Why localbitcoins dont need KYC ? Moreover they are being used across the continents. Dont they need to adhere by every country's law ?
It is the buyer's responsibility to adhere to KYC/AML laws.
Localbitcoins simply connects buyers with sellers and acts as an escrow service.
This so it is important to make sure your client is legit and to meet in a public place to trade.
And be careful to report in compliance to AML/KYC or that one guy might be the one that was the undercover cop
What exactly do you mean by "report in compliance" as you would essentially need a money transmitter license to comply with AML laws/regulations
No you would not this is only in regards to taxation I meant make sure to declare your taxes but I guess it varies by region
This would likely qualify as Barter or Investing profits
But it would depend on how much volume you trade I guess
http://www.cbc.ca/news/business/bitcoins-aren-t-tax-exempt-revenue-canada-says-1.1395075When you sell [the bitcoins], they will deposit that in your account," said Chavady. "As soon as it turns into Canadian dollars, it's back in the eyes of the CRA and everybody else. If you get a big deposit of $10,000, or $100,000, [CRA is] going to say, 'Hey, where did that come from?'"
Indeed, the tax man has already thought of that.
The CRA told the CBC there are two separate tax rules that apply to the electronic currency, depending on whether they are used as money to buy things or if they were merely bought and sold for speculative purposes.
"Barter transaction rules apply where bitcoins are used to purchase goods or services," Canada Revenue Agency spokesman Philippe Brideau said in an email.
Barter is the exchange of one good for another good without the use of cash, such as when a farmer who grows vegetables trades with another who raises chickens. Many Canadians don't realize such exchanges are taxable, but they are.
Paragraph 3 of the CRA's Interpretation Bulletin IT-490 clearly states that in a barter transaction between arm’s-length persons, "we generally consider that the value of whatever is received is at least equal to the value of whatever is given up."
In the above example, that means whatever you've received in exchange for your $1 worth of vegetables must be documented as a taxable gain of at least $1 somewhere.
When it comes to trading bitcoins for profit, the tax man says there are tax implications there, too.
"When bitcoins are bought or sold like a commodity, any resulting gains or losses could be income or capital for the taxpayer depending on the specific facts," ruled the CRA.
That section is covered in paragraphs nine through 32 of the CRA's section IT-479R, Transactions in Securities, "which provide general comments for purposes of determining whether transactions are income or capital in nature."
