Legal or not: Exchange of Bitcoin between a US resident and sanctioned countries

Argoo

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Quote from: abit100 on October 19, 2020, 03:09:15 PM

Based on US Laws is it legal for people residing in the United States to engage in cryptocurrency exchanges with ordinary citizens (like family members) of the countries with US sanctions imposed on them? I could not find a definitive answer to this. I appreciate any responses from folks with legal knowledge (possibly citing legal sources).

Thank you

International sanctions are imposed against the state, legal entities or officials of this state, and not against citizens. Therefore, I believe that it is completely legal to send payments in cryptocurrency or in ordinary currency to citizens of a country against which US sanctions have been imposed.

abit100

newbie

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Thank you everyone for your answers.

jseverson

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I can't find any specific examples, but according to this website:

Quote from: https://www.finder.com/send-money-country-sanctions

Sending money to sanctioned countries — and the potential consequences

There are ways that people have chosen to get around these economic sanctions. But we stress that doing so is illegal and exposes you to severe legal and financial penalties.

If you choose to route your money through a country that doesn’t have sanctions against your intended destination — the UK, for example — you could be charged by the US with money laundering.

P2P shouldn't be a problem, as odolvlobo shared, but it could still certainly be seen as a method of money laundering. I don't think there will be issues with small amounts, but I would still strongly discourage it unless both parties know how to cover their tracks.

odolvlobo

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Quote from: abit100 on October 19, 2020, 03:09:15 PM

Based on US Laws is it legal for people residing in the United States to engage in cryptocurrency exchanges with ordinary citizens (like family members) of the countries with US sanctions imposed on them? I could not find a definitive answer to this. I appreciate any responses from folks with legal knowledge (possibly citing legal sources).

Thank you

I don't know what you mean by "cryptocurrency exchanges", but this might answer your question:

Quote from: https://home.treasury.gov/system/files/126/hum_exp_iran.pdf

U.S. sanctions regulations permit U.S. financial institutions to process noncommercial, personal remittances to Iran. These transactions may include a personal transfer of funds from the United States to Iran to assist a family member or friend, provided that the payment is processed through a third-country financial institution before reaching Iran, i.e., not a direct transfer from a U.S. bank to an Iranian bank, which is a prohibited transactions under current U.S. law.

AnonBitCoiner

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Eloncoin.org - Mars, here we come!

Quote from: abit100 on October 19, 2020, 03:09:15 PM

Based on US Laws is it legal for people residing in the United States to engage in cryptocurrency exchanges with ordinary citizens (like family members) of the countries with US sanctions imposed on them? I could not find a definitive answer to this. I appreciate any responses from folks with legal knowledge (possibly citing legal sources).

Thank you

In some part of United states,we can easily transfer the bitcoin.But in some states,their the flow of bitcoin had been lower than a as usual one.The flow of bitcoin in US was the source of Bitcoin price increase for a sudden pump and sudden dump.We can't predict with a accurate percentage.

Yaunfitda

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Quote from: jackg on October 19, 2020, 03:55:43 PM

Afaik there's a term for sending money abroad to family but I can't remember it's name.

Remittances?

Quote from: jackg on October 19, 2020, 03:55:43 PM

My assumption would be it's the same as standard currency. If you can transfer via PayPal, western union or a bank account then you should be able to do it with bitcoin.

But that's standard fiat though?

Quote from: jackg on October 19, 2020, 03:55:43 PM

If not, how are the irs going to know about it? Are you planning to transfer large amounts as this could be where a dex might be useful if they'd want to break the link between sending to a sanctioned country from theirs.

Unless you declare it, then IRS wouldn't know in the beginning,

If you can't find any answers then you should consider sending money from US to a sanctioned nation is illegal and it's potential consequences.

jackg

copper member

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https://bit.ly/387FXHi lightning theory

Afaik there's a term for sending money abroad to family but I can't remember it's name.

My assumption would be it's the same as standard currency. If you can transfer via PayPal, western union or a bank account then you should be able to do it with bitcoin.

If not, how are the irs going to know about it? Are you planning to transfer large amounts as this could be where a dex might be useful if they'd want to break the link between sending to a sanctioned country from theirs.

abit100

newbie

Activity: 2

Merit: 0

Based on US Laws is it legal for people residing in the United States to engage in cryptocurrency exchanges with ordinary citizens (like family members) of the countries with US sanctions imposed on them? I could not find a definitive answer to this. I appreciate any responses from folks with legal knowledge (possibly citing legal sources).

Thank you

Topic: Legal or not: Exchange of Bitcoin between a US resident and sanctioned countries (Read 157 times)