Cryptocurrency and Conveyancing: Your Frequently Asked Questions
Cryptocurrency is increasingly common in everyday finances. We regularly help conveyancing clients who hold (or previously held) crypto as part of their overall wealth, and it often prompts understandable questions about what it means for a property transaction.
Below are the questions we are asked most often, along with clear, practical answers to help your matter progress smoothly.
1) What is cryptocurrency?
Cryptocurrency is a form of digital asset. People typically buy “coins” through an online provider or exchange, then store them in a digital wallet. Crypto can be held as an investment, transferred to others, or traded—similar in concept to moving funds between accounts, but using blockchain-based systems rather than traditional banking rails.
2) Why does cryptocurrency matter in a conveyancing transaction?
Conveyancing involves moving large sums of money and is subject to strict Anti-Money Laundering (AML) regulations. If crypto forms part of your wealth or the funds being used for your purchase, we may need additional information to understand:
- how your funds were acquired (Source of Wealth), and
- how the transaction is being funded (Source of Funds).
This is a standard part of regulated conveyancing work and helps protect clients, firms, and the wider property market from financial crime.
3) I’m not paying with crypto—why are you asking about it?
Even if you are not using crypto directly for your deposit or purchase funds, crypto can still be relevant where it forms part of your overall wealth position or where funds have moved between crypto and bank accounts.
In many cases, the key question is not “are you paying with crypto?” but “is crypto part of the story of how your funds were accumulated or transferred?”
4) Why can crypto lead to extra checks?
Crypto can require additional scrutiny because transactions can be fast-moving and may not always have the same type of third-party oversight as traditional bank transfers. From an AML perspective, this can make it harder to evidence a complete audit trail unless we collect the right documentation early.
The requirement to undertake checks is regulatory—so even a small amount of crypto activity may mean we must ask more questions.
5) What documents might you need from me?
While every matter is different, common requests include:
- Evidence of your current crypto holdings (e.g., a wallet or exchange statement showing balances)
- Crypto transaction history (showing deposits, trades, transfers, and withdrawals)
- Bank statements showing the movement of funds into the crypto provider/wallet (and, where relevant, back out again)
The aim is to show a clear, consistent audit trail from your bank account to the crypto platform/wallet and back, where applicable.
6) What if I’ve used more than one exchange or wallet?
This is very common. If you’ve used multiple providers, we may need information from each one to build a complete picture. Where funds have moved between wallets or exchanges, it’s helpful to provide:
- transaction IDs/hashes (where available), and
- screenshots or statements that show the corresponding transfers on both sides.
The more complete the chain, the fewer follow-up questions are usually required.
7) What if I no longer hold crypto?
That’s still fine—many clients have sold crypto some time ago. What matters is being able to demonstrate how the funds were obtained and where they went. We may still ask for:
- historic crypto account statements and transaction history, and
- bank statements showing sale proceeds being received.
8) I bought crypto years ago. What if I can’t access old records?
If records are difficult to obtain, let us know as early as possible. Some providers allow you to export transaction histories even if the account is old, and bank statements can sometimes be retrieved through your bank. If information genuinely cannot be accessed, we can discuss what alternative evidence may be available and whether it is sufficient for regulatory purposes.
The key is timing: early disclosure gives the best chance to avoid delays.
9) Will crypto-related checks delay my transaction?
They don’t have to—but they can if information is provided late or if documentation is incomplete. The best way to keep things moving is to:
- tell us upfront that crypto is involved (even historically), and
- provide wallet/exchange records and bank statements early.
This allows our onboarding and compliance checks to run alongside the legal work, rather than interrupting it later.
10) Are you saying crypto is “not allowed”?
No. Many clients hold crypto for legitimate investment reasons. The issue is not whether crypto is “good” or “bad”—it’s that regulated conveyancing requires us to understand and evidence the source and movement of funds to meet AML obligations.
11) What questions should I expect to be asked?
We may ask practical questions such as:
- When did you purchase the crypto and how was it funded?
- Which provider(s) or wallet(s) did you use?
- Have you transferred crypto between wallets or third parties?
- When (and how) did you convert crypto back into GBP, if relevant?
- What proportion of your overall funds relates to crypto activity?
These questions help us document a clear narrative supported by evidence.
12) What can I do right now to make this easier?
If crypto is part of your financial picture, the following steps usually help:
- download/export your exchange or wallet transaction history,
- gather bank statements showing deposits to and withdrawals from crypto platforms, and
- make a simple timeline of major events (e.g., purchase dates, large transfers, sale dates).
If you provide this at the start, we can often reduce follow-up requests and keep your transaction progressing smoothly.
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