Crypto Cash Out

Investing / Cryptocurrencies
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Long time, no hear. Sometimes life takes unexpected twists and turns and you have to prioritize.

Regardless of that, I do have a question which I didn’t find a thread / answer using the search function.

I have realized some profits from my long-term crypto holdings not too long ago. The money is currently still on different CEXes. Initially, I used Kraken to ramp up money, which worked really well. Unfortunately, I can’t recommend Kraken anymore. They did some really f**ked up shit in the EU and Germany with authorities, plus I know people where they locked the account because they transferred more than 1k EUR in cryptocoins.

Has anyone of you successfully cashed out FIAT money from CEXes? Which bank(s) would you recommend? I read about traditional banks (like UBS, Migrosbank, cantonal banks) being more strict and often asking for documents / proofs. I’ve got nothing to hide, but I want to minimize the hassle of providing transactions and searching for documents from several years ago.

If the question was already answered in another thread, I’m happy if someone can point me to the right resource.

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Most banks will ask for previous tax return statements if the amount is high.

As you said , there is nothing to hide, so I assume all the tokens were reported in previous tax returns

I don’t think anything else will be asked.

P.S -: I don’t have crypto cash out experience. But simply when you move fiat money from one country to another , sometimes such review can happen.

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If it’s a mostly one off, don’t overcomplicate, Kraken > Bank. Kraken will not bother with anything but the bank eventually will when >100k CHF. You have to be ready to explain how you made that money.Don’t over do it but always follow up on what they are asking for. At the end of the day, they just have to document it. They will not freeze your funds, the worst that can happen is that they ask you to leave for another bank because you’re not fitting the “risk profile”. But something like this would only happen after years of transferring large sums regularly and only if you have more than something like 30% of your net worth tied to crypto.

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All tokens were reported in previous tax returns. Last year, tax authorities started to also ask for all transactions being made. That was not the case before 2024 - you just had to show them the different tokens on different CEXes.

Define high. 1k, 5k, 50k, 500k? That’s why I wanted to know if someone has experience with cashing out.

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Did you cash out successfully from Kraken? As I said in my initial post: a friend on mine (not living in Switzerland, but EU) had his whole account frozen because he transferred a little bit more than 1k in tokens from another CEX. It took him a lot of back and forth to get his account unlocked.

Side-note: I have removed all funds from Kraken mid of last year, when they had the weird story with DLT Finance going on. So I would first have to transfer tokens back from other CEXes or cold storage.

Side-note #2: EU is pushing hard for regulations. I think the 1k EUR amount is somehow linked with that (would have to check more details though)

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I was told above 100K

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Are you able to share which bank it was?

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ZKB … but I think this is standard practice

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I was speaking of banks, not Kraken. The story of your friend getting his Kraken account locked for 1k makes little sense. There was certainly another issue. Typically wrong documents submitted for KYC or funds linked to illicit activity.

Banks will like Kraken more because they have solid banking relationships, good track of record and a UK based entity. Other exchanges based in off-shore jurisdictions will raise more red flags.

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Maybe do some more research before making such statements: https://tradersunion.com/news/cryptocurrency-news/show/40227-kraken-tightens-verification/

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They are just following EU regulations, nothing more, nothing less.

https://support.kraken.com/articles/updates-to-crypto-transfer-procedures-for-uk-clients

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Lovely EU. Just wanting the best for their citizens.

BTT: I would love to hear from people who actually cashed out to a Swiss bank (in this case, not from Kraken)

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You can also use Relai, which is a swiss company. But even there: your bank can ask questions at any time as soon as a large transaction is made. Regardless of whether the money comes from crypto or not. And as you said, that shouldn’t be a problem in your case.

Relai Private is an exclusive service for investors looking to trade with large Bitcoin volumes (more than 100.000 CHF/EUR).

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Do they accept a digital copy of the blockchain :wink:

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I should add that the custodian bank for the purchase of cryptocurrencies is Swissquote, so I assume that Bitcoins are also purchased via the Swissquote platform.

An idea would be to transfer your Bitcoins to Relai for cash-outs and have Swissquote as your receiving bank?

Another solution would be to simply transfer your cryptos to Swissquote and then cash-out directly with them via your Swissquote account.

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No issues with cashout via Kraken (up to 50k CHF so far).

Ext. wallet > Kraken > PostFinance later neon later WIR within an hour. (in opposite direction same).

(Have to mention I’m shitcoin-free for several years now. Only BTC.)

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Don’t give them ideas :wink:

It might be dependent on the canton, but they did ask me for all transactions. I guess they’re having fun now checking 60+ page documents (I didn’t do active trading, just DCAing into BTC+ETH back then)

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That’s one of the things I’m considering. I also read that Swissquote is crypto-friendly, so it might be an option to open an account and just test it.

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Finally someone who did it. Thank you for sharing your experience. Much appreciated!

I’ll do some tests. Sending from other CEXes to Kraken (over 1k CHF amount) and check if it’s working.

Best thing you could do. If you compare performance of BTC against most other coins, it’s clear that “all are shitcoins except bitcoin”. My largest gains are also due to BTC.

If you’re not actively trading and just holding, BTC was the best choice (in hindsight)

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BTW. For anybody need to handle 100k+ transactions, I’d go with Relai Private (link). There’s also the new offering of Bitcoin-backed loans (for Private customers only).

I haven’t used it yet, so I cannot give a review on Private or loans. (I hope I never have to sell 100k+ BTC at once, I’d probably look to have the transaction directly in Bitcoin).