Never had an issue with Kraken. Never had an issue with Swiss banks either. They ask for details because of the money laundering laws, which is reasonable. Just provide proofs of investments, i.e. when you bought the crypto. I noticed that calling the bank beforehand also helps smoothing up the process.
If you have cashed out in another currency, it would be worth opening an account in this currency or converting before the transfer. The banks apply a bad conversion rate.
Short update. Did a test transfer of about 1400 USD from another CEX to Kraken (using XLM - best for transferring from other CEXes due to speed and low fees). XLM arrived really fast, I changed to EUR and cashed it out using Instant SEPA (and could see it immediately in my EUR bank account). It was done in a matter of a few minutes.
Will do some more test transfers also from other CEXes directly as well.
I got cautious with Kraken after their massive fuckup last year with DLT Finance in Germany. That’s when I withdrew all funds. First try after one year with the cashout was good. Let’s see…
See Why do we ask for Source of Wealth or Source of Funds Documents? and Proof of source of funds (POSOF) for German clients
There’s a rolling monthly window, the first threshold is around 25k EUR. For crypto deposits directly from other exchanges it may be impossible to get signed messages (since you don’t hold the keys). It might be better to first send to your own wallet (with signing feature) and deposit from there. If you exceed 100k EUR in a month, there will be forms to fill out for sure.
I am a bit confused about this whole thread.
If the money/asset is already declared and known to authorities, what’s the advantage of moving the cash proceeds from sales of coins in small increments?
What exactly is the problem in sharing tax returns with one bank one time and be done with it?
Is this something to do with cash coming from Crypto sales specifically? Is it about costs?
It’s not about moving in small increments, but to test cash-outs first.
You won’t share tax returns, but most probably they will ask when you initially bought the crypto. Some of those transfer I made 6 or 8 years ago, then either moved to cold storage or converted to XLM/XRP to move to other CEXes, then buy different coins etc. If some banks / CEXes are giving you less stress about proving what exactly you did, it’s much easier. That’s why I asked for real-life experiences.
Thanks for sharing.
I made transfers >100k CHF from Kraken to each: UBS, Postfinance and Revolut.
Only UBS caused me some headache, they were a lot more intrusive and eventually kicked me out. Postfinance and Revolute have been asking question/documenting but so far it’s been reasonable.