What compliance actually wants
The compliance officer reading your letter has one job: to be able to write in their file that the money on your account comes from a legitimate, documented origin — and that the story makes sense for who you are. They are not looking for a long emotional letter. They are looking for a traceable chain:
- Origin — how the money was originally earned or received (salary, business, sale, inheritance…).
- Path — how it moved from there to the exchange (bank account → card/transfer → exchange, or another exchange → withdrawal → this exchange).
- Plausibility — the amounts fit your occupation, age and history.
- Evidence — each step is supported by a document, with names, dates and amounts that match.
The structure that works
- Header: date, the exchange's compliance team, your full legal name exactly as in your KYC, account UID or registered email.
- One-paragraph summary: you are the sole owner, the amount in question, and the sources in one sentence.
- Numbered sources: one short paragraph per source — who paid, when, how much, into which account.
- The path to the exchange: which accounts and transfers the money went through, with dates.
- Specific transactions: if the exchange asked about particular deposits, address each one by date, amount and hash/ID.
- List of attachments matching the numbered sources.
- Declaration that the information is true and you'll provide more if needed.
Our free source of funds letter generator builds exactly this structure for you.
Documents for each type of source
| Source | Typical documents |
|---|---|
| Salary | Employment contract or employer letter, payslips, bank statements showing salary in and the transfer out |
| Business income | Company registration, tax returns or financial statements, business bank statements, dividend or distribution records |
| Savings | Bank statements showing the balance building up over time and the transfer to the exchange |
| Sale of property or vehicle | Sale agreement, proof of prior ownership, bank statement showing the proceeds |
| Inheritance or gift | Will or probate/notarial document, gift agreement, bank statement showing receipt |
| Loan | Loan agreement and statement showing the disbursement |
| Earlier crypto investments | Statements and trade history from the earlier platform, withdrawal records with transaction hashes, original fiat purchase records |
Always attach a valid ID and recent proof of address as well — the same documents used for your verification.
If the money came from crypto
This is where most letters fail. "I bought bitcoin years ago" isn't enough; compliance needs to see where the fiat came from originally and how the coins reached this exchange. Show:
- the original purchase (statement from the first exchange plus the bank transfer that funded it);
- gains over time (trade history export, portfolio statement);
- the withdrawal to your own wallet and from there to this exchange, with transaction hashes;
- for self-custody wallets: that the wallet is yours (some exchanges accept a signed message or a small test transfer).
If coins passed through P2P trades, DeFi protocols or mixers, explain each hop honestly — on-chain analytics will show them anyway, and an unexplained hop looks worse than an explained one.
Mistakes that get letters rejected
- Inconsistency: different amounts or dates in the letter, in the questionnaire and in the documents.
- Third-party money: funds sent from someone else's bank account or wallet without explanation and proof.
- Partial documents: cropped statements, missing pages, screenshots instead of official PDFs, no names visible.
- Vague statements: "savings", "trading profits", "my business" with no figures or proof.
- Story changes: giving a different explanation in a second message. The first answer becomes the baseline.
- Edited documents: never alter a document. It ends the review immediately and can lead to permanent closure.
After you submit
Submit only through the official support or verification channel and keep copies of everything. Reviews typically take from a few days to several weeks. Follow up politely and briefly if you haven't heard back within the time the exchange stated — one message with your ticket number, not ten. If you receive follow-up questions, answer exactly those, consistently with what you already sent.
Frequently asked questions
How long should a source of funds letter be?
Usually one to two pages. Long enough to cover each source with dates and amounts, short enough to read in two minutes. Detail belongs in the attached documents.
Can I use a template?
Yes, as long as every sentence is true for your situation and matches your documents. Use our free generator as a starting point and edit it.
What if I can't document part of the funds?
Say so openly, explain why, and offer the best alternative evidence (for example, statements showing a pattern of regular savings). Hiding gaps usually backfires.
Should I write in English?
English is usually best, as most exchange compliance teams work in it. Key parts of documents in other languages may need a translation.