Topic: Is it legal to sell bitcoin in person for cash? (Read 6120 times)
Its not illegal. Infact some countries have legalized the use of bitcoins and made it taxable. So trading BTC goes with the law.
Don't understand how this could be Illegal, how any could find that you are selling bitcoins, if you made a deal you just give or take cash to/from person and he transfers you bitcoins, but there bitcoins and cash are not directly associated so there no way to prove that you sold or bought bitcoins? Like you just gave some money to a buddy, and he gave you some bitcoins...
I know that the government has targeted LCB and I would be very careful if someone mentioned anything illegal. I believe if the amounts are under 500, you dont have to get id or anything, but there is a threshold where you do, like when you sell silver to a pawnshop, they are supposed to get your info if you sell them over X amount, most of them don't.
I think the best avenue is contact an attorney that deals with this sort of thing, since bitcoin is considered property I would have to pay capital gains tax, so if I pay 500 for btc and sell it for 510 then the govt gets 15 percent of the 10 dollars...
Thanks for your responses..
There is no threshold that you need to follow AML rules with. I am not 100% sure of the threshold of which you need to verify someone's identity, but I do know that a bank must verify your identity and log any transaction that involves over 3k in fiat cash. I think the best avenue is contact an attorney that deals with this sort of thing, since bitcoin is considered property I would have to pay capital gains tax, so if I pay 500 for btc and sell it for 510 then the govt gets 15 percent of the 10 dollars...
Thanks for your responses..
I also agree with you saying that if the other person mentions anything about using the purchased bitcoin for anything illegal you should decline to pursue the transaction. This is likely a red flag that law enforcement is behind this trade and will try to use it against you.
I bet you, if you ask the IRS they would tell you it's illegal in the USA.
I presume if you declare your capital gains, you would be in a better position, to barter, if you get caught doing it.
Countries take different views on this. Where do you stay?
I presume if you declare your capital gains, you would be in a better position, to barter, if you get caught doing it.
Countries take different views on this. Where do you stay?
I know that the government has targeted LCB and I would be very careful if someone mentioned anything illegal. I believe if the amounts are under 500, you dont have to get id or anything, but there is a threshold where you do, like when you sell silver to a pawnshop, they are supposed to get your info if you sell them over X amount, most of them don't.
I think the best avenue is contact an attorney that deals with this sort of thing, since bitcoin is considered property I would have to pay capital gains tax, so if I pay 500 for btc and sell it for 510 then the govt gets 15 percent of the 10 dollars...
Thanks for your responses..
I think the best avenue is contact an attorney that deals with this sort of thing, since bitcoin is considered property I would have to pay capital gains tax, so if I pay 500 for btc and sell it for 510 then the govt gets 15 percent of the 10 dollars...
Thanks for your responses..
I am not so sure about that to be honest.
Just sharing this old news (Feb 2014) with you.
http://www.coindesk.com/localbitcoins-users-criminal-charges-florida/
Just sharing this old news (Feb 2014) with you.
http://www.coindesk.com/localbitcoins-users-criminal-charges-florida/
Quote
Both of the men are being charged under two laws. The first is Florida’s anti-money laundering law, which targets money exchanges above $10,000.
The second is running an unlicensed money transmission business. Statute 560.125 forbids people from exgaging in frequent unlicensed money transmission-type transactions of more than $300 but less than $20,000 in any 12-month period in the state.
The second is running an unlicensed money transmission business. Statute 560.125 forbids people from exgaging in frequent unlicensed money transmission-type transactions of more than $300 but less than $20,000 in any 12-month period in the state.
IMHO, now that the IRS has officially announced bitcoin is a commodity (property) then I think the unlicensed money transmission business will no longer fly.
Theoretically speaking, yes, but I am not so sure if it is really 100% safe.
Anyway, I am not in Florida.
I am not so sure about that to be honest.
Just sharing this old news (Feb 2014) with you.
http://www.coindesk.com/localbitcoins-users-criminal-charges-florida/
Just sharing this old news (Feb 2014) with you.
http://www.coindesk.com/localbitcoins-users-criminal-charges-florida/
Quote
Both of the men are being charged under two laws. The first is Florida’s anti-money laundering law, which targets money exchanges above $10,000.
The second is running an unlicensed money transmission business. Statute 560.125 forbids people from exgaging in frequent unlicensed money transmission-type transactions of more than $300 but less than $20,000 in any 12-month period in the state.
The second is running an unlicensed money transmission business. Statute 560.125 forbids people from exgaging in frequent unlicensed money transmission-type transactions of more than $300 but less than $20,000 in any 12-month period in the state.
IMHO, now that the IRS has officially announced bitcoin is a commodity (property) then I think the unlicensed money transmission business will no longer fly.
I am not so sure about that to be honest.
Just sharing this old news (Feb 2014) with you.
http://www.coindesk.com/localbitcoins-users-criminal-charges-florida/
Just sharing this old news (Feb 2014) with you.
http://www.coindesk.com/localbitcoins-users-criminal-charges-florida/
Quote
Both of the men are being charged under two laws. The first is Florida’s anti-money laundering law, which targets money exchanges above $10,000.
The second is running an unlicensed money transmission business. Statute 560.125 forbids people from exgaging in frequent unlicensed money transmission-type transactions of more than $300 but less than $20,000 in any 12-month period in the state.
The second is running an unlicensed money transmission business. Statute 560.125 forbids people from exgaging in frequent unlicensed money transmission-type transactions of more than $300 but less than $20,000 in any 12-month period in the state.
Selling small amounts should not cause you any kind of problems however if you are going in for quite a big deal with someone I would definitely be over cautious not just for scamming but also because it could be someone you least expect who is willing to catch you in the act. From what I understand it is not illegal but some places may try to stop you from doing it.
The law is not going to stop you from trying to sell bitcoin for cash in person, however if you do this then you must follow all the AML and KYC rules/regulations which are very complicated. If you do not follow these rules then you would be subject to prosecution if you sold any amount. However if you kept to smaller amounts then it would be likely that no one would really care (but if the police are out to get you then they would use it to charge you). 
I was wondering if its legal to sell bitcoins for cash in person using localbitcoins? I think it would be if I declared all income on my taxes. I wouldn't be a money transmitter as I would be receiving or giving the cash directly/in person. What are your thoughts on this?
Yes it is.
I think the answer to this question depends on the place where the exchange takes place. It can be legal in one place and illegal in another.
Selling small amounts should not cause you any kind of problems however if you are going in for quite a big deal with someone I would definitely be over cautious not just for scamming but also because it could be someone you least expect who is willing to catch you in the act. From what I understand it is not illegal but some places may try to stop you from doing it.
This depends 100% on where you are from. Also it depends on the amount, if you do it with bigger amounts you might have to create a business.
In my country you can sell small amounts . but if you make the transaction more that 3 bits I am sure it becomes illegal you can sell maximum 3 BTC in a month and one transaction . I am sure if you use more than this amount you will surely capture by TAX then the court will decide about your money .
Over 10,000 you need to declare it to your gouvernment.
10K per transaction or in a certain time frame?
IMHO It is legal.
I think it is better if you want to sell your bitcoin with a very low price because you want some quick cash, because This will not affect the market price.
I think it is better if you want to sell your bitcoin with a very low price because you want some quick cash, because This will not affect the market price.
I believe it's legal. What you just need to watch out for is if anyone acts suspiciously or acts like they might be doing something illegal. In other word, if they say something like "oh this is great, I just sold a bunch of drugs and I'm buying Bitcoin with the money." Then you might have an issue with taking part in money laundering. But just stick with smaller transactions I would think and just bail if anything smells fishy.
If you are a seller of BTC, you absolutely must understand this sticky: https://bitcointalksearch.org/topic/amlkyc-explained-454795.
As others point out - do not get involved with anything that looks like money laundering.
As others point out - do not get involved with anything that looks like money laundering.
If you are selling smaller amounts there shouldnt be a problem.
It's legal, but watch out for stings. I have heard of undercover agents targeting LBC sellers and talking about how they're going to use the BTC for drugs and then arresting them. So, if someone you are selling to in person mentions anything illegal, get out immediately. Otherwise, you'll probably be okay.
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