When using Altcoins.bg, you may be asked to provide information or documents regarding the source of funds. This is not an arbitrary requirement or an internal decision by the platform, but a legal obligation that all regulated financial and crypto services in Bulgaria and the European Union are required to follow.

 

The purpose of this article is to explain:

- what “source of funds” means

- why it is required

- what we may ask for

- why this is important for the security of all clients

 

What does “source of funds” mean

Source of funds means proving where the money or cryptoassets you use on the platform come from. This includes information on whether the funds originate from:

- employment income

- business activity

- investments

- sale of assets

- other legal sources

It is important to understand that we do not assess how you spend your money, but whether the funds have a legitimate and traceable origin.

 

The law and thresholds: when additional information is required

Altcoins.bg complies with the Bulgarian Anti-Money Laundering Act (AML Act) and the relevant regulatory framework of the European Union.

As part of our legal obligations and internal security procedures, the Altcoins.bg platform has introduced three main thresholds at which a declaration of source of funds may be mandatory.

The first threshold is when a client reaches more than EUR 15,000 in total turnover on the platform, at which point the client is required to provide a source of funds declaration.

The second threshold is a single order with a value exceeding EUR 5,000, regardless of total turnover.

The third case involves high-risk operations or the triggering of internal filters and risk-detection systems, in which additional verification of the source of funds may also be required.

 

It is important to note that a declaration alone is not sufficient to fully prove the source of funds. Therefore, in accordance with the law and good regulatory practice, we are required to request supporting information to confirm what has been declared. This may include documents such as employment contracts, proof of savings, bank statements, notarial deeds, rental agreements, or other relevant documents, depending on the specific case. This process is solely intended to ensure transparency, security, and protection for all platform users.

 

Why the law requires source of funds verification

Altcoins.bg operates within Bulgarian and European legislation, including:

- the Anti-Money Laundering Act

- EU regulations and directives on anti-money laundering and counter-terrorist financing

 

These laws require all licensed and regulated platforms:

- to perform KYC (Know Your Customer)

- to monitor unusual or high-risk transactions

- to request additional information in specific cases

We not only have the right to request such information – we are legally obliged to do so.

 

In which cases we may request source of funds information

Source of funds information may be requested in cases of:

- larger transaction amounts

- more frequent transactions

- sudden changes in account behavior

- operations that reach or exceed specific thresholds defined by law or regulation

- regulatory inspections or internal risk assessments

This is standard practice for all banks, investment firms, and regulated crypto platforms.

 

What we may request

Depending on the case, we may request:

- a descriptive declaration of the source of funds

- documents such as contracts, statements, proof of income

- other relevant evidence of legitimacy

The requirements are always proportionate and aligned with the law.

 

How this protects you

Source of funds verification is not directed against clients. It:

- protects the platform from abuse

- safeguards all clients

- prevents fraud, money laundering, and criminal activity

- ensures stability and trust

By not working with funds of unclear origin, the assets and positions of all our clients are protected from freezes, investigations, and other regulatory or systemic delays and complications. Keeping the platform clean is a top priority, based on the trust our clients have placed in us since 2017.

Trust is a responsibility

The trust our clients place in us is not just a privilege, but a responsibility that we uphold through strict compliance with laws and regulations.

We have all seen hundreds of platforms – we will not name names – that selectively complied with regulations. They all end the same way, and it is always at the expense of their clients. Altcoins.bg, on the other hand, has been operating for 8 years and continues to grow and evolve. Do not look for the “grey zone”. It will eventually cost you dearly. Procedures exist for your protection and the protection of your savings. They may not be pleasant and can sometimes feel “annoying”, but they are exactly what makes your life in the financial markets safer and protected from fraud.

Regulations eliminate the unprepared, the bad actors, and the schemers, leaving only those with the professionalism to run a real business, not a “scheme”. Your money, savings, time, nerves, and life are not a scheme and should not be held hostage to someone else’s wrongdoing. Work with licensed platforms, not offshore ones, to make your financial life easier and safer.