i agree its depend where you live..
for exemple i can sell for any big amount on LCB and i m not gona pay any taxes.
Topic: Is Selling Bitcoins on LocalBitcoins.com Legal? - page 2. (Read 21382 times)
If someone were to sell bitcoins on localbitcoins.com in exchange for paypal my cash cards, which were then deposited into paypal. Is that legal as long as any taxable gains received in the transaction are paid? If the amount is under $500 per day and $4000 per month would there be any requirement to know the customer or comply with anti-money laundering laws?
it depends on which country you are transacting because each country has regulatory policies different laws regarding bitcoin, I think if you are transacting of bitcoin to localbitcoinc for cash card paypal you usually pay a fee transaction fee, usually in need ID verification for security process your transactions
full member
Activity: 1414
Merit: 129
The first decentralized crypto betting platform
If someone were to sell bitcoins on localbitcoins.com in exchange for paypal my cash cards, which were then deposited into paypal. Is that legal as long as any taxable gains received in the transaction are paid? If the amount is under $500 per day and $4000 per month would there be any requirement to know the customer or comply with anti-money laundering laws?
There is no clear-cut answer to this question. But based on all the information available, you should be okay since you are acting as a merchant/agent for PayPal (which is licensed in every state) and since you don't hold customer funds on account like an exchange.
The concern ...and a very valid concern, would be the risk and exposure to charge-back fraud.
A lot of transactions on LocalBitcoins are with cash in person though, and this is a a tad more hazy as in a few cases it could be regarded as tax evasion.
Ofc you can sell if u don't try to cheat.
I suppose it depends on the country but I would say it is mostly illegal but not very bad, sort of. I doubt Localbitcoins is a registered company paying taxes for all the money they make on these people meeting, so I guess it just can't be considered as legal. To which country does this stuff belong anyway? Or to none just like the btc itself?
I think it is legal world wide because i never heard that someone are experience of illegal just buying bitcoins or selling in localbitcoin.. you are just selling bitcoin and i think you will be still use an escrow for dealing to someone so that you are far in scam. localbitcoin or a company? i think they are not paying in tax except for a website or other needed in the site just to secured or increase the availability of the site..
Owing bitcoin is legal in many countries.
I suppose it depends on the country but I would say it is mostly illegal but not very bad, sort of. I doubt Localbitcoins is a registered company paying taxes for all the money they make on these people meeting, so I guess it just can't be considered as legal. To which country does this stuff belong anyway? Or to none just like the btc itself?
I think it is legal world wide because i never heard that someone are experience of illegal just buying bitcoins or selling in localbitcoin.. you are just selling bitcoin and i think you will be still use an escrow for dealing to someone so that you are far in scam. localbitcoin or a company? i think they are not paying in tax except for a website or other needed in the site just to secured or increase the availability of the site..
If someone were to sell bitcoins on localbitcoins.com in exchange for paypal my cash cards, which were then deposited into paypal. Is that legal as long as any taxable gains received in the transaction are paid? If the amount is under $500 per day and $4000 per month would there be any requirement to know the customer or comply with anti-money laundering laws?
The legality of your transaction depends upon your locality and if you could do a little research about that then you will understand whether you are doing something illegal or not.Every country has different rules and regulations regarding taxes so be aware of those while doing anything so that you wont get into trouble. 
I suppose it depends on the country but I would say it is mostly illegal but not very bad, sort of. I doubt Localbitcoins is a registered company paying taxes for all the money they make on these people meeting, so I guess it just can't be considered as legal. To which country does this stuff belong anyway? Or to none just like the btc itself?
It depends what country where you from here in the philippines buy bitcoins in localbitcoins is legal but just a few people buying bitcoins in localbitcoina hete because it is easy to buy bitcoins here just in convenient store you can buy easily and easy to cashout the money from bitcoins.
If I remember correctly then that would be the case if you are resident of New York, There laws consider anyone sending BTC an exchanger needing to comply with the anti-money laundering laws, However if someone state they will use illegally you should not sell it "someone got into trouble because of that".
I think the answer depends on the country where you live in. In my country there is no rule yet for cryptocurrency and transacting bitcoin thru localbitcoin is not prohibited. It was not labeled legal or illegal by the government simply because they are busy with other stuff that they forget about current technology that is trending.
I am new, and may not have much insight to offer yet, but I did find these useful.
https://coincenter.org/entry/tracking-bitcoin-regulation-state-by-state
https://www.bitaml.com/
https://coincenter.org/entry/tracking-bitcoin-regulation-state-by-state
https://www.bitaml.com/
I think that is legal as long as still following the rules..
I think something is legal as long as we doesnt get caught...for example i stole your money its legal until i got caught and its illegal...this is just my opinion..
I think something is legal as long as we doesnt get caught...for example i stole your money its legal until i got caught and its illegal...this is just my opinion..
Exactly, and I think its legal to sell or buy bitcoins on localbitcoins.com as I am using since last 1 year, and I didn't face any issue with it, so at a moment its legal lets see whether it becomes illegal in future or not
If someone were to sell bitcoins on localbitcoins.com in exchange for paypal my cash cards, which were then deposited into paypal. Is that legal as long as any taxable gains received in the transaction are paid? If the amount is under $500 per day and $4000 per month would there be any requirement to know the customer or comply with anti-money laundering laws?
Depends upon your local laws. If your country/state regulates such transactions or requests you to report such sell/buy transactions, you may want to comply if you want to make everything 'legal'.
What you do in your country might be illegal for me in my local jurisdiction and vice versa.
It can violate local lawa, depending on how much u wish to buy or sell. everyone should do a little research of state laws and money regulations. Maybe u just need some paper work to be done and everything would be alright.
yes that is right to say and i think every state will have their own rules and regulation, but i to me as most of the countries have not yes consider bitcoin as a legal currency therefore to me it will be illegal to sell bitcoin on local bitcoins.com. Many countries do not think the bitcoin is a legal currency, but it is a kind of commodity. So it is still legal.
It can violate local lawa, depending on how much u wish to buy or sell. everyone should do a little research of state laws and money regulations. Maybe u just need some paper work to be done and everything would be alright.
yes that is right to say and i think every state will have their own rules and regulation, but i to me as most of the countries have not yes consider bitcoin as a legal currency therefore to me it will be illegal to sell bitcoin on local bitcoins.com.
It depends where do u live.it is legal in my country as I live in India.
there is still no official mention of rules on the legality
of the law of bitcoin
it is not officially declare it as a legal currency then how can one sell bitcoin on local bitcoins.com. i think it will be illegal because the state has not consider it as legal currency and there is no such rules regulation for bitcoin or any tax implementation on bitcoin there fore i think it will illegal to sell bitcoin on local bitcoin boar.com of the law of bitcoin
I think that is legal as long as still following the rules..
I think something is legal as long as we doesnt get caught...for example i stole your money its legal until i got caught and its illegal...this is just my opinion..
you have a very wrong opinion, it is illegal if the state consider it illegal and you are engage in illegal activities and that is way the state is going to arrest you. other wise police is not going to arrest a person who i not involve in illegal activities. I think something is legal as long as we doesnt get caught...for example i stole your money its legal until i got caught and its illegal...this is just my opinion..
Finding out Localbitcoin traders are making that much per month is alot of money not being assessed for an individuals total annual income.
If that is not put down as earned income then that is in fact hiding capital gains from the government.
How they will determine how much you owe to them is up to a tax officer to decide if you owe back taxes on that doing it for several years before this year is up.
If that is not put down as earned income then that is in fact hiding capital gains from the government.
How they will determine how much you owe to them is up to a tax officer to decide if you owe back taxes on that doing it for several years before this year is up.
Jump to: