How to provide proof of funds?

What is proof of funds, and why should I provide this information?

Proof of funds (POF) are documents that show the origin of your money or crypto assets used for deposits at LiteBit. It’s not so much about the location where the money came from (like your bank account) but how you acquired the money. For example, you have earned a salary by working. Or you inherited a sum of money.

We are fully aware that providing POF may be a boring chore, but we are legally required to do so. By monitoring funds (fiat or cryptocurrency) and their origin, we play an active role in preventing money laundering and other criminal or harmful activities. We appreciate your efforts and time to provide us with your documentation! 

Do I need to provide POF for each transaction I do?

We do have certain thresholds. If your transaction triggers a threshold, you will be notified and asked to provide proof of funds. That proof of funds request will be for a specific period or transactions and is mentioned in the information request email you have received from LiteBit.

What is accepted as proof for my EUR deposit?

For your POF documentation, we can accept the following kinds of proof:

In case the funds stem from your salary, pension or savings:

  • Payment slips, no older than 2 months and bank statements* of the incoming salary and/or;
  • Last year’s tax declaration, and/or;
  • Annual financial statement* accompanied by a description of your personal situation showing how these savings have been accumulated.

In case your funds come from the sale of real estate:

  • A notarized bill and either the bill of sale or deed of transfer and;
  • A bank statement* showing the sum received from your notary

In the case of an inheritance or gifts:

  • A notarial statement regarding the inheritance (for example, a certificate of inheritance), accompanied by a bank statement* showing the received sum of money.
  • Gift agreement explaining the nature of the gift and a bank statement* showing the deposit. 

Using loan and/or credit agreements

  • Loan agreement showing all contractual parties, signatures, and pages (as well as agreements with non-authorized lenders, such as family or own company), and;
  • Bank statements* show that the incoming transfer is from the lender's account.

Capital or business funds (dividend or withdrawal from company account)

  • The latest final annual accounts together with a business bank statement* which shows the transfer of money (that was used for the purchase of crypto) business bank account to a private bank account or, in the case of a sole proprietorship, the income tax return;

Sale of (company) shares

  • Proof of the sale of (company) shares (e.g. Share Purchase Agreement) and the incoming transfer visible on a bank statement*, or;
  • Overview of the transactions on your investment app or platform, plus the incoming transfer visible on a bank statement*.

Other investments like art or collectables

  • The full contract with information on both the buyer and seller, signed and dated.

*Please note that on all bank statements, the name (sender and receiver), date and amounts must be clearly visible.

What is accepted as proof for cryptocurrency deposits?

Crypto assets bought with platforms or exchanges other than LiteBit

  • Initial purchase receipts and bank statements showing the purchase/deposit of the initial investment and (if necessary);
  • Statement of trading profits, accompanied by documentation that can explain these profits (e.g. transaction history, showing at least the quantity and purchase and sale price);

Trading profits made on platforms or exchanges outside of LiteBit

  • Initial purchase receipts and bank statements showing the purchase/deposit of the initial investment and/or;
  • Transaction history, and;
  • Screenshots showing your profits, and;
  • Screenshot including your personal details like your account ID and name

Crypto earned through mining

  • Invoice of the purchase of mining hardware/equipment, showing your home address which should match the address registered to your LiteBit account, and;
  • Photos of the mining hardware along with screenshots of the platforms and programs used, and;
  • Bills relating to operating costs (e.g. electricity bills) that are addressed to your name, and;
  • Screenshots of your mining rewards and transaction history showing the crypto being transferred to your wallets including addresses and transaction-IDs, and;
  • If the coins from mining activities were also traded, screenshots of the transaction history will also be required. These must clearly show the receipt on the respective exchange as well as display the name of the account holder. Furthermore, all trades must be clearly recognizable and must not be mixed with trades from other coins.

Earnings from staking

  • Screenshots of the transaction history on which deposits, withdrawals, and rewards are visible.
  • Overview of wallet addresses and transaction IDs.

What rules should my documentation adhere to?

The documentation should be provided in one of these file extensions: .docx, .jpg, .png or .pdf. Documentation should be provided in English or Dutch, except for tax returns.

Can I still trade crypto while I’m in the proof of funds process?

Yes, you will still be able to trade crypto at LiteBit while gathering and verifying your POF documentation. Withdrawals to external wallets or your bank account will be temporarily disabled.

What happens if I cannot or will not provide POF?

Unfortunately, we will have to deactivate your account if you cannot provide us with sufficient POF documentation. However, to retrieve your funds at LiteBit, you may still need to provide POF documentation or else we cannot process your withdrawals even if you choose to close your account with us.

How long does the review take?

Once we receive all documents, we will do our utmost to review them as soon as possible. Please note that it may take 2-4 working days for us to review the documents. Of course, you can rest assured that we will treat your documents with the utmost care and in confidence.