Topic: Using bitcoin for transactions in country where it is illegal. - page 5. (Read 944 times)

Real estate transactions almost always require the consent of both parties and both parties will sign certain paperwork before the transaction can be completed. The buyer will never be able to use bitcoins for payment if the seller does not accept that request and provide the wallet address and that will definitely be mentioned in the contract. Not to mention, usually real estate sales contracts are only valid after being confirmed by government agencies, so I doubt this transaction would be possible in a country where bitcoin is illegal. So in case it happened, both parties are in danger, not only the buyer but also the seller is even charged with the more serious crime of intentionally appropriating another person's property.

It depends on how much money they have, if they're multi millionaire, they can bribe the police and they will be free. The one who use Bitcoin to buy property will not going to jail, while the scammer will going to jail, but only for few days and he will be free.

If they not have enough money to bribe, both of them high likely going to jail.

Never would I purchase something that requires paper work using Bitcoin in a country where Bitcoin is illegal.  It would be a very stupid move.  I may go to another country and purchase myself a Smart phone or a Laptop, I may go and get myself some clothing or eat at some Restaurants.  But I would not buy property such as cars or Real Estate if I could not do it using Bitcoin legally.  You would obviously set yourself up for failure and Scam attempts.  Because why would I want to accept an illegal Currency unless I had dubious motives?

If you are using Bitcoin in a country where it's illegal, then you are risking yourself in lots of ways. If are going to pay someone in Bitcoin for buying a property like lets say an apartment, but the other part has some devious motives and says they didn't get the money, you are pretty much screwed. Even if you have proof of transaction on the blockchain that you sent the funds, the justice departments will not recognize it since crypto transactions are banned there. The one selling you the apartment knows this very well and had it planned all along. Since no fiat currency is involved, the government wont do anything for you, but as soon as you try to make it a legal matter, you are ending up admitting that you did something illegal. All you will do is get into more trouble, while the counterparty escapes with your money.

Non custodial wallets are not KYC. No one knows you own bitcoin if you store it in a non custodial wallet (no KYC).

To protect your privacy with transactions, you need to use two things: Bitcoin full node, and Tor.

A beginner guide to Bitcoin Privacy

When you're doing illegal things, make sure you don't trade with a scammer. Because if you are scammed, you will be less ready to file a report to police or government for support.

Both of you will have sentences from the court, like jails. Because in this trade, both buyer and seller broke the national law. If one of you are scammer, the sentence for the scammer will be stricter by doing illegal things, and scam.

If using bitcoin is illegal. the buyer would be in danger. If he takes the case to court, the focus will shift into him. 'Why were you using bitcoin in the first place?' They would ask him so not only do I think the court will not recognize the buyer's claims, I think they might even punish the buyer for using bitcoin. In reality, if this happened to the buyer in a country where bitcoin is illegal, I am sure he would not want to take this to court afraid of getting consequences himself or just wasting time.

Plus cases like this will fuel the already existing hatred of the country to bitcoin. If this hit public, the government will basically be saying 'I TOLD YOU SO. DO NOT USE BITCOIN.'

... But why would they use Bitcoin? I reckon there are a bunch of other methods out there that they're able to use to convert that Bitcoin into fiat. But considering the situation, I'd say it depends on the laws of the country? I reckon there's some lawful agreement before the sales of any property so they'd have to write up some contract or something and they'd have to talk to a lawyer about that. That should pretty much cement that they can't use Bitcoin since it's not legal right there tbh.

But let's say it DID get through for some reason, I'm pretty sure before anything else, they'd both get arrested just for the fact that they're both transacting in Bitcoin, regardless of the result. The government might even take the Bitcoin themselves.

That's indeed debatable.

What are the repercussions for using bitcoin in the specific country? because laws could differ in each country. If it's something like a paying a doable fine then it is worth considering bringing the case to a lawyer for a legal advise. It could be risky if there is a jail time lol.

Ultimately, you'll have to weigh down the pros and cons plus check in with your risk appetite.

When a country's regulations have been set, then:
what is prohibited will still be illegal when done,
and when done, it means breaking the rules.
and if you break the rules, you will be subject to sanctions,
if caught and proven guilty.
The point is in this

there must be proof from both. However, here, the Bitcoin sender has a greater loss. Even if he can prove the transaction transfer, but the recipient claims that the wallet is not his, then the sender will really lose.

However, as far as I know, if you are going to make a transaction that is so big, such as buying property, there must be something called a sales and purchase agreement, including an agreement regarding payment details, invoices, and proof of payment, then there is a deed of purchase through a notary. So if it is stated in the agreement that the transaction was made with Bitcoin and the recipient's wallet is listed, then the recipient will not dare to file this in court because they understand the consequences, in fact both of them will lose.

And it seems difficult to deny, because basically, there will be proof of chat for sending transactions and others. '

If the case is like this:
There is no agreement letter, no chat evidence, and no witnesses to support it, then:
the sender is someone who is very careless and may be easily deceived. And this is a fatal mistake because it is easy to trust or carelessly spend money even in Bitcoin for transactions without evidence, witnesses, and others. So in this case, the Bitcoin sender is the one who will suffer a big loss.

When it borders on fraud, the law will first of all act to protect the party involved not to lose their money, and since the transaction in bitcoin is not hiden, it won't take the court too much effort to verify wether or not the money was credited via bitcoin since the sender should be able to provide transactions trx and also the receiver provides his address with agreements.

And after then the law can now take it stand on why the both party deal on bitcoin knowing that the government have banned it transactions, so this is not a big problem issue at all, and in most cases, both parties can easily settle out of court to avoid penalty from the law.

Both of you will be in subject of investigation and for sure will be proven that both of you use bitcoin then might go to jail with that or pay penalties. So to avoid getting any issue much better don't use bitcoin for doing p2p transaction.

Much better that you should use bitcoin for investment purposes only since its dangerous to transact using this knowing that government declare it as illegal asset. So always use fiat when dealing something since this is more ideal to use especially when we talk about safety.

To many crazy things that we don't want to happen so we always choose safety over our wants to transact using bitcoin.

The thing is bitcoin isn’t like those kind of traditional monetary system where you have cases like that, transaction will are stored public blockchain so it will be crystal clear maybe it was received after sent or not. So except the receiver wants to scam the sender the transaction will be visible for him to see.


Ok let’s assume it got to this place, the case cannot be taken to court because both parties will be held liable to doing cryptocurrency transactions which was presumably unlawful and illegal and that will only make law breakers, moreover the court wouldn’t attend to this case before it is not under constitution laws. So the sender would have give up this case sadly

I think haven't followed court proceedings and how the law operate in most cases, the law will hold the person sending the Bitcoin as means of payment and the property seller receiving the Bitcoin, as first and second offender of the law. the issue of who received payment and who did not receive payment will be immaterial, as both of them will be culpable for breach of the law, hence the relevant sections of the constitution concerning law offenders on that subject matter will be read out to them. Because it will be assumed that they both know that bitcoin activities in the country is illegal, so they will be held for breach of the law.

Assuming that the complainant isn't a person of influence and also assuming that the judge and jury isn't corrupt, then the defendant would need the services of top notch lawyers to plead his case. The law is neither black nor white there are some grey areas that I believe can always be exploited by the lawyers to turn the case in the favor of their client. An unrelated and humorous example is like that of a prisoner sentence to life in prison but then died and was resuscitated. He argued that he had already served his life sentence since he died... I don't know how the story ended but you get the point I am driving at already.

The final verdict will probably depend on the country and how the laws work there. Suppose it's a country where there is respect for the law and there is no corruption or anything. In that case, the court will ask both parties to submit proof, such as the buyer should show proof of the payment since he claims he made the payment, and the seller will then need to prove that he didn't receive the transaction considering the seller sent the funds in a wallet that can be linked to the buyer in some way. If he sent them in an unknown wallet, I don't know how they will be able to prove that the address belongs to the seller, so that can be a negative point for the buyer.

However, if the buyer can prove that the address receiving the funds belongs to the seller then the court will surely investigate to find out if the funds are received or not, and if received, they will either be returned or confiscated considering the use of cryptocurrencies is illegal within the country, and the buyer might be charged a penalty or something for it.

One thing in this case is clear, the buyer will not get out of it without any trouble because you are using cryptocurrencies when it's illegal, even if the seller doesn't get away with it and with the funds, the court will probably not let the buyer have the funds as well unless they charge him a heavy fine on it.

The outcome would be bad for both sides, if the owner claim that he didn't get the money in bitcoin he could go to jail for the fact that he was making a deal with bitcoin.

Is like someone buying cocine and claiming that he didn't get the cocine, it's a ilegal activity and buyer and seller should get in troubles if they decide to deal the situación with the Police.

It will not be advisable to make transactions in bitcoin within a country where cryptocurrency transactions are illegal by the law. But Imagine this scenario that someone has been using their bitcoins for transaction secretly successfully, and then one day decides to use the bitcoin that they have to make payment for something like a property to the owner of the property, If there is this kind of problem for instance where the owner of the property decides to claim that they did not receive any money in bitcoin, and the case is taken to a law court, what do you think the outcome of the case will be?
If proofs of payment are provided but in cryptocurrency, do you think the court will consider it even though transactions are tagged illegal with it? or will the case be thrown out and the owner of the property with the false claim of not receiving the money be allowed to go freely?