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Comment by kube-system | Hacker News Reader

That's a fair opinion, but the law conflicts with that opinion in many places: https://en.wikipedia.org/wiki/Know_your_customer#Laws_by_cou...

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KYC doesn’t mean you have to interrogate your customer about how they earned their money.

It does, actually. FinCEN does not fuck around.

Source: just finished renewing my AML training

It depends on the jurisdiction and the particular transaction.

In the US, for instance:

> financial institutions covered by the final rule must take reasonable steps to: [...] (3) determine the source(s) of funds deposited into the private banking account and the purpose and expected use of the account;

https://www.fincen.gov/fact-sheet-section-312-usa-patriot-ac...

> financial institutions covered

being key...

Yep. For instance:

> banking institutions;

It does. I was cautioned that due to FINcen "you cannot buy a house with crypto", luckily all of the gains I had made were tracked by a "sufficiently reputable" platform that it wasn't an issue.

Wait, was that for a mortgage? I bought a house outright with cash that had been moved from Gemini (US crypto exchange) to Schwab less than two weeks before and the title company never had any questions about it.

Throwaway for obvious reasons.

Yes, sorry, I should have specified, that is what my lender said for banking operations. I presume you can buy a house with cash from crypto.

You are correct. What you describe is called proof of source of funds and also should be required for high value transactions.

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