Topic: Using bitcoin for transactions in country where it is illegal. (Read 942 times)

I guess you're right. If you keep a low profile, there's no reason for the government to be suspicious about you. Would they be stupid enough to waste resources on a random citizen? I don't think so. Unless you're flagged as a criminal, there should be no reason to be worried about making BTC transactions under the table.

I guess people living in autoritarian countries like China and Russia are already doing this. Eventually, these countries will end up embracing the revolution. All just to fill their pockets with money (taxes). Hopefully, Bitcoin fulfills its mission of decentralizing the economy before it's too late.

Anything that has to do with legality you have to take it very seriously and if it's about bitcoin been illegal In some countries I think trading it might not be the problem for spending it as a currency might just be another new generational problem that might come up upon you because the country already have a recognized currency when it goes to exchange of goods and services and the law might just end up punishing the victim since every country have their own police's and the rest it will be better to just follow it, and I know trading bitcoin they won't stop but going beyond that. The court might dismiss when they know it's not that relevant because you need permit to spend an alternative currency by the government which is not recognized then the person have their self to blame, know the law and know what to avoid.

Thisjis a funny scenario and I don't think it can be attempted anywhere. Once something is banned in a country, there is no way the government will want to hear anything about it because it can be seen as a big offense. Reporting such a case to the police can even make the person that make the transaction to end up in jail. For cryptocurrency to be banned in a particular country, I believe their is a penalty for such a person and the government would not want to look into such a matter because it compromised the law that is guiding every citizens of such country. If something like this ever happens, the government can investigate the matter and send the both patties to prison for this.

We need to remember the fact of people getting p2p trades for shady coins as well. Like how do you think they can turn stolen bitcoins into cash without getting caught by the government? They use p2p for this transaction, and let the other person take the fall if they have to. They are doing something illegal anyways, and they are laundering their money this way basically, in the crypto world at least.

The end result would be, you see a deal where someone offers 5% even 10% discount, you think there is a great deal, you take the deal, they accept to go first, and actually do send the money to you, then you feel better about it and give them your cash, a bit time later law knocks on your door and asks you where you got it lol. So always be careful because anything could happen with any purchase, you are not going to get great deal out of this and you should be focusing on how you could make any document legit so you could show the law enforcement or the court if anything happens.

That only happens unless we are considered suspects and a danger that has long been on the government's radar . But if we were just ordinary citizens, no government would have the time or manpower to do those things .  No government would spend time creating traps to harm their citizens when we are just ordinary people, the government is not good but we don't need to think of them as that bad .

If I remember correctly bitcoin is not illegal in Nigeria, the Nigerian government lifted the bitcoin ban last year .  Although it is not recognized as legal currency, it is not considered illegal either.



https://www.reuters.com/world/africa/nigerian-central-bank-lifts-ban-crypto-trading-2023-12-23/

@Abiky

I wouldn't worry about meeting a cop or government agent for a bitcoin deal. Most countries don't have the time or resources to set up such operations. And they are limited with manpower. That's more a thing from movies.

I can see from OP's post history that he posts in the Nigerian local. Let's assume he is Nigerian. It isn't exactly an economic superpower in the world. Their government agencies have bigger fish to fry than catching bitcoin traders in the act. Unless, of course, we are talking about huge sums of money.

Governments don't care about us, don't serve us, but Bitcoin serves us from its root. So between Bitcoin and government, I will choose Bitcoin but I have to research on how to purchase Bitcoin, store it, and use it in a safe method, to avoid problems with governments legally.

If I can find good method to do it, why do I ignore a very good opportunity with Bitcoin?

It's what's happening around the world, with exponential growth of Bitcoin users with time.

Bitcoin adoption S-curve

If we are really good citizens, we will not use, not invest in bitcoin when it is considered illegal in our country. We have not been good citizens in the first place by using bitcoin and even using it to evade taxes.

If our country bans bitcoin, we better avoid anything that is considered illegal and that is the only way to protect ourselves. Don't expect the law to protect or condone our behavior when we know the law but still intentionally break it.

As of now, not many countries accept bitcoin as a currency or payment method, it would be a bad idea to use it as a currency and expect the government to protect us. We should think about the consequences of the problem before doing anything that is considered illegal in our country.

Of course. Nothing can stop him. But what if he deals with someone who's an undercover cop or government agent? They he'd be "screwed" for good. The risk is simply not worth it. I'm talking about meeting someone physically to make a deal. Online, though, it's another story. If the OP is careful enough not to disclose his personal info, he'll be safe. With Bitcoin adoption rising worldwide, I'm certain countries who once rejected it, will embrace it in the long run. As long as they're able to tax BTC effectively, nothing else matters.

Yes, that's right. Indeed, as good citizens we must obey the rules in the country where we are or the country we visit. Although bitcoin transactions are carried out with the consent of both parties, if the country prohibits transactions with bitcoin, it is better not to do it. because this is the same as a drug transaction, both parties agree but the country prohibits it, then it will be a criminal act and can be arrested. It would be wiser for us to use legal local currency for transactions.

In my country there was an incident of a transaction using crypto and both parties were eventually arrested. sometimes there are people like this who make the crypto world bad, as if crypto is a crime so that it is hated by the country that has banned it as a means of transaction. So it is wise to use crypto properly.

This is a case that happened in my country.
https://www.cnnindonesia.com/nasional/20230530135954-12-955787/polda-bali-tangkap-pengelola-rental-mobil-layani-transaksi-kripto

Please don't make the mistake of basing such a crucial decision on an internet forum, especially from advice given by total strangers. Consult a qualified lawyer instead. If Bitcoin is illegal in your country, avoid using it for any purchases. Even in countries where Bitcoin is legal, buying property with it doesn't make much sense. The reason is the taxman. You'll likely be creating a complicated situation with tax authorities by purchasing property with a non-legal tender.

Of course, each country will have different laws but in this case I think both will be investigated and both will be punished according to the law.

In this case: you mean the seller is almost not violating anything while he is the recipient of the bitcoin and denies it, and the buyer will be liable because he used the bitcoin?


What about the seller? Will he be fined? Buyers will certainly be fined for breaking the law by using bitcoin, but sellers cannot escape punishment either because the transaction cannot be completed without both parties reaching an agreement. It is clear that the seller is also involved in bitcoin trading and he is also breaking the law.

In any case, neither of them will end up well, so it's best not to break the law in the first place, especially when we're involved in high-value transactions.

Am sure that both parties wouldn't want to get arrested in a country where Bitcoin is banned and people get arrested for having or trading cryptocurrency or have apps for such crypto business.

Am sure that such kind of Bitcoin transaction that is even supposed to be a secret deal, will first receive confirmation of being credited the said amount of Bitcoin before the document of property is handed over.
There is so much formality these days mostly as it revolves around real estate business and documents such as C of O has to be an inclusive evidence as proof of ownership while the receipt of payment has to be made and documented as well for future reference.
In short, am sure that only wise and knowledgeable persons can make a deal like this and not have a dispute, because both parties has got their end to deal with.

Business people with large transactions will definitely not make silly deals. property sellers can ask buyers to exchange their Bitcoins for the agreed currency and valid in their country. that's what will probably happen.

But if the agreement has been made and the transaction is successful for both parties, what evidence will actually strengthen the case brought to court for legal proceedings? of course, because something is illegal, both of them will not make written evidence of the sale and purchase transaction using Bitcoin as a means of payment. they will make proof of payment using legal currency.

You should never enter into a Bitcoin transaction agreement with any party in a country that does not accept Bitcoin, i.e. where it would be considered a criminal offence.
If you want to do a business deal with a party, you must do the transaction in the local currency of that country, otherwise, if the transaction is done through Bitcoin, and if a party denies the transaction, then both parties will be punished in the legal trouble.

The law field is a very complex one so it is difficult to know what it may happen without a more specific example about where this may happen, after all if bitcoin besides being illegal to use for any transaction was not considered to be a valuable asset anyway, then the owner of the property being sold will have a massive advantage, as even if the bitcoin transactions could be corroborated to have happened, the court could say that no recognized asset was used for the purchase of the property, and that person could retain its property and the bitcoin that it was sent to them.

In countries where cryptocurrency transactions are banned using bitcoins is risky. If problem arises court decision is unclear. Proving payment with cryptocurrency does not guarantee success as court might reject it due to its illegality. Courts aim for fairness considering individual circumstances and local laws. Outcome could go other way  favoring buyer or dismissing case or requiring further investigation. Court must balance law and justice making predictions difficult. Additionally property owner false claims may still result in consequences.

I think a case like this is very unlikely to happen, especially in a country that strictly prohibits cryptocurrencies like bitcoin. Because logically, everyone in a country like that already knows that bitcoin or cryptocurrency is prohibited, so if for example there is a problem such as being cheated (using bitcoin/crypto), it is unlikely that the case will be reported to the police. Because you can be sure, if for example a case like this is brought to the police station, the problem will become even more complicated. It could be that both those who report and those who are reported are arrested, on the grounds that they have violated the rules in that country, namely carrying out transactions using bitcoin/crypto. So for sure, in my opinion, it is impossible for anyone to report such a case in a country where bitcoin/crypto is banned, even if the person was really cheated. Because as far as I know, in the realm of bitcoin or crypto, most people choose to remain silent when they are cheated. Because if for example this was announced to other people, it would definitely be very dangerous. Because it could be that after telling people about this, there are a handful of people who have evil intentions, such as robbery. Because currently people who are involved in the world of bitcoin/crypto investment are seen as truly rich people, especially by ordinary people. So if we experience a case like this, I think it would be better to keep quiet, especially if for example in a country that still prohibits bitcoin or crypto. And the conclusion from my answer to your question, it is clear that the person who reported the case and who was reported will be fined/penalized because they have violated the rules of their country's government.

For someone who has been using it and hiding it perfectly, I don't get why that person would pay up with crypto?
If crypto or Bitcoin is illegal in their country then both buyer and seller would surely face the charge.
The person who has been using Bitcoin or crypto in that country would surely knows a way to convert it into cash, so why would that person even need to pay with crypto?

Your example is excellent.

When government marks Bitcoin is illegal as a mean for any trade, like house trade and other trades, if you and your trade partner try to invade it by using bitcoin as a mean for the trade, risk rises from here.

Everything will be smooth if the trade is done without any problem from you or your trade partner. If the trade goes bad, with one of trade participants do things like scam, another trade participant will have big trouble. If he brings this trade to police, what police will do. Arrest the scammer if possible, forces him to refund money to the victim; but what will happen with the scammer?

I believe that bitcoin of the scammer will be seized.