Does a crypto backed loan suffice as SoF ?

[JohnnySilverhand]

Hi,

Does anyone know if or what kind of SoF is required for a crypto based loan.

Say I receive cash on my account (eu bank) from a crypto backed loan, can I just show the loan as SoF ?

 

[Sols]

Depends on who's asking and why they're asking.

 

[Martin Everson]

I second that. It does depend on who is asking, how much the loan is, what loan is for and if the bank is crypto friendly or not etc etc.

If bank is crypto friendly and you can provide a loan agreement with terms and conditions, clear identification of lending party and contact details etc etc then this may fulfill the asking parties tick box exercise for SoF paperwork. It will cause problems if the loan or lending party is not plausible.

 

[BlackVault]

If you were asked by a financial institution,maybe (and I stress, maybe). But if you were questioned by any kind of authority, I’d say definitely not. That said, you should absolutely provide more details.