How to Prove a Crypto Gift as Source of Funds in the UK
A gift letter explains that the transfer is a gift; it does not replace evidence showing how the donor obtained the crypto or cash.
Written by: CryptoBankStatement editorial team
Last reviewed:
Product documentation review only. No legal, tax, financial, immigration or banking advice.
Primary sources
- Thematic review of source of funds and wealth compliance — Solicitors Regulation Authority
- Compliance with the regulations and preventing money laundering Q&A — Solicitors Regulation Authority
- AMLG11630: Source of Funds and Source of Wealth — HM Revenue & Customs
To document a crypto gift, identify both the gift and its underlying source. The recipient may need a signed gift letter, donor identity details, evidence showing how the donor originally acquired the crypto, records of the on-chain transfer, and exchange and bank statements if the gift was converted to pounds. The exact documents depend on the solicitor, lender and transaction.
Do not relabel your own crypto proceeds as a family gift to avoid explaining their origin. If a third party contributes funds, the reviewer may examine that person's source of funds in much the same way as the recipient's. A wallet statement can organise a supported public-address leg, but it does not certify the donor, recipient or lawful origin.
Two questions the evidence must answer
- Was the transfer genuinely a gift rather than a repayable loan or disguised arrangement?
- How did the donor acquire the crypto or money that was given?
Document stack for a gift of crypto
- Ask the solicitor or lender for its required gift-letter wording
- Provide the donor identity and relationship information requested
- Document the donor's original source, such as salary, savings or asset sale
- Add exchange records showing the donor's crypto purchase where available
- Provide wallet statements for the relevant donor and recipient addresses
- Identify the gift transaction hash and date
- Add exchange and bank records if the recipient later converts the gift to pounds
Example gift trail
- Donor salary and bank records show how the original savings accumulated
- Exchange statement connects the donor's bank payment to the crypto purchase
- Donor wallet statement shows receipt and later transfer of the asset
- Transaction hash connects the donor address to the recipient address
- Recipient records show the later sale and GBP reaching the recipient's bank
Why a UK bank transfer does not finish the enquiry
The SRA says source-of-funds checks should establish where the money came from, including when a third party contributes. Its thematic review describes a gifted-deposit case where showing that the parent had enough money was insufficient because the origin of those funds was not examined.
How CryptoBankStatement can help
CryptoBankStatement can produce a PDF and CSV for a supported donor or recipient address, showing dated on-chain activity and blockchain references. Preview first, then unlock both files for £3.99. Generate separate statements for separate addresses and label the gift transaction in the wider evidence pack.
Important limitations
CryptoBankStatement is not a bank, accountant, solicitor, tax adviser, immigration adviser or financial adviser. This content is not legal, tax, financial, immigration or banking advice. The receiving institution decides what documents it accepts. Gift, mortgage, tax and inheritance consequences depend on the facts. Confirm the required gift wording and evidence with the solicitor and lender before moving funds.
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Frequently asked questions
- Is a signed gift letter enough for gifted crypto?
- Usually not by itself. It can confirm the nature of the gift, but the reviewer may also need donor identity, the donor's underlying source-of-funds evidence, wallet records and the fiat trail.
- Should the donor or recipient generate the wallet statement?
- Use statements for the addresses relevant to the trail. If the crypto moved from the donor's self-custody address to the recipient's address, both address histories may be useful. Each statement covers one selected address.
- What if the donor sells the crypto and gifts pounds instead?
- Keep the donor's wallet history, exchange sale record, bank statement receiving the proceeds, gift transfer and recipient bank statement. The pounds do not erase the earlier crypto source.
- Can I repay the donor later?
- That may make the arrangement a loan rather than a gift and can affect lender and solicitor requirements. Describe the arrangement truthfully and obtain appropriate legal advice.
- Does a wallet signature prove who made the gift?
- A valid signature can show control of an address at a point in time. It does not establish legal identity, beneficial ownership, intent to gift or lawful source of funds by itself.