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Cashing out crypto

  • 02-04-2018 10:35am
    #1
    Registered Users Posts: 5,205 ✭✭✭ Elessar
    Registered User


    Has anyone here cashed out a large amount of crypto?

    Lets say hypothetically all your coins moon in the next bull run and you now have €500k worth of crypto you want to cash out. How do you do it - and would there be any problems?

    I can only think of Coinbase - where you need to request higher limits. Assuming you get them (no guarantee), should you cash out all in one or over several withdrawals?

    And then the Irish banks - will they put a stop on your account if they suddenly see a €500k deposit? Would it get held in limbo until you can prove where you got it, would revenue get involved etc? I've heard of this happening in the US...

    So many questions.


Comments

  • Registered Users Posts: 318 ✭✭ h0neybadger
    Registered User


    I’m pretty sure all Irish banks are well aware of what Coinbase is, and if they see a large 500k deposit, they would be happy. After all, they use your money..

    We have a self assessed CGT system in Ireland. As long as you declare and pay what you should, there is no issues.


  • Moderators, Music Moderators Posts: 19,597 Mod ✭✭✭✭ Mr.S
    Moderator


    Every exchange has their own withdrawal limits and different verification requests are needed, most are quite clear about it.

    Eg Kraken has a 25k daily / 200k monthly withdrawl limit, so just work around the different limits and spread over different exchanges if needed.

    Your Irish bank will happily take whatever you deposit into it, now you can be sure that any irregular large deposits will be flagged with Revenue, but they won't put a hold on your account or anything. You'll probably get a call from your branch manager asking if you want money advice (ie save your money with us!).

    With deposits that large into an Irish account, you'd be pretty insane not to declare and pay capital gains tax.


  • Registered Users Posts: 5,205 ✭✭✭ Elessar
    Registered User


    From what I've read though some places are saying that banks will freeze the account, ask for source of funds and definitely flag it with revenue. I mean, there's nothing shady so I assume when you show them the transactions it will be fine - but what do I know!

    Some people even saying go to your bank and tell them you will be making a large deposit. Might be more for the US though...


  • Moderators, Music Moderators Posts: 19,597 Mod ✭✭✭✭ Mr.S
    Moderator


    Elessar wrote: »
    From what I've read though some places are saying that banks will freeze the account, ask for source of funds and definitely flag it with revenue. I mean, there's nothing shady so I assume when you show them the transactions it will be fine - but what do I know!

    Some people even saying go to your bank and tell them you will be making a large deposit. Might be more for the US though...

    With a deposit that large, it would be a good idea to tell your bank that it's incoming. It's irregular for most personal accounts, so it will stand out. And yes, Revenue will be aware, if they act on it, is another story. But you want to be ready if they do question it down the line.

    It's hard to say exactly what will happen, it's a case by case issue. But large deposits don't really cause your bank to freeze your accounts, that's basically what they're there for! They might question it, so that's why you should give them a heads up

    I wouldn't worry about it, you'd have more trouble trying to get the money off the exchanges.


  • Registered Users Posts: 318 ✭✭ h0neybadger
    Registered User


    Pay your due taxes and you will have zero issues. ;)


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  • Registered Users Posts: 2,072 ✭✭✭ ZeroThreat
    Registered User


    Pay your due taxes and you will have zero issues. ;)

    (Unlikely right now given the bearish crypto market), but if someone was cashing out at this point in time, it's possible that they may not have to pay any CGT until December, so seems a bit cheeky Revenue getting involved as soon as the money hits the bank.
    And even if the tax is due end of the year, you wouldn't be required to file the return until October 2019.


  • Registered Users Posts: 2,072 ✭✭✭ ZeroThreat
    Registered User


    Elessar wrote: »
    Has anyone here cashed out a large amount of crypto?

    Lets say hypothetically all your coins moon in the next bull run and you now have €500k worth of crypto you want to cash out. How do you do it - and would there be any problems?

    I can only think of Coinbase - where you need to request higher limits. Assuming you get them (no guarantee), should you cash out all in one or over several withdrawals?

    And then the Irish banks - will they put a stop on your account if they suddenly see a €500k deposit? Would it get held in limbo until you can prove where you got it, would revenue get involved etc? I've heard of this happening in the US...

    So many questions.

    Coinbase daily withdrawal limits are €10,000 ?
    If someone was lucky enough to have made €500k, would it take 10 weeks (ie. 50 working days) to move the lot out?


  • Registered Users Posts: 6,026 ✭✭✭ grindle
    Registered User


    ZeroThreat wrote: »
    Coinbase daily withdrawal limits are €10,000 ?
    If someone was lucky enough to have made €500k, would it take 10 weeks (ie. 50 working days) to move the lot out?

    Apply to have your limits increased, extra KYC bollocks.


  • Registered Users Posts: 2,072 ✭✭✭ ZeroThreat
    Registered User


    grindle wrote: »
    Apply to have your limits increased, extra KYC bollocks.

    Coinbase already have my passport details, bank details, residence, what else do they want drug tests and body cavity searches?? :D


  • Registered Users Posts: 6,026 ✭✭✭ grindle
    Registered User


    ZeroThreat wrote: »
    Coinbase already have my passport details, bank details, residence, what else do they want drug tests and body cavity searches?? :D

    Not sure if it's different for newer customers as I've had an account with them since 2013 but they wanted a bank statement and my passport from me for whatever reason, they'd never gotten them before so I'd presumed those must be the extra steps needed.
    Wouldn't mind an auld cavity search though - give us an update later and I'll see if I can blag one.


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  • Registered Users Posts: 318 ✭✭ h0neybadger
    Registered User


    You can just ask them to increase the daily limits.
    They upgraded mine a few times without any extra documentation.


  • Registered Users Posts: 6,026 ✭✭✭ grindle
    Registered User


    Now I'm suspicious.


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