Buying a Home with Cryptocurrency Funds — What You Need to Know

Cryptocurrency is becoming a common way to build wealth, but when it comes to buying or selling property, it can make the process more complicated. Conveyancers are now required to carry out extra checks whenever money comes from crypto even if you’re a legitimate investor.

This guide walks you through what happens, why these checks exist, and how you can prepare to make your property purchase or sale run smoothly.

Before You Instruct a Conveyancer

Be upfront early.

When you contact a conveyancer, tell them immediately if any part of your purchase funds comes from cryptocurrency whether that’s Bitcoin, Ethereum, or any other digital asset.

Why this matters:

• It lets your lawyer plan for the necessary anti-money laundering (AML) checks.
• It prevents last-minute delays when funds are transferred.
• It builds trust and transparency from the start.

Ask your conveyancer:

• Do you have experience handling crypto-related transactions?
• What documentation will you need from me?
• How early should I convert my crypto into pounds (GBP)?

The Documents You’ll Need

When funds come from crypto, you’ll need to provide a paper trail showing where your money originated, how it moved, and how it arrived in your bank account.

Personal identification

• Passport or driver’s licence
• Proof of address (utility bill or bank statement)
• For companies: details of shareholders and beneficial owners

Evidence of your cryptocurrency holdings

• Screenshots or PDF statements showing your exchange accounts (Coinbase, Binance, Kraken, etc.)
• Transaction history showing purchase, transfers, and conversions
• Public wallet addresses used (with links to blockchain explorers showing transactions)

Proof of conversion into pounds (£)

• Bank statements showing when and how crypto was sold and fiat funds deposited
• Receipts or trade confirmations from your exchange
• Dates of transactions clearly showing where the money came from

Source of Wealth information

This explains how you came to have crypto in the first place.

• Did you buy it with savings?
• Did you earn it through work, mining, or staking?
• Do you have tax returns or records confirming gains?

Tip: The more detail you provide, the faster your conveyancer can complete their checks.

Understanding the Checks (and Why They Exist)

Your conveyancer must comply with the UK Money Laundering Regulations 2017 and the Proceeds of Crime Act 2002. These laws require them to check that property transactions are not being used to launder money.

Because crypto can move anonymously between wallets and across borders, it attracts extra scrutiny. Your conveyancer will therefore look at:

• Where the crypto was traded: regulated exchanges are safer than peer-to-peer transfers.
• Whether any “mixers” or “tumblers” were used: these services blur the transaction trail and are high-risk.
• Jurisdiction: exchanges or wallets in high-risk countries will require enhanced checks.
• Timing: funds converted to GBP right before completion may appear suspicious.

If any red flags appear, your conveyancer must investigate further or even delay completion until they are satisfied.

Enhanced Due Diligence (EDD)

If your transaction is considered high-risk, your conveyancer will perform Enhanced Due Diligence, which may include:

• Asking for more detailed transaction logs or wallet histories
• Commissioning a blockchain analytics report to trace transactions
• Verifying whether any wallets you’ve used are linked to criminal or sanctioned entities
• Asking you to confirm the identity of any third parties involved

This isn’t about accusing you of wrongdoing  it’s about satisfying legal duties and protecting both you and the firm from risk.

Red Flags That Delay or Stop a Transaction

Here are the main issues that cause delays in crypto-funded property purchases:

🚩 Funds arriving directly from a crypto wallet (not via a bank account)

Law firms generally cannot receive crypto directly into their client accounts. Funds must be converted to pounds first.

🚩 Unregulated exchanges or crypto ATMs

For example, in February 2025, Olumide Osunkoya was sentenced to four years in prison for running an illegal network of crypto ATMs that processed over £2.5 million. These kinds of transactions are considered very high-risk. 

🚩 Mixers or privacy coins (like Monero or Zcash)

These intentionally hide transaction trails. If your funds came through them, your lawyer may have to refuse the transaction.

🚩 Overseas exchanges without KYC (Know Your Customer) checks

If the platform didn’t require ID verification, expect closer scrutiny or requests for alternative proof.

🚩 Inconsistent explanations of source of wealth

“I just made some money online” won’t be enough — you’ll need dates, records, and evidence.

Recent Cases Showing Why Checks Matter

Case 1: The £5 billion Bitcoin seizure

In September 2025, a woman named Zhimin Qian (aka Yadi Zhang) pleaded guilty in London to laundering billions in stolen funds through crypto.

• Authorities seized 61,000 Bitcoin (worth over £5 billion) — the largest crypto seizure in history.
• The money came from a massive Chinese investment fraud and was later used to try to buy UK property and other luxury goods.
• Investigators traced the funds through thousands of wallets before freezing them.
  
• Lesson: Even huge sums of crypto can be tracked and seized — authorities now have powerful tools to trace digital money.

Case 2: Illegal crypto ATMs

In early 2025, the Financial Conduct Authority (FCA) secured the UK’s first conviction of someone operating unregistered crypto ATMs.

• Olumide Osunkoya’s company, GidiPlus Ltd, set up cash-to-crypto machines without approval.
• They processed millions in anonymous cash transactions.
• The judge called them “little more than money-laundering machines.”
  
• Lesson: If your crypto was obtained through unregulated ATMs or cash-for-crypto services, it will trigger major AML red flags.

How to Keep Things Smooth and Legitimate

Here’s how to make sure your property transaction goes smoothly if crypto is involved:

Convert early
Sell your crypto and move it into your UK bank account well before completion  ideally months in advance.

Keep your records organised
Download your exchange history, transaction receipts and wallet logs now. Your conveyancer will thank you.

Use reputable exchanges
Stick to well-known, FCA-registered platforms that follow KYC rules. Avoid peer-to-peer swaps or anonymous platforms.

Avoid third-party transfers
Funds should come from your own bank account, not from friends, family, or “crypto partners”.

Allow extra time
Expect the AML checks to take longer — build this into your completion timeline.

Stay open and transparent
Answer questions promptly and provide evidence — it speeds up verification.

Frequently Asked Questions

Q: Can I buy a house directly with Bitcoin?
Not realistically. Most conveyancers and banks require pounds (GBP). You will need to convert your crypto to cash first.

Q: Will my conveyancer refuse to act if I mention crypto?
Not necessarily — but they must apply stricter checks. The key is honesty and cooperation.

Q: Do I have to pay tax on my crypto before using it for a purchase?
Yes, if you’ve made a gain. HMRC treats crypto like property for Capital Gains Tax, so speak to an accountant before selling.

Q: Can authorities track my crypto transactions?
Yes. Blockchain records are permanent and increasingly easy for law enforcement to analyse.

The Bigger Picture

Cryptocurrency is no longer a fringe technology  it’s part of everyday finance. But with innovation comes responsibility.

Lawyers and regulators are not trying to stop crypto buyers from purchasing homes; they are making sure that digital wealth is legitimate, traceable and clean.

If your crypto journey is legitimate, transparency will protect you.

Provide clear evidence, use regulated channels, and stay patient — you’ll get your keys just like any other buyer.

Quick Reference: Crypto Property Purchase Checklist

Step	What You Need to Do	Why It Matters
1	Tell your conveyancer early that funds come from crypto	Allows time for AML checks
2	Provide ID and proof of address	Required by law
3	Show exchange account details & trade history	Verifies where funds originated
4	Prove conversion to GBP with bank statements	Shows money passed through regulated system
5	Avoid mixers, unregulated exchanges, or ATMs	Reduces AML risk
6	Keep clear records	Essential for audit trail
7	Be patient and transparent	Builds trust and prevents delays

Final word 

Crypto may be new, but the principles of safe conveyancing haven’t changed:
Know your money, prove your money, and document your money.

By working hand-in-hand with your conveyancer, being transparent, and using regulated exchanges, you can enjoy the benefits of your digital wealth without unwanted surprises when you buy your next home.