Topic: Is it illegal for me to sell my Bitcoins? - page 8. (Read 26851 times)
I am quite sure that a license is not permitted to transfer bitcoins. Please remind yourself that you may need to comply with your local tax law if you decide to sell.
You are providing much needed liquidity to your local Bitcoin economy. Keep up the good work!
I heard that some people have been arrested and charged with "transmitting money without a license" for selling Bitcoins.
Does this mean it is illegal for me to sell my Bitcoins?
I was arrested for selling my Bitcoins using localbitcoins.comDoes this mean it is illegal for me to sell my Bitcoins?
I paid all of my capital gains taxes on all of my trading - that was not the issue. The legal issue boiled down to one question: was I operating a business or not. They claimed it was a business, I claimed it was not. After being forced to "donate" about $40,000 in cash and $40,000 in Bitcoin to their Federal Asset Forfeiture slush fund we agreed to disagree and they dropped the charges. Defending me against the federal felony charge [Operating a business without a license, up to five years in prison and a $250,000 fine] did end up costing us almost $300,000 of our retirement funds, our daughter's college fund, our savings, and the equity in our house.
You can read all about it here:
http://www.jmwagner.com/
http://www.burtw.com/
However, if you sell your Bitcoins though an exchange you will not run into this specific issue since there is really no way they can call it a business, go after you, and then grab all the assets they can get their money grubbing hands on.
Dear Burt,
As a fellow-bitcoiner, I'm terribly sorry to read about your experience and the impact it has on your family's well-being. I think we all know who the real 'terrorists' are.
-Inggrid @Gatecoin
Its not illegal as long as you're reporting your taxes.
You can be arrested even if you pay all your taxes. I was arrested for selling my Bitcoins using localbitcoins.com
I paid all of my capital gains taxes on all of my trading - that was not the issue. The legal issue boiled down to one question: was I operating a business or not. They claimed it was a business, I claimed it was not. After being forced to "donate" about $40,000 in cash and $40,000 in Bitcoin to their Federal Asset Forfeiture slush fund we agreed to disagree and they dropped the charges. Defending me against the federal felony charge [Operating a business without a license, up to five years in prison and a $250,000 fine] did end up costing us almost $300,000 of our retirement funds, our daughter's college fund, our savings, and the equity in our house.
You can read all about it here:
http://www.jmwagner.com/
http://www.burtw.com/
However, if you sell your Bitcoins though an exchange you will not run into this specific issue since there is really no way they can call it a business, go after you, and then grab all the assets they can get their money grubbing hands on.
Read through your story. Respect.
Its not illegal as long as you're reporting your taxes.
You can be arrested even if you pay all your taxes. I was arrested for selling my Bitcoins using localbitcoins.com
I paid all of my capital gains taxes on all of my trading - that was not the issue. The legal issue boiled down to one question: was I operating a business or not. They claimed it was a business, I claimed it was not. After being forced to "donate" about $40,000 in cash and $40,000 in Bitcoin to their Federal Asset Forfeiture slush fund we agreed to disagree and they dropped the charges. Defending me against the federal felony charge [Operating a business without a license, up to five years in prison and a $250,000 fine] did end up costing us almost $300,000 of our retirement funds, our daughter's college fund, our savings, and the equity in our house.
You can read all about it here:
http://www.jmwagner.com/
http://www.burtw.com/
However, if you sell your Bitcoins though an exchange you will not run into this specific issue since there is really no way they can call it a business, go after you, and then grab all the assets they can get their money grubbing hands on.
Read through your story. Respect.
It depends on where you're from. It's best to always report it when you're doing your taxes just to be safe and be sure you won't run into those kinda of problems of having to pay back.
I do not think this means it is illegal to sell, but may be you should be very careful and only use cash
I do not think this is a very heavy enforced rule, just keep amount small and try not to be explicit about your btc transactions
Its not illegal as long as you're reporting your taxes.
You can be arrested even if you pay all your taxes. I was arrested for selling my Bitcoins using localbitcoins.com
I paid all of my capital gains taxes on all of my trading - that was not the issue. The legal issue boiled down to one question: was I operating a business or not. They claimed it was a business, I claimed it was not. After being forced to "donate" about $40,000 in cash and $40,000 in Bitcoin to their Federal Asset Forfeiture slush fund we agreed to disagree and they dropped the charges. Defending me against the federal felony charge [Operating a business without a license, up to five years in prison and a $250,000 fine] did end up costing us almost $300,000 of our retirement funds, our daughter's college fund, our savings, and the equity in our house.
You can read all about it here:
http://www.jmwagner.com/
http://www.burtw.com/
However, if you sell your Bitcoins though an exchange you will not run into this specific issue since there is really no way they can call it a business, go after you, and then grab all the assets they can get their money grubbing hands on.
Its not illegal as long as you're reporting your taxes.
I believe that governments are afraid of the bitcoin because for one they don't have any control over it, plus the things that you buy with bitcoin, you don't pay taxes over it, thus the governments doesn't make any money of off it.
In my country, when I buy goods with bitcoin, I pay tax (VAT) on the goods with bitcoin. The retailer will pay fiat to the government instead of bitcoin.
I believe that governments are afraid of the bitcoin because for one they don't have any control over it, plus the things that you buy with bitcoin, you don't pay taxes over it, thus the governments doesn't make any money of off it.
I honestly think the only reason they are against it is because tracking BTC transactions is difficult and sometimes impossible. I hate to say it, but if the banking system would step in and set some rules for the currency, they they would take away the illegal transaction part of it all and they would be able to regulate it to a point. I think the reason the only places that this is illegal would be because they can not control it. You know the governments, they hate what they can not control, but I think they know that we know this and they are working on a system to accept it and will soon take the next step to make it a currency traded on the stock market. Again, this is my opinion.
Nothing will likely happen if you pay your taxes and it is not from shady sources.
The concept is simple. If you do it as a business with a profit motive then it is considered a controlled activity. If you simply want to buy some today and sell some next week then no. It's no different then buying and selling PM which as a business which also requires KYC/AML. People start running it as a business and then try to pretend it's a hobby.
If you use localbitcoins to buy and sell a small amount of bitcoin, that is not a business.
Since my case was dismissed before it went to trial this was not decided. Whether this it is a business or not currently can only be decided by a jury.It is not a money transmitter.
Also not true. You would have to argue this point with motions before a judge and then possibly a jury. This would have been an argument in my case but again the motions were never filed and the case did not go to a jury. But you have declare that you do not deal with drug dealers.
And this would help you how? Sure, if someone says "I am a drug dealer" or "I am an undercover cop pretending to be a drug dealer" or "I am an undercover Homeland Security agent" then you should not trade with them. But all of these guys will lie to your face. Then what?The bitcoin you sell should not be used illegally.
In my case the only legal issue was whether it was a business or not. If you use your Bitcoins to do something illegal, for example to buy a controlled substance with them, that would be a whole different case. Anyway, how would you go about enforcing how the Bitcoins bought from you on localbitcoins eventually get used?
If you use localbitcoins to buy and sell a small amount of bitcoin, that is not a business. It is not a money transmitter. But you have declare that you do not deal with drug dealers. The bitcoin you sell should not be used illegally.
I heard that some people have been arrested and charged with "transmitting money without a license" for selling Bitcoins.
Does this mean it is illegal for me to sell my Bitcoins?
I was arrested for selling my Bitcoins using localbitcoins.comDoes this mean it is illegal for me to sell my Bitcoins?
I paid all of my capital gains taxes on all of my trading - that was not the issue. The legal issue boiled down to one question: was I operating a business or not. They claimed it was a business, I claimed it was not. After being forced to "donate" about $40,000 in cash and $40,000 in Bitcoin to their Federal Asset Forfeiture slush fund we agreed to disagree and they dropped the charges. Defending me against the federal felony charge [Operating a business without a license, up to five years in prison and a $250,000 fine] did end up costing us almost $300,000 of our retirement funds, our daughter's college fund, our savings, and the equity in our house.
You can read all about it here:
http://www.jmwagner.com/
http://www.burtw.com/
However, if you sell your Bitcoins though an exchange you will not run into this specific issue since there is really no way they can call it a business, go after you, and then grab all the assets they can get their money grubbing hands on.
I think it depends on how much you would sell and area where you live at.
It really depends on how much bitcoin you re trying to sell, if you are selling 2-3 btc then I don't think that the government will care at all. But if you are selling 200-300 btc then this might be a different case.
Jump to: