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Topic: a (Read 1178 times)

legendary
Activity: 3066
Merit: 1147
The revolution will be monetized!
a
June 17, 2014, 02:15:25 PM
#4
I am wondering if there is possible future risk by using bitcoin mixing services. For example, say you have some coins that you bought legit, say through an exchange, and then sent them through a mixing service to anonymize them. Would there be a problem paying capital gains taxes in the future if you can't prove the origin of the coins?  Could they become tainted in the future if the origin can't be proven?  Could there be future regulation that could taint mixed coins, therefore bringing the value of your coins down?  Forgive me if these shouldn't be concerns but I was just thinking about these topics and would like to hear an expert opinion.
Hi,
You have some good questions. I'll take a shot at an answer.
I don't think a mixing service has an impact on your capitol gains. You are simply stating when you bought, and how much they have appreciated. You don't have to supply info on your coins. If you were audited you may be asked for more info, but if you paid it will all work out.
Some people have proposed the idea of "tainted" coins. In this scheme coins that are known to be associated with crime (and maybe mixers) become less valuable than clean coins. I seriously doubt that will happen. Almost no one is in favor of taint. It would destroy fungibility and some of the utility of BTC.  

I see no specific risk other than trusting the mixing service.
full member
Activity: 196
Merit: 100
June 17, 2014, 02:07:16 PM
#3
I am wondering if there is possible future risk by using bitcoin mixing services. For example, say you have some coins that you bought legit, say through an exchange, and then sent them through a mixing service to anonymize them. Would there be a problem paying capital gains taxes in the future if you can't prove the origin of the coins?  Could they become tainted in the future if the origin can't be proven?  Could there be future regulation that could taint mixed coins, therefore bringing the value of your coins down?  Forgive me if these shouldn't be concerns but I was just thinking about these topics and would like to hear an experts opinion.

I'm sure you'll get opinions. I doubt any will be "expert."

According to US law you are innocent until proven guilty. This doesn't always hold true, but for the most part I think you're safe (assuming you live in the US).
legendary
Activity: 4410
Merit: 4788
June 17, 2014, 02:06:52 PM
#2
mixing services advertised to clean drug funds are risky. after all if they steal the funds would you report it to police that you were using a micing service advertised as such.

instead just deposit your funds into a legit exchange like btc-e.com/bitstamp/mintpal etc and then just withdraw again. you wont get the same tainted coins back..
newbie
Activity: 6
Merit: 0
June 17, 2014, 01:56:43 PM
#1
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