Converting bitcoin to fiat without problems - page 3.

Fiatless

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Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

It will mainly depend on the crypto laws of your country. Some countries have laws that mandate you to state the source of your income and also pay tax from it. Other countries may not ask where the funds come from but you need to pay tax for it. While other nations are tax-free when it comes to income from crypto. In my country, the government will be asked for the source of the money if it is above $10,000. So dividing the money into lesser funds while exchanging it will make you escape such scrutiny.

When it comes to tax, it will depend on the platform you use to exchange your Bitcoin. If you use a well-established centralized exchange, you may be subjected to tax because they will report your transactions to the government. But if you use a decentralized exchange or through physical P2P like when you bought it, you may avoid tax. But if you are legally mandated to pay tax, there is no need to avoid it. Taxes are an important source of revenue for the government, and without them, basic amenities might not be provided or maintained.

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Quote from: tajimas on May 25, 2024, 07:15:22 AM

The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?

The best means to achieve this successfully is in doing it through a decentralized p2p exchange, but making use of a centralized exchange is not ideal enough for us to be able to achieve maximum privacy or evade government regulations, you don't have to specify on the information on your transaction to be crypto transaction in other for you not to be announcing yourself its such you're doing,

Quote from: tajimas on May 25, 2024, 07:15:22 AM

The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

It is not difficult to achieve, if you want to make physical p2p transaction, then i will advise that you make use of an escrow service provider that us reliable, while the online one is the decentralized exchange i have to recommend.

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Quote from: tajimas on May 25, 2024, 07:15:22 AM

How did you do it so that the tax authorities and the bank manager would not question where the money came from?

I don't really know how this applies to all countries, but from my experience of changing Bitcoin and other crypto coins, the tax has been set on the exchange at a percentage.
Let's assume we change 1 BTC for $70k. $70k if exchanged into fiat currency is a large amount that will make the bank suspicious. This can be done in stages [3 to 4 times].
Taxes, we cannot avoid them because all exchanges are under the regulation of legally registered government-owned entities.

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Well, the thing is that if the amount is too much then expect that your account will be locked or questioned, because they might question where did you ge the money so instantly and quickly, well its a common measure so that banks or any platform where you can place your money will know where did you get the money and if its legal or illegal, in my country there are this kind of scenario where in if suddenly you place a very huge amount of money in a bank account or any platform where you can put your money, then expect that they will questioned you and will ask for validation to know if the money came from legal means, because as we know money laundering or any kind of moneh manipulation is can be done in crypto so authorities are being more cautions and strict when it comes to sending and transacting huge amount of money, I still dont experience holding or converting from crypto currency in fiat currency that the amount will be too much.

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Quote from: CryptoHeadlineNews on May 25, 2024, 10:32:41 AM

I think the answer to this question should vary from one county to another, because here in Nigeria, bank accounts are sub divided into more than 3 categories, that is;
1. A kid's bank account, which could accumulate a highest amount from. #10 to #100,000 Naira, with a daily transaction limit of #10,000.
2. A teenager's bank account, which could afford amount from #100,000 to #1million Naira, and lastly
3. An adult or business bank account, which could accumulate from #1million and above (i.e unlimited).

Banks have stopped using the terms; Kid's, teenager and adult account because some people who opened up their accounts when they were teenagers forget to go for upgrades on their account to increase their bank limits when they turn into adults.
Banks now call them "tiers" or "levels". As someone who has a bank account you should know the account level your account is on so that you know the restrictions and limits on your account. If your account is not on a level high enough to accept a big amount of money and you do not want problems you can simply just get someone trusted who has a company account or an account with a higher level or tier so that you can receive your money without any bank challenges or problems.
@OP, the person you are trading with also has to be careful with the description they use in the transaction.

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Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?

I think the answer to this question should vary from one county to another, because here in Nigeria, bank accounts are sub divided into more than 3 categories, that is;
1. A kid's bank account, which could accumulate a highest amount from. #10 to #100,000 Naira, with a daily transaction limit of #10,000.
2. A teenager's bank account, which could afford amount from #100,000 to #1million Naira, and lastly
3. An adult or business bank account, which could accumulate from #1million and above (i.e unlimited).
So if by mistake you happen to send money to either a kid or teenager's bank account which has limitations of a certain amount it's likely to accumulate, then in that scenario, you are likely to be asked to come do account upgrade. Which is why here, it's always good to send huge sum of money to these business or corporate bank account. So as to avoid bank managers questioning where the money came from. And this may vary from country to country, so you just have to figure out what works in yours and apply it.

Quote

The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

Fiats are unlike Bitcoin that could be checked on the Blockchain, which is why it's always good to use p2p market place, where you only release your coin after you have confirmed payment.

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Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

I think think I understand your question very well Op. It's through that there're certain amount of monetary transactions that may occur in a bank account which could attract the attention of the banks management. Literally it's usually huge amount of money that may have not been a usual to that very bank account.
This is a very critical issue but some of us may not know about it. I've heard of so many bank accounts being frozen by the authority because a transaction made of it seems strange and suspicious. So while some governments are being against bitcoin, it's a risk of Investors to sell such huge amount of bitcoin and get the money sent to their bank accounts because it could trigger monitoring of the account which the investors would be questioned. And in such case, the Investor could be in trouble.
So Op, if the government isn't against bitcoin, I don't think if it'd be a problem if you tell the bank the source where the money came from while the clue to escape that questionable fact by the bank is for the Investor to trade the amount of the huge bitcoin sequentially without running the transaction at a one spot.

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Quote from: Crypto Library on May 25, 2024, 07:35:21 AM

Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts

Have you know anything about P2P(peer-to-peer/ person-to-person) trading on exchangers? Like Binance?
I used to do P2P trading on Binance and Kucoin for buying and selling cryptocurrency, Basically I don't but directly bitcoin with fiat currency firstly I buy USDT by fiat then transfer them to spot and buy ever I want. You can also check about P2p trady here-

HOW TO USE BINANCE P2P

Quote

How did you do it so that the tax authorities and the bank manager would not question where the money came from?

I don't know about other what they do but in my country crypto aren't legalized yet but for p2p trading I haven't face any issue till yet, but I have followed some tricks to skipping them.
I thing the peoples of your locals can say more about this, you can also ask to your local peoples in your local board.

Quote

The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

Use P2P trading. And know your region rules.

Op did not really state which part of the world he is, there are countries right now that they can't use P2P platform base on the restrictions coming from their government in some exchange platforms such as Binance, Kucoin and OkEX, If truly that the money is actually coming from the profit op made from trading Bitcoin and cryptos, and in a case this money is huge and doing a single withdrawal would arise questions about the source of the money, then I suggest that op should do his withdrawals batches by batches or little by little, this way he's going to attract less attention about the incoming funds on his account and avert questioning.

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Quote from: m2017 on May 25, 2024, 08:26:12 AM

Why would you transfer money to a bank card and complicate everything? Exchange in exactly the same way, but in reverse order: bitcoin - for money and no one will have any questions for you (unless you start throwing banknotes around

).

This works if you don't plan to spend your bitcoin profits on something bigger, but problems start if you wanna buy something like a new car/house/apartment as rarely anyone (at least in Europe) will accept cash for it.

Quote from: Helena Yu on May 25, 2024, 08:08:40 AM

If you worried your banks will questioning where are the money come from and you can't answer it, you can use CIM (cash by mail) method, so your money will not be linked to banks.

I heard people mentioning this, but have you actually used this option to sell bitcoin? I am asking becauise imho it seems risky to send money via mail.

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Quote from: kotajikikox on May 25, 2024, 07:31:14 AM

Centralized exchange have KYC so they are able to verify your identity and other information. If you are using a centralized exchange and one that has good reputation then the chances of your bank raising questions might reduce.

Do you sincerely trust that a Bank would NOT ask where the Money came from only because it comes from Binance? I would definitely not.

The best way is still trying to avoid Banks as much as possible. If Banks are THAT necessary, maybe use a Bank that is semi Cryptocurrency friendly.

For amounts exceeding ten thousand Dollars, I would expect any Bank to ask me to prove where the Money came from. It is how Banks operate pretty much.

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Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

If you mean a lot of bitcoins needed to cash out then try to find some local wallets that have either bank or remittance withdrawal options. Then after that ask your relative to sign up some accounts and do certain verification to increase your withdrawal limits so that you can successfully take out your bitcoin balance and you can separate it to multiple accounts so there will be no problem will occur on your side.

I sometimes do this on my local wallet providers and so far I didn't encounter any issue especially on the regulations implemented by government to those financial institutions.

But just make sure that you didn't exceed on the limits and take it slowly so that there will be no question or other suspicious activity will happen on your end and the wallet provider might ask some requirements to verify your transactions. Just do proper planning into this but you can always choose what's more convenient to you since after all there's a lot of suggestion can be used provided by a lot of people here.

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Quote from: Agbamoni on May 25, 2024, 07:37:35 AM

You can easily convert your Bitcoin to fiat using your calculator and after then the best way is to sell your coins on an exchange that is available in your country. There are different exchanges like coinbase, Binance, kucoin that offers these services. Don't get it all wrong these exchanges do not directly buy your Bitcoin or USDT they will match you with a buyer in the exchange through the P2P area there you will see merchants and their prices. Although the amount of taxes depends on your country of origin.

Selling through P2P is a perfect way to avoid tax, but we need to know that the traction can be tracked if the bitcoin in question was also purchased from Coinbase before the bitcoin price pumped up and there is a little profit gained from that purchase.

If it's in the US, where bitcoin and other currencies are taxed just like other properties in the US, if it's purchased from Coinbase, there will be a capital-gained tax attached to it.

You might think you have escaped the tax system until the regulatory authorities request your details from the exchange. As Coinbase has been known to be a good complainant, if the regulatory authorities are released, the person will be forced to face tax evasion charges.

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Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

I don't think if other countries like mine that there's a wallet actually recieved an Bitcoin and easy to convert fiat with lesser fee. But if your plan is converting your Bitcoin into fist and transfer your money to your bank account then like what other said above you need to use a centralize exchange. But you need to fill up some KYC.
But hoping you are in a country that there's an easy way to convert you Bitcoin to your fiat. but if not then you need to transact you Bitcoin using a process.

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If you want to do that, my advice is to process wd to fiat with an amount that is not too noticeable and if at the same time it is not impossible that the bank will ask about all of it with a note to you. Unless you are an entrepreneur who has run a large business and has booked a special customer card from the bank with a large turnover in your account on their platform.

If our people are ordinary people with ordinary account activities, it will be very strange if once money enters our account immediately fat, for example 1 BTC directly. That's pretty big.

I think, if the existing exchange is legal and can get permission, I think it's easy because there is a limit on the level that can be withdrawn daily and for ordinary taxes have been deducted directly when you process the sale of your BTC.

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You shouldn't be asking how to not get questioned by the bank but what answers to give if you get such questions. If Bitcoin is legal in your country, then proceeds from Bitcoin investment sales is a good reason for the sum you would be receiving into your account. You can also exchange in installments, so you don't get one huge sum at the same time;
For example, in some regions, amounts above $10,000 will be queried, but not $9,900 done twice.

Remember to document the txid from when you bought Bitcoin and when you sold.

About tax authorities you may need to speak to an advisor who will guide you on how to fill your tax report. Tax laws vary from country to country and even within states in the same country so you'll need to have accurate information on your tax obligations and possible loopholes that allow you spend less.

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Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

Why would you transfer money to a bank card and complicate everything? Exchange in exactly the same way, but in reverse order: bitcoin - for money and no one will have any questions for you (unless you start throwing banknotes around

). Fiat money is 100% anonymous (a financial product of the traditional monetary system) so take advantage of this. Use the services of a well-known exchangers aggregator, because they had the direction of exchanging bitcoin for cash (and vice versa).

Quote from: kotajikikox on May 25, 2024, 07:31:14 AM

Firstly, you are going to need to use a centralized exchange here. Centralized exchange have KYC so they are able to verify your identity and other information. If you are using a centralized exchange and one that has good reputation then the chances of your bank raising questions might reduce.

When I see advice on using centralized exchangers and KYCs on a forum where they talk about financial freedom and independence, I feel uneasy.

Quote from: kotajikikox on May 25, 2024, 07:31:14 AM

There’s really no sure way of preventing banks from asking questions without having to show them that you are indeed just transferring some of your money and no illegal activity is happening. However just make sure that when they do raise questions you are equipped with the required documents and hoping you are not evading any taxes because that will surely put you in trouble.

If you want to use their services, you will have to play by their rules: banks take your money, and you report to them for every penny and shake so that your account is not frozen.

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Quote from: tajimas on May 25, 2024, 07:15:22 AM

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

It depends on what country you are living right now. You don’t have any problem if you are from 3rd world country since bank system on country like mine is not strict when it comes to transactions. You just need to declare as “personal” and bank will consider it as friend transfer.

On the other hand, country like US will not gonna give you a chance to undeclared any transactions since IRS is very strict while the penalties is insane that makes it easier to comply rather than dodge your tax responsibility.

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Quote from: Agbamoni on May 25, 2024, 07:37:35 AM

You can easily convert your Bitcoin to fiat using your calculator and after then the best way is to sell your coins on an exchange that is available in your country. There are different exchanges like coinbase, Binance, kucoin that offers these services. Don't get it all wrong these exchanges do not directly buy your Bitcoin or USDT they will match you with a buyer in the exchange through the P2P area there you will see merchants and their prices. Although the amount of taxes depends on your country of origin.

I agree with your explanation, but the P2P transactions done on exchange doesn't incur tax deduction from the receiver of the fiat, because from my experience, the fiat it's mostly transferred from the bank account of the person you've been paired with by the exchange, so it's basically like a normal cash entering into your bank account, except from the OP's country they deduct tax from any money entering into his account, which I strongly doubt of that kinf of situation.

Helena Yu

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If you worried your banks will questioning where are the money come from and you can't answer it, you can use CIM (cash by mail) method, so your money will not be linked to banks.

I don't think you can evade from tax authority, you can temporary hide it if you didn't buy something expensive like house or lambo, but when you buy that, it will raise a suspicion how do you get a lot money when the money in your banks aren't that big. Don't do tax evasion, instead learn tax avoidance.

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You can easily convert your Bitcoin to fiat using your calculator and after then the best way is to sell your coins on an exchange that is available in your country. There are different exchanges like coinbase, Binance, kucoin that offers these services. Don't get it all wrong these exchanges do not directly buy your Bitcoin or USDT they will match you with a buyer in the exchange through the P2P area there you will see merchants and their prices. Although the amount of taxes depends on your country of origin.

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