Topic: What are Legal Risks in Crypto World ? - page 2. (Read 295 times)

There is no legal risk on using cryptocurrencies unless the government doesn't allow you use at your location. Many countries doesn't pass the bill over BTC so you may exchange the BTC there for fiat currency.
If you pay the fees and proper taxes you will not get any problem on using the cryptos in your country.

There are no more or less "legal risk" than anything else. Crypto itself is risky and if you can't handle it then leave. That is really the biggest risk.



You have no idea what you are talking about.


True. If people don't earn bitcoin there will be nothing to tax anyway. No money coming in at all. Besides you only pay tax on fiat. Paying tax on crypto is a  crime since the government doesn't own it.

My main concern is government banning fiat-money ramps. Then again i wouldn't be able to pay taxes for bitcoin if they did that, so maybe they won't do that.

I have to agree with your opinion, there are parts of the world that fully embrace Cryptocurrency and there's a part of the world that is banning it, it differs from country to country and we must not rely on what one government is saying and made it a fact about Cryptocurrency.
Cryptocurrency adoption and progress are part of the move of many users coming from around the world and not one country.

if crypto finally gets the law, at least there is a positive side that is obtained that is protection against hacking. but if the government finally takes over crypto with its legal entity, in my opinion crypto will actually lose its purity as a decentralized asset and will eventually turn into centralization where the government will be the authority in regulating all activities in crypto and possibly it will make crypto lose freedom and also anonymous. there are indeed positive and negative sides, but if you can walk in balance between the two, why not?

I think the legal risk is that I can be related to money laundering, Cryptocurrencies is that I have not been clearly defined in the law, No agency controls, if you buy electricity. Illegal death is most likely you will lose.

I have the same though.
Don't want to force line it up with fiat money or just currencies.
I prefer commodity/currency. More like it can be both.

It will never replace fiat or if it will that is a long shot. A very lone one.
That just means world peace.
Not all government can be satisfied by how great bitcoin could be if implemented as an option for payment. More countries thought of it as a threat to the financial industry specially when it comes to anti-money laundering.
So I guess we could just wait for now. Bitcoin is young and it will go further.

Each country's regulations regarding crypto are still limited, even many countries are not interested in and attention to the current development of crypto. Therefore, legal risk can confuse individual investors and might be able to divert investment interest in crypto.

But a government regulation that is too strict can take over and fully control an industry, so this will backfire or contradict the main goal of the crypto itself, decentralization.

Based pm SEC compliant the majority of the cryptocurrencies are filling all of the requirements to be the securities rather than utilities. that is the legal risk in the crypto world when so many assets are not having utility. that means the crypto itself can be considered as illegal stocks based on the compliance that already applied in so many major countries like USA or CHINA.
The fact crypto is not yet regulated. But i think there will be more legal risk in the crypto world when we are seeing from the various cases.

Legitimate of things differs country to country hence crypto cannot have same level of risks with respect to legal entity like governments for the members of this forum. I mean to say we cannot have legal risks of cryptos kind of discussion in general but specific to one country must be more appropriate. I believe more than 50% of governments are still neutral against cryptos as of today.

If OP is about discussing legal things of cryptos in USA then they must specify that in subject-line itself. Otherwise, this topic cannot serve its purposes as we are from different countries than just USA.

In my country, I heard that my country in preparation of new laws against cryptos and crypto adopters. Also, I read our federal bank in plan to release my country specific crypto coin which means my country is slowly moving toward legal heaven for crypto adopters. I guess we may not have any risks in legal terms in near future itself. 

I think any Government will recognize cryptocurrency as a digital asset or as a minimum commodity. To be recognized as a payment instrument such as money, I think it will experience regulatory constraints because it will disrupt the dominance of the central bank in the economic world and also the role of government in building economic growth

In simple terms, all work has risks, so if there are too many risks in crypto, so we must be more careful in moving forward and always have to have research so that we can minimize the risks that we must bear.

as you said And now the task ahead is to make legal documents suitable for all countries and all investors can use this document will be very influential, where if the document is really in law it will be beneficial for the investors to avoid a fraud so that the risk will be minimized

Legal documents for crypto? I don't think this will work because the volatility of crypto will always be present, i think the risk involve is what makes it more interesting, if you aren't ready for risk do not invest in crypto, its that simple

I will focus on your subject
In crypto world; it is difficult to use the word legal

different countries have different views about crypto
Hence; you can’t just mention legal risk;

You buy or sell crypto currency tokens at your risk
So dyor

Personally, I believe that people who invest in cryptocurrency are very at risk for legal activities. Since at the moment a legal document has not yet been created that can fully guarantee the security of this digital currency. And now the task ahead is to create a legal document that is suitable for all countries and all investors can use this document.

Together with the explosion of interest in the digital currency and all its implications for new and traditional companies, the legal impact of these new technologies and currencies needs to be made clearer. Given that governments around the world, regulatory agencies, central banks, and other financial institutions work to understand the nature and significance of digital money, individual investors can invest in this new environment. On the other hand, when buying and selling cryptocurrencies, investors assume certain legal risks.

Although digital currency is easy to confuse for traditional electronic money, this is not the same; similarly, as it is not physically owned and carried between parties, it is unlike conventional cash currencies. The fact that space has only been popular recently in comparison to more conventional currency and payment systems is part of the uncertainty of the legal status of the digital currency. Below, we will discuss some of the new legal ramifications of cryptocurrency investment.

Cryptocurrencies as Property

How the central government views cryptocurrency investments is a vital legal concern for any cryptocurrency investor. In the United States, the IRS has described cryptocurrencies not as currencies but as assets

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