Documenting the transaction, not just the transfer

A transaction recorded on the blockchain allows certain technical data to be accredited, but it does not explain its economic cause on its own. For a company, it is relevant to be able to relate the movement of cryptoassets with the documentation that justifies the right to collect or the obligation to pay.

Contracts, invoices, purchase orders, transport or delivery documents, commercial communications and proof of execution can be part of the transaction file. The documentation required will depend on the specific business, but it should make it possible to reconstruct in an understandable way what obligation exists, who satisfies it, what its amount is and why this means of payment has been used.

This preparation becomes more relevant when an exchange, a financial institution or a provider subsequently intervenes to request information on the economic origin of the assets. Compliance in cryptocurrency payments should not be improvised only when a requirement appears.

Source of funds, traceability and compliance controls

In an international operation, different review planes can coexist. It is one thing to prove the economic cause of the payment and another to analyze the route of the cryptoassets, the addresses used and the possible risks associated with the transaction.

There may also be procedures for identifying customers and counterparties, beneficial ownership checks and requests for information related to the origin of the funds. When the transaction has characteristics that require a specific analysis in terms of prevention, IN DIEM can coordinate this review with its anti-money laundering area.

The information provided to the different operators must be consistent. A description of the commercial transaction that does not coincide with the invoices, amounts, counterparties or movements executed can generate new requests for documentation and make the process more difficult.

Crypto exchanges and service providers in business operations

A company should not approach a corporate transaction in the same way as an occasional purchase and sale carried out by an individual. It is necessary to check which entity will actually provide the service, what operation it supports for business customers and what corporate procedures must be completed.

In the European Union, the activity of crypto-asset service providers is subject to the MiCA framework. In Spain, once the transitional regime has ended, it is particularly important to verify the qualification of the provider that is going to provide the service. The European regulations on crypto-asset transfers also add information and traceability obligations in the transactions to which it is applicable.

This page deals with the specific scenario in which crypto assets are used within a cross-border payment. Other issues, such as the regulation of providers, tokens, blockchain projects, Web3, or digital asset-based services, are developed more broadly in the general area of cryptocurrency legal advice.

Receiving the cryptocurrencies may not complete the collection

For many companies, the ultimate economic objective is not to hold cryptoassets. If an invoice is denominated in euros and the customer satisfies it with cryptocurrencies, there may be a second phase: transforming the value received and incorporating it into the company’s ordinary treasury.

The conversion of cryptocurrencies to euros for companies should be considered before receiving the assets when it is foreseeable that it will be necessary. The existence of a wallet with a balance does not in itself guarantee that the corporate conversion process is prepared or that the chosen operator already has all the documentation it will require.

The same applies from the perspective of the payer. If you need to acquire or transfer a certain crypto-asset to satisfy an international obligation, the amount due, the equivalence used, the costs of the transaction, the time of payment and the documentation that allows you to subsequently demonstrate its correct execution must be coordinated.

What happens if the payment has already been made

The query can also arise when the cryptoassets have already been sent or received. In this scenario, the starting point is the existing situation: contract and invoicing, wallets used, transactions executed, counterparty, available documentation and the purpose to be achieved.

If an exchange or provider has requested additional information, it is advisable to first identify what it is reviewing and prepare a response consistent with the documentary reality of the transaction. When the objective is to subsequently convert assets to EUR, it should also be considered which corporate procedures remain pending.

Legal advice on international payments with cryptoassets

IN DIEM may intervene before the transfer or when the operation is already underway. Depending on its characteristics, the assistance may include the review of the contractual relationship, the analysis of counterparties and jurisdictions, the preparation of the documentary file, issues of origin of funds and compliance, the review of the operators that must intervene and the accompaniment of requirements related to the operation.

When an additional technical aspect is necessary, the legal action can be coordinated with professionals specialized in traceability and operations with digital assets. The purpose is to maintain a consistent explanation from the commercial obligation that gives rise to the payment to its receipt and, where appropriate, its final conversion.

In business transactions of significant amounts, preparing this journey before transferring assets allows you to detect in advance which legal, documentary and operational aspects need to be resolved, instead of analysing them separately when the funds are already in motion.