Hi everyone,
I’m posting this message today because I need advice on a situation I’m currently facing, which is a bit sensitive.
I’m based in France and this was my first significant source of income , I had no declared earnings before this., and around 8–9 months ago, I launched a service that performed quite well. Through this activity, I managed to generate around high six figures (nothing illegal) purely in crypto, without ever converting fiat into crypto (no bank account or credit card was used to buy crypto).
Over those 8–9 months, I spent about $40k–$50k, mainly through neobanks (with full KYC), by converting crypto into fiat. As time goes on, I’m increasingly concerned about possible tax or banking issues related to these fiat transactions.
My goal:
I simply want to legitimize the fiat I’ve already cashed out, so I don’t run into trouble later.
What I was planning to do:
Back in November, I followed the trades of a friend, and ended up making $20k in one month. I still have the full trade history from the platform I used (which I accessed without doing KYC).
My plan was to declare €20k of net capital gains, which would justify part of the fiat I’ve spent (the $40–50k total).
I believe this would help me stay clean, and avoid drawing unnecessary attention from tax authorities — unless I’m wrong, and I’d love your input on that.
Technical details:
- My crypto is mostly held in cold wallets, which were never directly linked to my neobank accounts.
- All the fiat transactions to neobanks came from a non-KYC exchange, with no direct trace back to my cold wallets.
- I have never purchased crypto using fiat via any traditional bank or card.
I don’t plan to cash out the remaining funds anytime soon — I’m currently holding them in spot.
I’m not trying to avoid my responsibilities — I just want to find the cleanest and least risky way to regularize my situation.
My questions:
Is it a good idea to declare only the $20k of net gains, and leave everything else aside for now?
Would this kind of declaration trigger wider investigations or audits into my other holdings?
Is there a recommended way to present this to the tax authorities, or a regulatory strategy I should follow before leaving the country (I'm planning to move abroad in a few months)?
Thanks a lot in advance for your help
I’m open to any insights or real-world feedback — I truly want to handle this the right way.
I’m posting this message today because I need advice on a situation I’m currently facing, which is a bit sensitive.
I’m based in France and this was my first significant source of income , I had no declared earnings before this., and around 8–9 months ago, I launched a service that performed quite well. Through this activity, I managed to generate around high six figures (nothing illegal) purely in crypto, without ever converting fiat into crypto (no bank account or credit card was used to buy crypto).
Over those 8–9 months, I spent about $40k–$50k, mainly through neobanks (with full KYC), by converting crypto into fiat. As time goes on, I’m increasingly concerned about possible tax or banking issues related to these fiat transactions.
My goal:
I simply want to legitimize the fiat I’ve already cashed out, so I don’t run into trouble later.
What I was planning to do:
Back in November, I followed the trades of a friend, and ended up making $20k in one month. I still have the full trade history from the platform I used (which I accessed without doing KYC).
My plan was to declare €20k of net capital gains, which would justify part of the fiat I’ve spent (the $40–50k total).
I believe this would help me stay clean, and avoid drawing unnecessary attention from tax authorities — unless I’m wrong, and I’d love your input on that.
Technical details:
- My crypto is mostly held in cold wallets, which were never directly linked to my neobank accounts.
- All the fiat transactions to neobanks came from a non-KYC exchange, with no direct trace back to my cold wallets.
- I have never purchased crypto using fiat via any traditional bank or card.
I don’t plan to cash out the remaining funds anytime soon — I’m currently holding them in spot.
I’m not trying to avoid my responsibilities — I just want to find the cleanest and least risky way to regularize my situation.
My questions:
Is it a good idea to declare only the $20k of net gains, and leave everything else aside for now?
Would this kind of declaration trigger wider investigations or audits into my other holdings?
Is there a recommended way to present this to the tax authorities, or a regulatory strategy I should follow before leaving the country (I'm planning to move abroad in a few months)?
Thanks a lot in advance for your help
I’m open to any insights or real-world feedback — I truly want to handle this the right way.
