Questions tagged [cryptocurrency]

Questions concerning the laws on creating, using, transfering and realising cryptocurrency.

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Do FCA rules mean financial firms have to refuse service if their customers are not knowledgeable enough?

I recent weeks I have had emails from multiple cryptocurrency exchanges requiring me to fill in a document online to keep using their services. They describe this as a questionnaire but say "You ...
User65535's user avatar
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2 votes
1 answer
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What kind of claims did Ryan Salame forfeit in the FTX trial?

There is a recent article about the trial of Ryan Salame surrounding the crypto-currency platform FTX. The article starts with the big headline that he forfeited $1,5 billion and then writes later on ...
quarague's user avatar
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2 votes
1 answer
158 views

How could someone whose trades are being copied be liable to the person who is doing the copying?

It is reported that someone was copying the trades of a noted NFT trader. This noted NFT trader profited from this by making an inflated bids on one of his own NFTs, and when the copycat replicated ...
User65535's user avatar
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1 vote
0 answers
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What requirements does the CFTC vs Ooki DAO Default Judgment place on token holders?

On June 8th, 2023 the District Court, N.D. California awarded default judgment against Ooki DAO for allowing illegal trading of digital assets, engaging in activities only allowed by registered ...
User65535's user avatar
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2 votes
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Is Crypto the same as any foreign currency?

A foreign currency exchange is nothing new. On the other hand cryptographic currency ("crypto" i.e. Bitcoin) is relatively new, as are their exchanges. https://abcnews.go.com/Business/...
gatorback's user avatar
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Does MiCA have any impacts on merchants (and their customers)?

The EU just passed MiCA (Markets in Crypto-Assets) to regulate crypto assets. One classification of crypto assets is a cryptocurrency, which includes digital currencies like Bitcoin. Most of the ...
Michael Altfield's user avatar
-1 votes
1 answer
66 views

is reselling virtual "in game" items legal in the USA?

If I were to buy virtual in game items through third party websites which is against the game's TOS with bitcoin then resell them for more money is that legal?
RyanM28341's user avatar
-1 votes
1 answer
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How to verify an arrest in Russia? [closed]

Assume the media reports that a particular individual has been arrested by Russian police. Others reports deny this. Is there any authoritative legal mechanism for ascertaining the true situation?
TylerDurden's user avatar
-5 votes
1 answer
71 views

Can I turn cryptocurrency into giftcards without being taxed? [closed]

Alright, so my idea is to trade crypto then turn it into giftcards since I don't have a bank account. I want to make sure taxes don't apple. Thanks for any help!
Not My Name's user avatar
2 votes
1 answer
51 views

How consumers taxed with a cryptocurrency prepaid card?

A store decided to issue a prepaid card that can be loaded with cryptocurrency and used only in that store. Will the customers pay tax when they load the card, use it, or both? I am interested in US ...
Ilya Gazman's user avatar
2 votes
1 answer
80 views

What features are used to distingish between investing and running a money transmitting business?

This question about the risk of money laundering prosecution one could face using decentralized cryptocurrency exchanges is answered by "Generally, local laws will define concepts like "...
Sam's user avatar
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6 votes
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Is it possible for an individual to commit money laundering like a bank?

In the classic example of money laundering, Charlie the Criminal would take his dirty money to Bob the Banker and get it in some form that is spendable and transferable. In this situation it would be ...
Sam's user avatar
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-2 votes
2 answers
350 views

My crypto exchange closed my account for no reason, how can I defend myself against it? [closed]

A couple of years ago, I opened an account in Bitpanda, deeming it a serious and professional crypto exchange. In the last year I haven't carried out any operations, a few days ago I decided to go ...
NineCattoRules's user avatar
2 votes
0 answers
62 views

How to find a US lawyer for consultation in the open-source + banking + blockchain space?

Considering writing open-source software in the banking/cryptocurrency space (in the USA). Want to do it properly, and have a few questions for how to navigate the space. What's the type of lawyer I ...
gs8282's user avatar
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0 votes
0 answers
513 views

Are flash loan attacks legal?

A new form of "money making activity" has emerged in recent years, the flash loan attack. In very rough terms, a loan of some cryptocurrency is taken out, the cryptocurrency is used in some ...
User65535's user avatar
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2 votes
1 answer
188 views

Is it legal to include a crypto miner in published software?

If I publish a program (say a text editor), and I include a cryptocurrency miner that puts all of the coins in my wallet (and the mining itself does not accomplish anything that benefits the user, e.g....
Someone's user avatar
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3 votes
1 answer
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What are the consequences of being party to a OFAC prohibited transaction?

The US Treasury has sanctioned Tornado Cash which is a tool for mixing Cryptocurrency. Since the sanctions don't actually stop this tool from working someone has used it to send small amounts of funds ...
blues's user avatar
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2 votes
0 answers
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If I create smart contracts for my clients on fiverr, upwork, etc., can I be arrested in Bangladesh?

The legality of cryptocurrency is a bit tricky in Bangladesh. A cautionary notice issued by the Bangladesh bank on December 24, 2017, said: My translation: Recently, it has been known from various ...
tryingtobeastoic's user avatar
-1 votes
2 answers
187 views

Is it illegal to borrow cryptocurrency without consent?

Suppose I obtain the ability to access someone else's cryptocurrency. For the sake of the question let's assume the means by which this ability was obtained wasn't itself illegal, e.g. I overheard ...
quant's user avatar
  • 212
3 votes
2 answers
379 views

Is it legal to create a cryptocurrency?

I want to create a new cryptocurrency as an experiment. Is this legal? My cryptocurrency won't use a blockchain, so laws specifically regulating blockchains might not apply. The system will be ...
Someone's user avatar
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19 votes
4 answers
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Is it against the law to sell Bitcoin at a flea market?

I think this would be a cool side gig and I have some ideas about how to make Bitcoin more accessible to the general public. But I don't want to break the law either. These would be normal flea ...
user875234's user avatar
0 votes
1 answer
421 views

How much stolen bitcoin must a wallet have to be legally recoverable?

TLDR: Under what circumstances could one successfully sue to gain control of stolen bitcoin? If it depends on what proportion of an addresses unspent output consists of your stolen bitcoin then what ...
User65535's user avatar
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1 vote
1 answer
122 views

How is a derivative work defined wrt "low entropy" artwork

CryptoPunks are a set of 10,000 Ethereum-based NFTs, each token corresponding to a unique 24 x 24 pixel cartoonish figure. They have been automatically generated from human generated components ...
User65535's user avatar
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2 votes
1 answer
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Could everyone with DAO tokens in the EU be punished under recent Transfer of Funds Regulations on KYC?

On March 31st the ECON and LIBE committees of the EU Parliament has voted to require cryptocurrency service providers to collect personally identifiable information from individuals who transact more ...
User65535's user avatar
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3 votes
1 answer
165 views

Is cryptocurrency more like money or stuff with regards theft?

I am sure there is a word that describes this concept, but I do not know it so I shall have to describe it. Suppose Alice has a mobile phone, Broke Bob steals it, sells it to Charlie's Mobile Phone ...
User65535's user avatar
  • 6,536
2 votes
3 answers
276 views

Who owns the intellectual property rights relating to a stolen NFT?

Bored Ape non-fungible blockchain tokens (NFTs) change hands for tens to hundreds of thousands of dollars. For this money you get two things, A) the technical ability to create transactions involving ...
User65535's user avatar
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1 vote
1 answer
29 views

What is GST status over Crypto transactions in India?

Even though profit from cryptocurrencies like Bitcoin and Ethereum are taxed at 30%, that is only on converting that into Indian fiat, only then the citizen has to pay the tax of 30% of profits of ...
Profile name's user avatar
2 votes
1 answer
119 views

Why can Dutch police order Binance to freeze funds of Colombian customers?

In short, Dutch police ordered Binance (cryptocurrency exchange) to freeze funds of some Colombian customers, and those customers are supposed to prove - to the satisfaction of Dutch police - that ...
xmrk's user avatar
  • 46
2 votes
2 answers
286 views

Capital Gains: If I loan Bitcoin to my LLC, can the LLC sell it to pay for expenses, and later repay the loan in USD tax free? (USA Law)

I understand that taking a credit line against Bitcoin collateral is not capital gains event because there is no sale. However, If a party, such as a company, is lent Bitcoin (BTC), sell it to pay ...
LegalInquirer2000's user avatar
0 votes
1 answer
76 views

Is cryptocurrency mining/staking profits "newly created property"?

Forbes Feb 2, 2022: "According to a May 2021 civil lawsuit filed by the couple, Joshua and Jessica Jarrett, any tokens gained through proof-of-stake should be considered “new property” created by ...
Jagu Land's user avatar
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1 vote
1 answer
140 views

How does contract law apply to smart contracts?

We quite frequently hear about some cryptocurrency company losing money because their software was exploited. From example today we have Qubit losing $80 million: The protocol was exploited by; ...
User65535's user avatar
  • 6,536
2 votes
1 answer
106 views

If you buy something only sold in cryptocurrencies - for example, a non-fungible token (aka NFT) - is that a potentially taxable event?

Suppose I buy one Etherium cryptocurrency coin and then purchase a non-fungible token for one Etherium coin. One cannot buy an NFT using any other currency than a cryptocurrency, but cryptocurrencies ...
moonman239's user avatar
  • 3,070
0 votes
0 answers
48 views

Avoid Capital Gain Tax Selling Borrowed Tokens

I live in UK, but wouldn't mind to get responses related to any jurisdiction. better explain with an example: I buy 180Tokens at $0.10 price. 1 year later I still have those 180Tokens. I freeze ...
user3755529's user avatar
0 votes
1 answer
78 views

What laws do crypto exchanges need to abide by?

So they need to collect personal information on each user most of the time right? But how thorough does this information need to be? Do the exchanges need to check with each government to make sure ...
Trevor Wood's user avatar
0 votes
1 answer
36 views

In what circumstances does an investment advisor have to register as a money transmitter?

As far as I understand it, an SEC-registered investment advisor that doesn't hold the client's assets doesn't need extra regulation pertaining to custody. If a robo-advisor like Betterment (although I ...
VampireTooth's user avatar
-1 votes
3 answers
123 views

Could someone avoid legal responsibility by transferring crypto coins multiple times between wallets before making an illegal purchase? [closed]

Suppose the following scenario. Someone creates two different crypto wallets without leaving an online trace that links their real identity back to the wallets in any feasible way. Then purchases some ...
kozmon's user avatar
  • 109
0 votes
3 answers
303 views

Can you avoid paying taxes on the Bitcoins you've sold by using a shell company outside of the U.S. and transferring the coins to it before selling?

Can you avoid paying taxes on the Bitcoins you've sold by using a shell company outside of the U.S. and transferring the coins to it before selling? I am wondering if there's a legal flaw in the ...
Sayaman's user avatar
  • 5,170
0 votes
1 answer
41 views

Does a cryptocurrency trading platform not require licensing if it does not offer trade of securities?

The article SEC Charges EtherDelta Founder With Operating an Unregistered Exchange states that: Over an 18-month period, EtherDelta's users executed more than 3.6 million orders for ERC20 tokens, ...
yeah22's user avatar
  • 117
-2 votes
1 answer
62 views

Can my bot trade crypto for others? [closed]

Is it legal if someone gives me their API key for phemex, with the intention that my bot ( which predicts and can trade each minute ) will trade for them? Alternatively, if I license software which ...
dansch's user avatar
  • 99
0 votes
2 answers
135 views

What crime could occur while processing non-fungible tokens without copyright?

Alice creates a non-fungible token (NFT) of a digital file that they do not own copyright of. She adds the token to the ethereum blockchain, and creates a transaction that transfers it to a wallet ...
Dave's user avatar
  • 827
0 votes
0 answers
73 views

Are there any cases in which click fraud is legal?

I recently had an idea for a small cryptocurrency in which instead of paying with real money, you pay with clicks on pay-per-click ads and a portion of the revenue that the website makes off of that ...
Federico Fusco's user avatar
1 vote
0 answers
67 views

Cybercrime use of cryptocurrency and stolen goods laws

I've been wondering if this line of reasoning has been tried anywhere in the world, successfully or unsuccessfully. It seems improbable that I'm the first to think of it ... A cryptocurrency is a bit ...
o.m.'s user avatar
  • 16.5k
0 votes
1 answer
125 views

I told my friend I'd give him £10 in Bitcoin for their birthday 5 years ago but never did. Am I liable for £0, £10 or £1000?

Two questions. Firstly, is it enforceable. Secondly, if it were, would I owe £10 in Bitcoin now, or the amount of Bitcoin at the date £10 would get you 5 years ago? I believe I've answered the first ...
Jonathan Clark's user avatar
0 votes
1 answer
99 views

Is there any doubt about crypto-currency and like-kind exchanges?

If I sell crypto, can I purchase new crypto and avoid paying capital gains tax on it? It seems the IRS is very clear about it, Under the Tax Cuts and Jobs Act, Section 1031 now applies only to ...
Evan Carroll's user avatar
  • 2,141
-7 votes
1 answer
356 views

Creating my own crypto [closed]

Imagine this I create my own defi cryptocurrency I take out loans denominated in the currency, ie, legal contracts to give people money in the future Then, I print more money for myself to inflate ...
user avatar
-2 votes
1 answer
100 views

How can Bitcoin related complaints be accepted? [closed]

Why are Bitcoin related complaints accepted in some countries? It's basically just few letters and numbers used in a autonomous non-regulated system. It has value only because random people give them ...
Alexis's user avatar
  • 99
1 vote
2 answers
229 views

Legality of Chaumian e-cash

In the 1980s, David Chaum, a cryptographer, came up with micropayment system that would achieve cryptographic transaction privacy. Later, in the 1990s, he attempted to build this system, but it did ...
David Tamnder's user avatar
3 votes
1 answer
107 views

Harper v. IRS and the third-party doctrine

On tax day 2020, plaintiff James Harper accused the IRS of obtaining his cryptocurrency transaction history from Coinbase without a warrant. Harper is claiming the IRS violated his rights under the ...
Gascoyne's user avatar
  • 163
2 votes
4 answers
203 views

Sanctions against dealing in Bitcoin

Some countries are treating dealing in Bitcoin as seriously as drug-dealing and money laundering [0]. Suppose that you are a citizen of another country (and normally live in it) that does not have ...
Pat-S's user avatar
  • 217
1 vote
0 answers
112 views

"Counterfeiting" Ethereum tokens: is it considered illegal?

ERC20 tokens are cryptocurrencies built upon the Ethereum blockchain. These tokens can be used for buying, selling,smart contracts, etc. See more information here: https://cointelegraph.com/explained/...
Anonymous's user avatar