- A cryptocurrency investor in the UK has found that his conveyancer won’t accept crypto profits for a house purchase
- The conveyancer told him that despite having overwhelming proof of his profits they could not accept the money source
- The case is another reminder that cryptocurrency acceptance is still very low
A British cryptocurrency investor trying to use his substantial profits to buy a house has found the hard way that not everyone is quite on board the crypto train yet. The investor posted a query on Reddit yesterday to ask advice after the conveyancer taking care of the purchase informed him that cryptocurrency profits were “not acceptable” as proof of funds despite him showing considerable evidence supporting his trades from 2016. As a result the house purchase is in the balance despite him sitting on the cash to buy it.
Cryptocurrency Trader Can’t Use His Fortune
The poster, whose username is pm_me_your_shih_tzu, informed Reddit that his $13,000 investment in 2016 and 2018 has made him a millionaire and that he was using some of his winnings to buy a £440,000 ($614,000) house. After things going smoothly initially, the poster received an email from the conveyancer regarding his proof of funds:
…the partner of the firm has advised on your file that proof of funds by way of Bitcoin is not acceptable under the governing body and anti-money laundering policies.
The poster adds that he has handed over evidence of his early purchases that have netted him his fortune, clarifying that although some trades are missing he can still prove that he earned the £440,000 sitting in his bank from crypto trading.
Cryptocurrency regulations and laws are notoriously vague, with so much left open to interpretation by authorities and with private companies unused to dealing with it. Indeed, similar posts in the past have detailed the ease with which other users have purchased houses using cryptocurrency profits, so it seems that the success or failure of such a venture is down to the companies you choose to process your purchase.
Explore Every Avenue Before You Buy
In theory if a cryptocurrency investor can prove that they obtained their funds through genuine trading reports and capital gains tax records then there is no legal reason why a conveyancer could not accept this. However, it is highly likely that this conveyancer, despite initially saying they could accept cryptocurrency profits as proof of funds, has never dealt with crypto before and is worried that the proceeds are somehow criminal in nature.
The lesson that can be learnt from this then is to make 100% sure that you have evidence to support the profits made for any large purchase and that those helping it go through will accept it BEFORE you begin the process. Don’t take their word for it – make sure. Don’t forget that most people still don’t know or trust cryptocurrencies, and just because you know you did nothing wrong don’t assume that they will think the same.
Of course, you could always just pay for your house in crypto.