Looking to sell bitcoin? It's complicated
5 stars based on
48 reviews
Anyone here looked into the relevant regulations in the USA regarding peer-to-peer property exchanges? I hope to follow up on this later this autumn. However, a quick glance ad the IRS website and FinCEN left me thinking that I probably need to buy or less less than USD equivalent per day or they could consider me to be running a money services business. Hi, I live in Florida and trying to monitor all regulations related to cryptocurrencies to have updated info.
Unfortunately, USA law system is really complicated and mostly based not on current laws, but on court is it legal to sell bitcoin in person for cash.
Also, Each US state actually it is like a different country, have different own constitution, flag, regulations. Means, what perfectly legal in one state, can be prohibited in another. Most of US citizens and residents, have to spent lots of time in courts and departments to resolve different issues, like, traffic violations, property issues, running a business, etc… And to be successful, they have in most of cases use the help of professional lawyers or advisers in a specific field.
So, nobody can professionally represent you in court or give you real correct advice related to crypto operations. You are on your own and depend on luck and how is specific agent or judge will feel about you.
And they will feel BAD about you if anything will be looks for them unusual, means suspicious… US authorities, like to know everything about everybody.
They like to know, all about your transactions, contacts, where are you spent your vacation and even, what color of toilet paper you are using. Actually, any amount can be " suspicious" depends on the situation. Cachire immediately called police! Police came rapidly, but never disturb me, they simply checked me by numberplate of my car, use on-board computer, So by the time I went of store and walked by patrol car, I saw my face on their on-board computer.
They looked at me, no any criminal record, all clean, so they never stop me. But the fact that authority, acts fast on even little amounts can show system itself. Afterin US, things with personal privacy changed even worse! Now, the authorities really crazy about any activity and trying to get under total control everything! They are fishing for criminals is it legal to sell bitcoin in person for cash way. This situation clearly shows, situation with any cryptocurrencies transactions in the USA.
So, anybody operated any crypto must be prepared to deal with authorities at any time, have ready correct answers and run their business in a safe, legal way. Actually, in USA people have a legal right of privacy, but to exercise this right, you need to know how exactly deal with a specific part of this. Say, you want to sale or buy some BTC or other crypto. Remember, they are highly trained professionals! Their job is to provoke and they will lie to you to get information they need and it is legal in the US.
And they, will find the way to charge you, believe me, even if you are doing all operations, legal ways, just because you are not cooperative. An this moment, the IRS is searching for all BTC transactions for previous years and making lists of connections of this transaction with US residents. Guess, what fore they spent so many sources on this? Well, it is simple, some people under the impression, that if they use crypto, they may not pay taxes, because it is invisible to the IRS.
And the IRS has plenty of ways to track you! Same time, it is many legal ways to avoid taxes, without break any law, but you have to know how is it legal to sell bitcoin in person for cash where. So, To stay out of trouble with cryptocurencyes, you have to be ready to give right answers and proofs to the authorities and make all transactions in a right way. The right way of your actions will depend on many factors as: Are you US citizen or not? In what state are you planning to purchase property?
Price range of property? Type of property, residential, commercial, etc… Any relatives or good friends in the US willing to help with purchase paperwork and their income status. Why all of this important? OK, You are Not US citizen, in this case, IRS have not any interests about you, only homeland security will be concerned about the legality of your sources, so it is not related to criminal activity. In this case all you need is some proof that you have not any criminal background in the country you are coming from.
And you will state that the coins is your saving investment. You can Buy any property in any state without any problem, as soon as you found person, willing to sale for BTC.
As soon, you become US resident, you must pay taxes. In this case, it is will be lots of questions from the IRS. No matter you paid in BTC or with gold or silver. Are you paid taxes on this income? You is it legal to sell bitcoin in person for cash in trouble! Much better for him if he is pure man, and his loving grandma from Copenhagen or Belgrade pay with BTC for his house, car boat etc.
More important how you are sale. It is illegal to sell anything if you know that this item will be used for crime. So, if the buyer tells you that he will use a hammer to kill his neighbor and you are sale it to him anyway, you can be charged for this sale.
Same with Is it legal to sell bitcoin in person for cash, if the buyer tells you that he want to use the BTC to buy illegal drugs, and you do is it legal to sell bitcoin in person for cash refuse to deal and not report it to the police, you are committing a crime. About money services business. Money services business means you are buy and sale and get profit.
In US most of the states is not recognise cryptocurrencyes as money. And not regulate it yet. So, if you are just buying BTC for investment, nobody can charge you if you are doing this in a way to keep your identity in private.
And nobody can say that you are conducting a money services business. Same thing if you are just sale BTC if you doing this in a right way.
BUT If you are buying and selling, yes, it is a business, same as if you are buying and selling anything. You are required to register a business. You can not legally buy and sale potato or computers without register a business.
Any business must be registered. Running an unregistered business is a crime in the USA. But on the other hand, I am personally in favor of cryptocurencies because its unregulated decentralized nature, as well, I am in favor of any related to crypto decentralized services as P2P exchanges.
And register some crypto business will be against of all Idea of crypto I believe. So, I am trying to constantly learn about all changes in the regulations and related services to be up to date about the situation and avoid any negative issues. It is difficult for inexperienced enough people, to deal with crypto legally and safely. Many, have no Idea that they are in a violation of any law or doing transactions unsafe. Hope, this info will help someone.
I apologize if my post seems unclear in some parts. Even I live in the USA for over 25 years, English is not my native language, and I am not a professional writer, so if anybody has a question, feel free to contact me.
Is p2p bitcoin buying and selling in the USA considered a money services business?
