You sold €25000 of XRP on Bitstamp and triggered a SEPA Instant withdrawal to your Sparkasse account. The money arrives in seconds. A few hours later, your relationship manager calls. "Mr Müller, we noticed a €25k inbound from a payment processor — can you tell us a bit about it?"
This is normal. Here's how it works.
What the bank actually sees
When SEPA money lands, your bank sees:
- Sender: The CEX's legal entity name. For Bitstamp it's "Bitstamp Limited" with a UK or Luxembourg banking partner. For Kraken it's "Payward Inc." or local entity.
- Reference: The CEX's withdrawal reference + sometimes "crypto sale" / "trade settlement". Varies by CEX.
- Amount + currency.
- Sender's IBAN/BIC.
The bank's automated systems flag transfers above thresholds (typically €10000) for human review. Crypto-related senders are sometimes auto-flagged regardless of amount.
When the bank asks questions
Common questions, with the right way to answer:
Q: "What's the source of this money?" A: "I sold cryptocurrency on Bitstamp/Kraken/[your CEX]. The funds came from [salary saved over X years / investment of €X in 2017 / inheritance / business income]."
Don't over-explain. Brief + factual is best.
Q: "Do you have documentation?" A: "Yes — I have the CEX trade history showing the sale, the original purchase records, and tax documentation if relevant."
Send the CEX's exported PDF transaction history. Bitstamp, Kraken, etc. all offer this in their dashboards. The PDF is acceptable to most banks.
Q: "Why are you receiving crypto-related transfers regularly?" A: "I trade cryptocurrency as part of my investment strategy. I've held an account at [CEX] since [year]. Happy to send historical statements if helpful."
If you're trading regularly, set this expectation upfront. Most banks will then categorise you correctly and ease up on the question frequency.
What NOT to say
- Don't lie. Banks have their own AML obligations. If they catch a false statement, the consequences are far worse than the original question.
- Don't volunteer extra information. "I bought crypto from a guy on Telegram" or "I mined this myself" both open follow-up questions you don't want.
- Don't get defensive. Banks ask because they're regulated to ask, not because they suspect you specifically.
When the bank freezes the incoming
Worst case: the bank holds the deposit pending investigation. This happens roughly 1 in 100 crypto-related transfers above €10k. Process:
- You receive a letter/email asking for documentation.
- You provide CEX trade history + purchase records.
- Bank's compliance team reviews; takes 5-15 business days.
- Bank releases the funds OR rejects them back to the CEX.
If rejected, the funds return to the CEX (minus a small SWIFT-recall fee in some cases). You can re-attempt with a different bank or wait for the issue to be resolved.
Picking a crypto-friendly bank
In the EU as of 2026, crypto-friendly banks include:
- N26 (Germany — has native crypto integration)
- DKB (Germany — accepts crypto deposits routinely)
- ING DiBa (Germany/Belgium/NL — generally tolerant)
- Revolut (multi-country — built-in crypto trading)
Less crypto-friendly:
- Traditional Sparkassen / Volksbanken (Germany — older relationships, more friction)
- Commerzbank (mixed reports)
- Older Austrian/Italian banks (generally cautious)
If you're doing >€20k/month in crypto-related transfers, consider opening a relationship with a crypto-friendly bank for that specifically.
The "two-bank" strategy
A pattern that works for many users:
- Main bank: Your salary + bills account. Don't run crypto money through this.
- Crypto bank: A second account specifically for CEX inbound + outbound. N26, Revolut, or similar. Crypto-friendly + low/no fees.
Move money between the two via SEPA Instant (free, instant) when needed. This isolates your "everyday banking" identity from your crypto-trading patterns.
The wallet's Off-Ramp section can be configured with both bank IBANs so you can route differently per CEX.
End of course
You now understand:
- The 5-step off-ramp pattern + Gopnik's banking surface
- SEPA + SWIFT mechanics, fees, cutoffs
- FATF Travel Rule from the off-ramp angle (not just the privacy angle)
- KYC at crypto banks — basic + EDD, what they ask, how to navigate
- What your bank sees + how to communicate when they ask
This unlocks banking.301 (Banking & Off-Ramp Pro — €10k/day cap) and eventually banking.401 (The Treasury Wraith — uncapped + treasury-management features).
The exam is 28 of 35 questions; pass at 78%. Good luck.