Topic: What are Legal Risks in Crypto World ? (Read 295 times)

There are many legal risks you can often face. If you invest in a fraudulent company, you will have quite serious legal consequences. Or transferring fiat money to buy cryptocurrencies via banks in large quantities is likely to be checked by law

Legal risks will always be there unless there is created a global preferably decentralized crypto regulator agency that regulate all things related to crypto and may include icos/ieos, exchanges, mining, staking etc and they should have the power to blacklist or ban a project plus they should only allow high quality transparent projects to raise funds as icos. Untill we have global concensus about legalization of crypto at government level we will still be facing legal risks but i think most countries will sort that out in next 2 to 3 years.

Yes that's right because cryptocurrencies are slowly moving inside the people in the every country. There are too much of negativity over the people and we are looking such things to be vanished.
We are required to improve the value of the crypto space and awareness among the newbies to improve and expect legalization.

Cryptocurrency use cases will be increasing more and more, increasing their number exponentially. in 10-15 years, cryptocurrency can be used almost everywhere and it doesn't need any legalization will be needed for this. Just continue to believe in cryptocurrency and we will wait for mass use cases.

simple reason indeed no one wants to lose and the government also does not want to lose because crypto right is too many regulations that will bring us down ,until now and so on we have to keep fighting for ourselves with freedom but there are many governments that support crypto too is also a positive point for it

Legal backing would have been there but the real issue is that governments basically don’t want people to enjoy extreme financial freedom. As far as risking your money is concerned, there are so many businesses where despite of legal backing people are losing their money because of corrupt systems. At least in the world of crypto, there is no corruption by government officials.

So many countries of the world, in fact, most do not have legal backing yet to cover for the risks of investors from their jurisdictions. Sometimes, they might decide to add some penalties to it, but that won't happen though. Let's be realistic about it. Which means that, your investment for now is at your own risk, with no legal backing.

Legal risks? These are mostly just the regulations and definitions around ICOs in my opinion most of the time.

That is of course given the fact that your country actually allows BTC usage, because if they don't, then that is obviously your primary worry before anything else.

But anyhow, we've seen how hostile regulators and policymakers have been towards BTC and that attitude is hard to change. And with the vague rules in place everywhere it's tough to navigate yoruself around them for sure.

The reason for this is that it is difficult to find a balance between regulations and maintaining the anonymity and confidentiality of cryptocurrency. As long as people still can't resolve this, there won't be a global rule for owning cryptocurrency and other countries will still ban them. Each country has their own thing so if you're not careful enough, you might face some issues soon.

Although crypto is still illegal in most places today but can still be used. Acceptaning it legally by governments will only help someones remain at peace with the crypto. The cryptocurrency was not created for governments to accept, on the contrary "original" cryptocurrencies exist to support our economic freedom. But we still have not learned how to behave it.

Unfortunately for all of us, governments do not decide on the same thing together, all of them have their own version of laws and bitcoin (or crypto in general) is not decided on a table but more on governmental discussions.

So, while USA may see it as an asset, Cyrus may see it as a currency and Bangladesh could see it as item and some other nation could see it as something totally different. Long story short if we want to get bitcoin on the same page all over the world we need to lobby for it but unfortunately bitcoin is the money of the poor and whales of crypto already don't care about it so the poor and unimportant thousands can't make any sort of decision at all or can't be influencing any sort of decision made by the politicians.

No such thing as legal risk in crypto world yet and i don't think there will ever be such, buying and selling of crypto will always be risky so do your research if you don't want to be a victim

It is difficult to make crypto a currency because many interests will be disrupted. The central bank is one of the parties whose existence will be disrupted if the Government regulates crypto as a currency. By law, I think cryptocurrency will be a digital asset because it is still in limited trading and not many people are familiar with crypto

Clear legal risk that every person who has cryptocurrency assets must provide a complete identity, that's for sure.
The problem is there are some people who really don't want their identities to be known because they honestly don't want the cryptocurrency cycle to be controlled by the government.
Once cryptocurrency is controlled by the government, there will be a monopoly in the cryptocurrency market. That is for sure.

That is because not all people affiliated with crypto that much maybe there are still some percentage where places are not so familiae or used to it though the adoption is growing thicker. In my country it's well known but the use cases isn't booming yet.

I think there is a legal risk or not, it depends on government policy. if a country legalizes cryptocurrency as an investment and trade tool then we will not get legal risk if we trade crypto. but if a country does not allow its citizens to trade crypto. then of course he will get the penalty if he violates this rule. and also if we use crypto for crime then we also get punished.

In my country, I am still in the junction of the legality of this crypto, although some markets that have registered their project to the financial body to legalize it. But in society is still low and odd and partially looked at Crypto as a means of ordinary investment.

I am just worried that in the future there will be regulations regarding the violation of the use of cryptocurrency in my country, maybe until now we can still relax because the legality of cryptocurrency 60:40 is 60 that rejects the existence of cryptocurrency and 40 that agrees to cryptocurrency. All I do is go through and be ready whatever the decision and the worst possible.

Currently in most of the countries of Western world there are no legal risks associated with bitcoin. It's because these countries Haven't explicitly stated bitcoin illegal. So as far as you are using bitcoin for legal activities you are absolutely safe. But the problem is in some asian and African countries like Bangladesh where there is strict warning against bitcoin and government has banned them. Until now there is no such instance but someone can be prosecuted merely for using Cryptocurrencies therefore such currencies do have some legal risks involved.

The reason why all local wallet in bitcoin in which country we reside is usually implementing KYC/AML verification to every user. This is considered legal but the risk to us as a crypto enthusiast is exposing our identity in the crypto world and those who we trust our personal identity. Nevertheless, we can be considered crypto investing itself is also very risky if you don't understand. And also taking a right to face the risk is a way road to success.

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.

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What is your thought about Legal Risks in Cryptocurrency ?