Short answer. Exchanges ask for source of funds to meet anti-money-laundering rules. A good answer traces the money from its origin to the exchange: salary, savings, a property sale or earlier crypto trading, supported by bank statements and transaction records. Explain gaps plainly and make sure every name and amount matches your account.
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Source of funds versus source of wealth
Source of funds is where the specific deposit came from. Source of wealth is how you built your overall assets. Exchanges may ask for either or both.
Documents that usually work
- Bank statements showing the transfer to the exchange
- Payslips, tax returns or business accounts showing income
- Sale documents for property, a business or investments
- Exchange histories and wallet records for crypto coming from elsewhere
- Inheritance or gift documents where relevant
Tracing crypto deposits
If the deposit came from a self-custody wallet, show how that wallet was funded: the earlier exchange withdrawal, the purchase records, or mining and staking records. A simple table with dates, amounts, transaction IDs and sources helps the reviewer.
Common mistakes
- Sending unrelated documents in bulk
- Names or addresses that do not match the account
- Explanations that change between messages
- Edited screenshots instead of official statements
FAQs
Why did the exchange ask me now and not at signup?
Reviews are triggered by activity: deposit size, patterns or changes in regulation.
Can I refuse?
You can, but the exchange may keep the account restricted or close it.
Is a screenshot of my bank app enough?
Exchanges often prefer official PDF statements. Provide what is requested.
Official sources