How to sell $300k+ Monero without origin of funds?
I bought it in the early days and moved several times due to security reasons. As a result, I'm unable to prove its origin. What would be a viable strategy to cash out?
Depends on your country. Consult a tax attorney, likely the situation would be that it counts as pure profit since you can't prove how much you initially spent to acquire it.
He may be able to prove he bought some, but then he traded back and forth and now has 1.27453x more. It's a tax problem cause he may have skipped declaring gains in 2016, or worse , went into stable coin in 2018 after taking a big hit without any profits to be able to cover the undeclared 2017 capital gains.... and so on
Don't move the funds without consulting that tax attorney. You may be able to get long term capital gains consideration if you can show its been sitting for long enough.
Tax is not a problem at all, even if I have to declare the whole amount as pure profit. My main concern is a failed SoF check, which could potentially lead to a block on my crypto.
Then my advice would be Don't seal it. Move it to something like Aave and take a "loan" out against it because then you don't have to deal with the capital gains tax.
Depending on how serious you are about "getting government approved", you can do a cross chain analysis on yourself and provide necessary view keys. To prove you bought 10K of Monero, just show that your bank account went down 10K and your Monero account went up 10K (at the past exchange rate). To show you exchanged 5K Monero for 5K Bitcoin, show that 5K Monero was transferred from your wallet at the same time 5K was added to your Bitcoin wallet. It's extremely cumbersome and requires that you have access to all wallets/accounts and is extremely invasive on your privacy, but it can be done if you really want to. Personally, I'd agree about the tax attorney. Often there's a way of "legitimising" grandfathered funds, but expected to be taxed to the max. Alternately, there may be a way of doing crypto loans so that you get the money without actually cashing out.
A crypto loan would be a similar situation, since I still need to prove the origin of the crypto in order to get the loan. I bought it with cash, so I can't provide any real proof that can fulfill a SoF check properly.
I'd suggest, keep it and spend it where you can without KYC shit. There's gonna be more ways for you to be able to spend it. If you urgently need the fiat, I guess go localmonero in parts.
Good to see that someone with a considerable amount succeeded in cashing out without issues. Despite that, the PayPal method sounds scary to me. What can I do if they claim a SoF document while blocking my crypto and I fail to pass the check?
It doesn't work that way with PayPal. You receive it and it's in your account. Then it just works like any other transaction. You can buy stuff with the balance, too. So there isn't a need to cash it out all at once. I kept like 40k in it for a long time till I sold it all and banked it in less than a day.
Just be sure to use the ACH as the fees are the worst part.
You can try to convert them to another cryptocurrency via exolix.com, there are no upper limits on the exchange, so a large amount will not be a problem. It is a privacy-focused service and you do not need to register or undergo KYC verification to make transactions.