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The nightmare of proving 'source of funds' for crypto gains
It's increasingly clear that banks are tightening the screws on any significant inflow from crypto, even if it's been legitimately realized and taxed. I've heard too many stories recently about accounts being frozen or closed because the 'source of funds' documentation for what amounts to $BTC gains isn't deemed sufficient. What specific, practical steps are people taking beyond just tax returns and exchange transaction histories to preemptively satisfy these increasingly aggressive bank inquiries? This isn't about avoiding taxes, it's about not having your capital stuck in limbo for months. Any best practices for communicating with banks before a large transfer, or what kind of evidence has actually worked for others?
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It's almost as if they want us to keep our gains under a mattress, then question the source of our mattress fiber. Have you tried tracing every single Satoshi from purchase to sale, just for good measure?