7

The ultimate question is whether an obviously joke enterprise constitutes a real offering of securities or just performance art (a Ponzi scheme is one of many types of securities fraud). An unregistered offering of securities that does not fall within an exception is per se unlawful under federal law, but a security is generally defined as something offered ...


5

It's always amazing to me why some people find it so difficult to understand, just because the word "crypto" is involved. It goes like this: Cryptocurrency is an asset, like any other asset. It's also a currency, but that part can be ignored for this purpose. Buying an asset, any asset, is (usually) not a taxable event. "Buying" in this case consists of ...


5

When does it become illegal to exchange bitcoin for cash? When the transaction purposefully skips the controls in place regarding anti-money laundering. Generally speaking, the issue is not the mere involvement of cryptocurrency in a transaction, but the crimes a wrongdoer seeks to camouflage or conceal by means of cryptocurrencies. Such crimes typically ...


4

Here are the suggested federal jury instructions for aiding and abetting: To "aid and abet" means intentionally to help someone else commit a crime. To establish aiding and abetting, the government must prove beyond a reasonable doubt: First, that someone else committed the charged crime; and Second, that [defendant] consciously shared the ...


4

The United State doesn't have a national sales or value added tax, so the IRS would only care about the phone sale insofar as it might represent income to the seller. Insofar as it's income to the seller, it doesn't matter whether the transaction is cash, bitcoin or barter, the seller is supposed to account for it in their income taxes. If you are suggesting ...


4

It comes down to intent ... and possibly responses to illegal activity. Localbitcoins intention is to facilitate trade in bitcoins - in itself a legal undertaking. Cryptocurrancy transactions can be used for illegal purposes but it is not the sites intention to enable that. Amazon.com intention is to facilitate trade in books - in itself a legal ...


4

I see that this would put me under heavy US regulation, and I'd like to avoid that, since it would require huge funding to hire lawyers to do something like that. There are many reasons for financial and banking industry regulations; namely, fraud protection, corruption and money laundering preventions, use of crypto to avoid taxes and records, etc. If ...


3

The applicable law is the New Zealand Anti-Money Laundering law. The regulations describing exactly what is covered don't mention Bitcoin cleaning, but the "wire transfer" and "currency exchange" bits probably cover such a thing. I certainly wouldn't like to be the test case. There was also this case in Europe.


3

Yes you would. Bitcoin is a form of property right or asset, just like any other form of wealth. And, income is a positive increase in the sum total of your property rights. You might be able to take deductions in connection with whatever you parted with in order to obtain a bitcoin, depending on the transaction, just as you might be able to take a ...


3

In the United States, no. For something to be illegal in any meaningful way, you have to be able to point to a law that makes it illegal. If there's no law to break, it's not illegal. I would wonder if your colleague was thinking about question of whether cryptocurrencies are legal tender. For something to be "legal tender," there would need to be some kind ...


3

The most important thing to realize is that such an App will probably never be accepted into the Apple App and/or iTunes store if you submit it without the mining disclosure in the end user's TOS. Apple reserves the right to accept or decline any App in the App store; they will evaluate your App after you submit it, and when they find the crypto mining ...


3

There is a federal law, 18 USC 2252, which criminalized distribution and receiving of child porn. One part of the law addresses a person who (1) knowingly transports or ships using any means or facility of interstate or foreign commerce or in or affecting interstate or foreign commerce by any means including by computer or mails, any visual ...


3

No LLC or corporate entity exists around or in relation to SoftDAO. That's a bad thing, not a good thing, to those involved. Mr. Founder is obviously liable. When he wrote the DAO, he intended that it compete with IncumbentCo, and thus almost certainly intended that the software would violate the patent. And it doesn't matter that he's not the majority ...


2

It isn't clear what kind of tax you are concerned about. The IRS would collect income taxes in connection with this transaction. The seller of the phone (if a U.S. citizen or resident or conducting business in the U.S.) has sales revenue equal to the fair market value of the bitcoins in U.S. dollars, and if revenue exceeds expenses, there is a taxable ...


2

For the most part, you cannot influence the actual regulations. If you dislike the authorized delegate advertising regulation, you would have to undermine the underlying statutory authority, RCW 43.320.040 and RCW 19.230.310. The legislature can change those laws, so write to the legislature; or, you can change the law via the initiative process which is ...


2

Are there such restriction for F-1 students who have been in the US for less than 5 years, who are non-resident aliens for tax purposes and are actually not citizens of the US but are citizens of another country? Short Answer For the most part, citizenship and immigration status are legally irrelevant to your eligibility to participate in an ICO (...


2

No, consent is not required. There are six lawful bases for processing personal data, see Art. 6. A bitcoin node can base it processing on "performance of a contract" (adding data to the blockchain) or "legitimate interests" (processing existing data). Bitcoin nodes can be considered joint controllers (Art. 26) because they vote and choose a fork to follow. ...


1

Your last paragraph asks for legal advice which is off topic here; you should talk to a lawyer. Having said that: You may not be able to prove you owned the BTC when they were only worth 250 USD, but how far back can you prove you owned them? If you can show you have held them for a while it strengthens your claim. Can you get your friend to testify about ...


1

This is a "how things are in practice" answer, not statutory. The ruling question is whether the virtual currencies are readily exchangeable for USD. For instance if there is a thriving, open currency exchange where I can convert 1000 World of Warcraft gold into 1 USD and back again anytime I please, then WoW gold takes on the character of a foreign ...


1

The site is worded as a parody, so it's likely this isn't a thing. Further, there is now a disclaimer on the site that says This has gotten crazy out of hand, I apologize but we will no longer be selling PonziCoin on this site because this was a joke. I cannot terminate the contract but I will not be selling any coins that I own. In the Q&A section, ...


1

Theft is not defined in terms of how long you have someone's money. The most important element of theft is that there be an intent to permanently deprive. Theft is a crime, prosecuted and punished by the government, which does not result in compensation to the victim (though if there is actual physical property involved that the police recover, it will be ...


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