Proof of funds for individuals
A proof of funds or proof of source of funds (POF or POSOF) is a document or a collection of documents showing the origin of financial resources which you use for fiat deposits on M2. Proof of funds also includes information concerning the origin of your crypto-assets which have been deposited on M2.
Tip: Please note that proof of funds does not refer to the location of the funds (e.g. bank account), but instead refers to the reasons as to why you have access to the money (e.g. “I have earned this money through job X and saved it up over time frame Y. Furthermore, you will be able to find proof of its origin here.”).
Accepted proof for fiat deposits:
- Salary, pension (savings)
- Tax declaration of last year (in combination with a bank statement or other information);
- Bank account statements showing that the funds in account come from an explainable, logical source;
- Sale of real estate or other possessions
- Notarized contracts (e.g. deed of transfer or notarial statement) and bank statements with the incoming payment.
- Inheritance or gifts
- Inheritance tax return or notarial statement regarding the inheritance (e.g. certificate of inheritance) accompanied by a bank statement of this transfer (e.g. sale of a house or receipt of the customer' s share of the inheritance);
- Gift tax return, an agreement or letter form the donor explaining the nature of the gift, and a bank statement showing the deposit. The customer's name, date, and amounts must be clearly visible.
- Loan and credit agreements
- Loan agreement showing all contractual parties, signatures, and pages (as well as agreements with non-authorized lenders, such as family or own company), and;
- Bank statements show that the incoming transfer is from the account of the lender.
- Capital of business funds (dividend, loan)
- - Dividend tax return, or, resolutions of the general meeting of shareholders (declaration of dividends) and private bank statements of the incoming transfers on which the customer's name, the company's name, date, and amounts must be clearly visible, or;
- - Private bank statements of the incoming transfers on which of the customer's name, that of the company, date, and amounts must be clearly visible;
- Sale of (company) shares
- Proof of the sale of (company) shares (e.g. Share Purchase Agreement) and the incoming transfer visible on a bank statement, or;
- Overview of the transactions on an investment platform and the incoming transfer visible on a bank statement.
- Other objective and independent documents
Accepted proof of cryptocurrency funds:
- Crypto assets purchased on other brokers and/or exchanges;
- Bank statements of initial investment and/or invoices that prove a purchase (e.g., OTC purchases).
- Explanation of the trading profits accompanied by documentation (screenshots) that could explain these profits (e.g. transaction history, which shows at least the quantity and purchase and sale price).
- Trading profits that have been made on other brokers or exchanges;
- Screenshots of the transaction history displaying the profits and the customer's account ID, and name.
- Income from services (e.g. affiliate income or other services);
- A detailed description of the given service.
- Invoices for services that are paid for using cryptocurrencies. Names, addresses, contact details, and information of the businesses involved, as well as their legal documents and VAT number.
- Cryptocurrency addresses of both the sender and recipient and Transaction ID (Hash) and screenshots of customer's wallets showing the realized income.
- Bank statements showing receipts and transactions.
- Screenshots of the customer's account prove he is an affiliate.
- Screenshots of the transaction and payout history.
- Explanations regarding the origins of the cryptocurrencies used in the payout process.
- Initial Coin Offering (ICO) and Token Sale
- In case of token sale, a Simple Agreement for Future Tokens (SAFT) is required.
- In the case of an ICO, the full name of the ICO and the associated project's website must be visible.
- Transaction history, which proves the purchase and payment of the token (wallet addresses and transaction ID).
- Bank statement, if purchased using fiat.
- Confirmation emails displaying the purchase.
- Mining;
- Receipts proving the purchase of mining hardware, where the address of the buyer (customer's registered name at M2) and seller can be seen. The hardware must be sent to the address of the name which is registered on M2. If the customer's address has changed in the meantime, please provide evidence that you have lived or worked at the aforementioned address at a given time.
- Photos of the mining hardware and screenshots of the platforms and programs used.
- Bills relating to operating costs (e.g. electricity bills) that are addressed to the name registered under the customer's M2 account.
- Screenshots of mining earnings and rewards.
- Screenshots of the customer's transaction history showing the movement of coins to and from wallets, displaying the wallet addresses and transaction IDs.
- If the coins from mining activities were also traded, screenshots of the transaction history will also be required. These must clearly show the receipt on the respective exchange as well as display the name of the account holder. Furthermore, all trades must be clearly recognizable and must not be mixed with trades from other coins.
- Staking (Masternodes);
- Screenshots of the transaction history on which deposits, withdrawals, and profits are visible.
- Screenshots of the transaction history showing the payouts to M2.
- Wallet addresses and transaction IDs.
- Airdrops
- Screenshots of the transaction history, where deposits, as well as withdrawals to M2, are visible.
- Wallet addresses and transaction IDs.
- Lending and Liquidity Pools
- Transaction history (wallet addresses and transaction IDs). It must be clear where the customer deposited the assets as collateral, the amount, and where the collateral used comes from.
Acceptable POSOF for Business Accounts
- Audited Financials
- Tax Return (last two taxable years)
- Bank or Brokerage Letter Stating Assets
- Standardized statement from a digital asset exchange
- Proof of balance at crypto exchange(s)
*Note: Some cash funding methods may require additional documentation.
The documentation provided must meet the following conditions:
- Must be in the following file extensions: .docx, .jpg, .pdf, or .png;
- Bank statements, pay slips, and other documents must refer to the period in which the transactions took place on M2;
- All transaction details must be clear and legible;
- Must be in English, with the exception of tax returns;
- Your name, the date of the statement, and the dates of the transactions must be clearly visible;
- Although you may cover sensitive information, both incoming transactions (your earnings) and outgoing transactions (your deposits on M2) must be clearly visible.
Disclaimer:
It is highly recommended to conduct thorough research prior to making any financial decisions. Please note that this article's purpose is solely for educational purposes and the author and the organization, M2, do not influence the reader's investment or trading choices.
Kareem comes with 19 years experience in Operations and Customer experience with extensive global exposure in various fields and fintech. In 2019 Kareem discovers the crypto world in depth and becomes an enthusiast while he believes crypto is the future and financial freedom. Joined M2 in 2022 and is leading the Global Customer Experience for the exchange.
