents. A chronological narrative consistent with the customer profile is what makes the response solid.
Tax consistency and the Travel Rule
The information provided to the bank must be consistent with your personal income tax (IRPF) return (capital gains and losses) and, where applicable, with Form 721 for crypto held abroad. In addition, the originator and beneficiary data linked to the Travel Rule strengthen the traceability and consistency of the transaction.
Deadlines, proportionality and supervision
The bank sets a response deadline and must apply its measures with proportionality and transparency. If it cannot establish that the funds are lawful, under Law 10/2010 it may refrain from executing the transaction and report it to SEPBLAC. On the supervisory side, the Bank of Spain and the CNMV (under MiCA) supervise institutions and crypto-asset service providers.
Source of funds and crypto banking
Related areas
Official sources
Key legislation, linked to the official text:
- Law 10/2010 of April 28 on the prevention of money laundering and terrorist financingBOE · consolidated text
Legislation and links reviewed in .