Topic: Service legitimacy question: Bitcoin to USD (Read 385 times)

Tell me how can I stay anonymous if I use p2p exchanges on decentralized exchanges or services without KYC?
I either pay money from my bank card or accept money on my bank card.
Even if I use someone else's bank card, it will be a second crime if the first transaction is criminal.

To remain anonymous, you should use only cash and work through couriers.

If the person's intention is to avoid tax, then it is a good move. But if it is for tax evasion that's a criminal offense that can take someone to jail. If you don't want to pay tax in your country, you can consider going to a crypto friendly neighboring country and do your transactions. My country just introduced an 8% tax on all crypto transactions and we will be forced to pay it. The government might not give licenses to any exchange that fails to implement the new tax policy. I would have to use these approved exchanges because the government can seize your funds if you use an unapproved one. The government has been sending undercover law enforcement agents to offer P2P transactions. Once you send the funds to the bank account, both traders' bank accounts will be locked by law enforcement agencies.

If you want to remain anonymous consider using only decentralized exchanges that offer P2P transactions. If you want to send a transaction through a centralized exchange you should be willing to sacrifice your privacy. Even if you pass through someone the funds would still be traced back to you. These days it is difficult to carry out crypto transactions without centralized exchanges but Bisq is a recommended decentralized exchange if you are considering privacy.

Thanks for the link to the article, but in Russia such people are called "drops".
And besides, this is not Russian slang, but this name came from foreign darknet forums.

A deposit is not required in these schemes. The drop usually hands over his bank card and SIM card, to which the personal bank account is linked, and other people manage the account.
If it is necessary to make bank transfers, then intermediaries go with the drop and even live with him for several days in a hotel until the transfer is completed.
This is not always a criminal activity, many such services are used by cryptocurrency exchangers, but if there is a crime in the transfers, then the drop can have big problems. For example, if earlier there was no criminal liability for this, now such drops are made members of a criminal community and this is an aggravating circumstance.

I will request you not to get into such questionable transactions. Definitely for your own safety! once you have used your bank account for such transactions, you can be questioned by the authorities any time in future. I am not sure about the rules in US, but in my country, government authorities can question you anytime in the next 7 years for any transactions you have done within this time frame.

2 Bitcoins is not a small amount so think 10 times before agreeing to such requests.

Yep, that's how you become a money mule:
https://en.wikipedia.org/wiki/Money_mule

There is a chance that this whole set up is perfectly (or at least mostly) innocent and that the counterparty has other, not necessarily illegal, reasons to be extra careful -- but chances are that there's something shady going on and the legal implications are definitely not worth the risk.

Hello
If that receiver bank account is in USD than this is for tax saving.
In india direct BTC to INR will cost 30% crypto tax and 1% tds with lots of other tax.
Most people trying to find way for such condition one of them is USD transfer from out side india which will exempt them with LUT for 18% gst and no crypto tax as this income in USD not in crypto.
But now days positive pay is in action by government, any unknown 3rd transfer will still flag there money. way is no longer safe way to save tax.

Never, remember for the rest of your life, never use your bank account for dubious transactions.
This income is not worth your risks.
This money can be criminal, and you will be a member of the criminal community because you make a profit. They want to use you as a drop.
Here are Russian services for exchanging bitcoin for cash in Delhi, India
https://www.bestchange.ru/bitcoin-to-dollar-cash-in-dlh.html

USA
https://www.bestchange.ru/bitcoin-to-dollar-cash-in-nyc.html
https://www.bestchange.ru/bitcoin-to-dollar-cash-in-miami.html
https://www.bestchange.ru/bitcoin-to-dollar-cash-in-losan.html
There are many cities in the list. Russian exchangers work all over the world, thousands of reviews.

I don't know where you are from (if you are also from India or USA or some other country) but in most countries, transactions over $10K raise alarms in banks. If it is an international transfer and depending on the country they can block it until you explain what you are doing with the money. So you can get into a lot of trouble.

Just an idea, here. Maybe the one op is making a transaction with does not want the bitcoin to be traced back to him once he converts it to fiat. Now maybe that person just wants to avoid unnecessary questions from the bank from directing it to op or maybe they just do not want to be found out. Either way, it's difficult to conduct a transaction with such a huge amount of money especially with someone you might not know personally.  Even if it might  not be a scam, it can have serious repercussions later on.

Is this someone that you know and trust, or is it a random stranger? It seems to me that there is a high probability of it being a scam or being illegal in some way. Why can't this person sell their bitcoins for USD and send the USD? Why can't the person just send the BTC directly?

As for possible scams, the person might want to set up a wallet for you or insist that you set up a wallet at a specific site. Then they would take back the bitcoins once you have sent the USD.

Hello,

I have someone that is willing to pay me a % of BTC for converting it to USD and sending it to India. Basically they are wanting to send me 2 BTC and I am supposed to convert those to USD (in US) and send to an Indian bank account.

I know usually these things are questionable but since BTC is irreversible... any thoughts on below:

1) Tax implications since these will go towards MISC earnings on W2 and even if I write majority as expenses since most will be sent back in USD.
2) Is this frowned upon since I am not a registered coin exchange in my state of residence?
3) Is this seen as $ launder1ng?

Probably yes to all questions, but wanted to confirm. Thanks guys.