Buying Property (Or Any Other Asset) With Cryptoassets

The verification of the source of these funds has become a significant issue. Many of us are now trading in cryptoassets, and consequently, we receive regular enquiries from solicitors requesting a report on their clients' cryptocurrency holdings, where their clients wish to rely on them to fund a property purchase.

This can be done either by realising cryptoassets and converting them into cash (fiat) proceeds to cover part or all of the purchase price, or by the direct use of cryptoassets to purchase the asset, not settled in fiat currency, but as an agreed amount of cryptoassets. Buyers must be prepared for enquiries regarding the source of these funds.

We will investigate whether the funds or cryptoassets used for the purchase have themselves been acquired using funds from legitimate sources. This will require an analysis of transactional data from wallets, crypto exchanges, and bank statements from financial institutions.

This could include:

• obtaining evidence that the source of the funds used to invest in cryptoassets is from legitimate sources
• verifying that the original funds were indeed invested in cryptoassets
• confirming that the cryptoasset investment has generated the funds intended for the purchase of the property
• obtaining evidence that the proceeds are deposited in the account used to provide the purchase money

Should you require assistance in performing the necessary source of funds analysis, please contact Raymond Davidson by emailing raymond.davidson@davidsonsforensic.co.uk or calling 07719 192257.