Questions and answers

One clear answer per question, on source of funds, stolen crypto, expert reports, tax and regulation. Written by Advisorn in Chiasso, Switzerland.

Source of funds

10 questions

What is a source of funds report for crypto?A signed document tracing crypto from its origin to the bank, so compliance can verify and accept the funds.What does a bank require to accept funds coming from crypto?Identity, proof of wallet control, acquisition records and a clean on-chain trail to the transfer.How do you document crypto bought before 2018 (or many years ago)?Rebuild the chain from the earliest provable event using the blockchain plus surviving emails, bank and tax records.How do I prove the origin of crypto if the exchange has closed?Combine your own records, insolvency claim data and on-chain withdrawals from the exchange's known wallets.How do I document crypto from mining, staking or airdrops?Prove the activity that generated the coins, then trace each reward to the wallet sending to the bank.Source of funds vs source of wealth: what's the difference for crypto?Source of funds explains this transfer; source of wealth explains how you came to own it all.My bank blocked the transfer from a crypto sale: what now?Ask in writing what the bank needs, answer with consistent documents and do not move the funds elsewhere.What to prepare before moving crypto proceeds to a bank?Talk to the bank first, sell through a regulated exchange in your name and have the documentation ready.How do you document funds that went through DeFi, NFTs or bridges?Decode each smart-contract step on-chain and reconcile amounts in and out, chain by chain.How does a crypto company (exchange, fund, start-up) open a bank account?Show a clear business model, regulatory status, a working AML programme and the origin of all capital.

Stolen funds and fraud

10 questions

Can stolen crypto be recovered?Sometimes, in part: when funds reach a token or exchange that can freeze them, and you act quickly.What should you do in the first 24 hours after a crypto theft?Secure what is left, keep the evidence, get the funds traced and send freeze requests, then file a complaint.Can Tether freeze stolen USDT?Yes: Tether can block USDT at an address, usually on law-enforcement requests or well-documented reports.Can Circle freeze stolen USDC?Technically yes, but Circle usually acts on requests from authorities or courts, not on victims' reports alone.Can an exchange identify who received stolen crypto?Usually yes, through its client checks, but it discloses the identity mainly to authorities, not to victims.How do you report a crypto theft to the police?File with the police or prosecutor where you live, with a timeline, transaction hashes and a tracing report of where the funds went.How can you recognise a crypto recovery scam?Guaranteed results, unsolicited contact and upfront fees in crypto are the clearest warning signs.What is pig butchering, and can the funds be traced?A long investment fraud built on trust and a fake trading platform; the funds can usually be traced on-chain.Can stolen crypto be traced after a mixer or a cross-chain bridge?Bridges can usually be followed; mixers break the direct link, so results become probabilities.How long does tracing stolen crypto take, and what do you get?A first report usually takes days, not months: it maps where the funds went and comes with freeze requests.

Tax

4 questions

How are crypto assets declared for tax in Switzerland?Crypto goes in the list of securities at its 31 December value; gains are usually tax-free, income is taxed.How are crypto assets declared in Italy (quadro RW, capital gains tax)?Holdings go in quadro RW with a wealth tax on their value; gains are taxed as 'redditi diversi'.I never declared my crypto: how can I regularise?Many countries let you correct past omissions with reduced or no penalties, but only if you act before the tax authority does.The tax authority asks where my crypto comes from: what should I do?Read the request carefully, respect the deadline, involve your tax advisor and answer with documented evidence.

Inheritance and family

2 questions

How do you document and transfer crypto received by inheritance?Secure access, inventory the wallets, value them at the date of death and document their origin for banks and tax.How are crypto assets traced and split in a divorce or separation?Identify the wallets, value them at the relevant date, trace transfers and classify what is personal or shared property.

Expert reports and proceedings

5 questions

Is a blockchain analysis valid evidence in court?Generally yes; its weight depends on method, transparency and the expert's credibility.What does a party-appointed expert do in a crypto case?The party expert analyses the blockchain evidence for one side, checks the official analysis and files a technical report.How do you challenge the other side's blockchain analysis?Verify every transaction, test the attributions and tracing method, and show where conclusions exceed the data.How do blockchain expert reports work in Swiss proceedings?The authority appoints the expert; parties comment on the choice and questions, and can file their own reports.How do you find crypto assets in an insolvency or bankruptcy?Start from the debtor's records, trace on-chain to exchanges, then use the insolvency officeholder's powers to freeze and recover.

Regulation and compliance

9 questions

Does a crypto business in Switzerland need to join an SRO (e.g. VQF)?Yes, if it acts as a financial intermediary on a professional basis and holds no FINMA licence.When does a crypto business need a FINMA licence?When it takes deposits, deals in security tokens, runs a DLT trading venue or manages collective assets.Who needs a CASP licence under MiCA?Any legal person providing crypto-asset services to clients in the EU on a professional basis.Does MiCA apply to crypto companies outside the EU?Not to their business at home, but yes as soon as they actively serve clients in the EU.What is the Travel Rule and who must apply it?The duty for crypto providers to send and check originator and beneficiary data with each transfer, set by FATF Recommendation 16.How are tokens classified in Switzerland (payment, utility, asset tokens)?FINMA looks at the token's economic function: payment, utility or asset, with hybrids possible.What must an AML programme for a crypto business contain?Risk assessment, KYC, monitoring, Travel Rule, sanctions, reporting, records, training and independent review.What is KYT (know your transaction) and when is it required?On-chain screening of transfers for risk; in practice required for any regulated crypto provider.Do you need OAM registration or a MiCA licence to offer crypto services in Italy?Today a MiCA authorisation (from Consob or another EU regulator) is needed; OAM registration alone no longer suffices.

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