Topic: Converting bitcoin to fiat without problems - page 2. (Read 473 times)

To do this without any task from either government of your bank suspense since some of these banks also have bitcoin regulations, you need to sell your Bitcoin the same way you bought it which is through p2p.

P2P can be physical the same way you buy your BTC, and it can be through the use of centralized exchanges that offers p2p service.
If you don't have someone to trade with physically, you can download a centralized exchange like Bybit to be using them as your market just to buy and sell your coins with them; don't leave your coins in the exchange.

I have never made a large withdrawal so it never occurred to me to make transactions gradually as you said. But now that i think about it your idea is not a bad idea. And one more thing regarding Binance P2P, make sure to choose a seller/buyer who already has a good reputation, my friend was once cheated there even for a small money.


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This depends on the country you come from and what is obtainable there. There are countries where Bitcoin is banned, in that case users have to device means of converting Bitcoin to fiat which they might not be willing to share in public due to crackdown by the authorities. Furthermore, there are countries where Bitcoin is not banned but there is no tax on Bitcoin. In these case, there will be several ways of converting to fiat including using CEX, agents, and even p2p transactions. Finally, for the countries where there is crypto taxes, it is up to the individual to report his earnings to the tax authorities to be able to calculate the taxes and pay accordingly. Even when p2p means of converting BTC to fiat is available, the user can still fill BTC as source of funds to be able calculate the appropriate taxes.

Right to the point.

Banks should be viewed as businesses interested only in making a profit from us, and not in controlling financial transactions and the origin of funds. Any bank is also under the yoke of the regulator at the end of the chain “central bank (under the influence of the regulator) -> any bank” and has neither the desire nor the ambition to completely monitor your wallet.

And if it’s illegal, will take everything.

Therefore, need to be prepared for the regulator’s request for the origin of funds through the banking layer.

No bank as a bank is interested in where your money comes from. The question of the origin of the money does not come from the bank but from the government. It is the government that wants to have insight into your finances and (if everything is legal) to charge you as much tax as possible.

I made a researched on this before and if I'm not mistaken, we can only get taxed in our crypto hodlings if we are profiting. So, simply having or buying the BTC first is exempted to it. There is also a threshold/minimum amount, for us to get charged by a tax and I think it starts at $3k. I'm not only sure if the same rate applies in other countries.

If we can't prove the price where we bought our coins, then we are supposed get charged and it's not a zero sum but it can be higher than our recommended tax pay amount. This is why it's important to track everything and prepare them, just in case we are required by our law to pay a tax. Consulting a lawyer about this matter as you said, is much better as they have more experience and knowledge when it comes to this things.

The limit depends on the level and my withdrawal limit for the exchange is the same as the daily withdrawal limit so that large withdrawal amounts need to be done several times on different days.

Correct. This is understood by all crypto activity actors. As I said before, we cannot avoid taxes and tax officials or bank officials no longer arouse feelings of suspicion when there are people whose transaction history comes from crypto exchanges.

In another thread the OP talks about having more than $20,000 in bitcoin. If it's around that amount, he shouldn't have much of a problem, although it depends on where he is tax resident. Normally, if he can't prove the price at which he bought it, he would be charged 0 cost, and taxed on the total. But if it was more money or considerably more, he would have to be careful because he could be accused of tax evasion. It is best to consult a lawyer.

I sold my Bitcoin and transferred it to a bank account as needed. That is a normal solution for Bitcoin holders who want to get their fiat. But if the money is big, it looks like you need a third party who can help you transfer it.

If you use an exchange and provide the facility to send money to your bank account, you can use it. As long as the money you send to your bank account is not too large, the bank will not ask about the origin of the money. If they see the money from the exchange, they will probably ask for other documents supporting the transaction.

The bank will be suspicious if a transaction is too large. Therefore, you should send the money by dividing it over several transfers. However, the bank will not be too suspicious if the account has frequently carried out transactions with large amounts of money.

The right solution. Instead of having to use strategies a and b, we just have to be busy and spend money over and over again, where the final goal is how BTC can be converted into fiat and entered into our personal accounts without many questions from any party.

Also, make your transactions staggered not one time big time transaction. If you can make it on a daily/weekly basis, much better. I have had the same thoughts before and what I did was I converted my btc to fiat at different time intervals, not on a daily basis though. Use exchange platform that is reputable, and if you will use your local exchange, better make sure you submitted legit docs. Don't give them reason to freeze your account for some carelessness.
Try also to check binance p2p, there are so many sellers/buyers who have high limits. But again, don't do it one time. Intermittent transaction is much better to avoid those prying eyes.

Just move your bitcoins to a CEX that is regulated & legal in your country and convert them into fiat from there. CEXs that are affiliated with the government will never have problems with taxation, because every transaction you make is counted in tax, that's what happens in my country.

That’s the work of p2p exchanges and you can do that without having to have a risk thought of not receiving your money after you’ve initiated the sell of your bitcoin in the p2p platform. I have more trust to use those exchanges to trade my bitcoin for fiat than using any of the other methods of conversion that is available. While selling your bitcoin you’re at less risk to lose your money because the person you’re selling to have to send the money to your account and you confirm before releasing the coins for them on the platform.

About bank managers asking for the source of your money, it all depends on how your bank account is on their platform if youve registered as a student, worker or business man and the limit set in your account. They will only be suspicious if you do more than what your account warrants you to do. Like me, I’ll have my ways to get them persuaded where the money came from, although I don’t think anything of such has happened to me or will happen in the future.

Bitcoin to fiat transactions are taxable income in many jurisdictions.  Not reporting that stuff can really backfire too, with fines and stuff from the taxman.  If this is really your concern, I suggest you avoid using banks in that case.  They gotta report suspicious activity and deposits to watch for money laundering and and bad things.  So if you want to stay under the radar with crypto, avoiding the banks could be smart.

I have never made a large withdrawal by exchanging 1 BTC to fiat but what I know is that Indodax sets a daily withdrawal if I'm not mistaken 250,000,000 IDR if you want to make a higher withdrawal then you can increase the limit again.

But I also don't know for all countries how the government enforces it, but for our country there will be no question because exchanging BTC to fiat is very common in the sense that many people do it without the need for banks to ask where this is from because the government has supervised and legalized it as a commodity asset.

That could happen because the tax system in your country is not strict. However it is still possible that one day later you will be asked to provide a tax report based on the money that goes into your bank account.

That is only a short-term solution to avoid taxes if you are still using your bank account to receive that money.

It seems this will depend on each country's policies and regulations. So maybe what you have to understand first is, what are the crypto regulations in your country? And what about taxes?

I will explain this in my country, maybe this will be different from what is in your country.

1. First, I will explain about the regulation here

In my country, all crypto exchanges must be registered with our country's authorized institute, namely Bappebti. If not, then it is said to be illegal and will cause problems and cannot be accessed freely. And all these exchanges will be directly integrated with various government regulations, including taxes, crypto that must be listed, reports, and so on.

2. About tax in crypto

So, next is related to tax. So, all exchanges registered in Indonesia must simultaneously charge tax for all users for every transaction on the exchange, amounting to 0.11% VAT and 0.10% PPh. So, all automatic transactions will also be subject to tax by directly deducting them from the transaction. So, there is no further problem when carrying out crypto transactions from a regulated exchange because it is already taxed directly on the exchange.

So what happens if you suddenly withdraw a very large and different amount from usual to the bank? Will it be a problem?

Usually, the bank will confirm the transaction, because it is suspected to be an unusual transaction and of course the bank will suspect the existence of this transaction. Because of this, the bank will immediately freeze the account and call the customer to come and confirm where the money came from. Then, after confirming and being able to prove that the money comes from crypto transactions carried out on local exchanges licensed by Bappebti which are automatically taxed, and the bank approves the reason, then it can be taken and won't cause any more problems. So, so far, as long as we follow the rule and regulation here, it won't be any big problem. Just follow the ways and rules.  

Source, read more here:
https://indonesiabusinesspost.com/insider/indonesia-mulls-tax-adjustment-for-crypto-transactions/
https://indonesiacrypto.network/blog/complete-guide-to-crypto-regulations-in-indonesia-all-you-need-to-know-in-2024
https://finance.detik.com/moneter/d-6120578/apakah-bank-curiga-kalau-nasabah-tiba-tiba-dapat-uang-dalam-jumlah-besar

You want to know about a very simple matter and I am telling you this matter in a simple way. You must be aware of P2P transactions, if you don't have a complete understanding of this transaction, you can watch one of these tutorial videos on YouTube. I hope you will have a complete idea about this by watching any video related to P2P transactions on YouTube. You can use Binance or Ku-Coin exchange to make such transactions. These two exchanges will definitely provide you with P2P transactions. First verify the account, then if you want to convert your BTC paper money, go to the funding option and add your bank account or mobile banking number to your exchange. After doing these things well, you can find a good buyer and sell your dollars. In this case, for your information, you will first receive your money and then release your dollars

When converting my Bitcoin into Fiat, I used to do it on our local crypto wallet which allows us to easily purchase and sell crypto into our local currency.
But now I am doing it on centralized exchange or trading, to be more accurate I am using binance to trade my crypto into cash everytime that I wanted to.
I never really experience any tax other than transaction fees in cryptocurrency.
If you are concern about being monitored or tag on ALMA, then don't send a huge amount in a single transaction try to do it separately with small amounts.

I don't think there's a way to make sure of this as there is no from a to z guidelines available public.

At best, you could only try to mitigate the risks like diversifying the funds to different banks. This may be anecdotal but in my place, its typically the high volume traders getting flagged. You may wanna check on crypto friendly or neutral companies as well.

I also think banks could differ depending on someone's country so perhaps check in with your locals? in my place, I've seen some speculation with folks that banks which were embroidered with stuff like money laundering previously tend to be more strict with the checks. -- but im assuming this could apply in many places as well 🤔

IDK about taxes. depends on how competitive your tax agents are i guess.