The recent arrest of BurtW, the previous arrests and my own use of LBC made me start thinking about safety. How can we exchange bitcoins between individuals safely if trading them is illegal? Are there legal ways to trade btc for dollars? Are the arrests simply because the seller knew the illegal intent of the buyer? Are the arrests because btc can't be sold for fiat without an expensive license? Is their a limit to the dollar amount that can be traded legally without a license? I want to use Bitcoin but I don't want to go to jail what can I do?
It seems to me that all of the problems stem from trading bitcoins for dollars and prior knowledge of the illegal use of the btc after the sale. This seems easy to fix. Ensure that when you first introduce yourself during the trade the first thing you say is this:
Hello, pleased to meet you.
Because of the recent problems with LBC, I need to tell you something before we begin and I need you to wait until I finish speaking before you respond.
I am recording this conversation remotely.
Anything you say about illegal activity will be reported to the proper authorities and stop the sale so please do not talk about any illegal activity.
I do not sell bitcoins for dollars. I trade bitcoins for apples. I brought a sample of my favorite apple with me. (Point to apple)
I would appreciate a donation to my favorite charity as a reward for my time.
You can bring the apples to me later don't worry about having them now.
How many bitcoins would you like? He tells you the amount (let's say one btc) and you tell him with a $237 donation to your favorate charity presented to you now to deliver to the charity that will be 2 apples.
If he agrees, he hands you the "donation" and you transfer the btc.
Does anyone see a problem with this? Would this work? It's very sad that we have come to the point of camouflaging our trades but I see no other way.
Topic: How to trade on LocalBitcoins without going to jail - page 3. (Read 2877 times)
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