34

No. You have to pay taxes no matter what currency you are paid in, or for that matter, in most barter transaction as well. You would have to pay taxes even if you were paid in goats. Also, the counter-parties in transactions in which you are paid in Bitcoin and earn money often have an obligation to file information tax returns to the IRS. If you don't ...


16

In the UK it is an offence to cause a computer to gain unauthorised access to any program or data held in any computer (s1 Computer Misuse Act 1990). It seems likely that other European jurisdictions have similar laws. Certainly Germany does: Penal Code 202a data espionage (German text - English translation). (I mention Germany because the linked thread ...


13

The short answer is that a few individual trades would be legal (e.g. if you sell some to a friend), but doing so on a regular basis for profit (e.g. offering a sale price and a bid price to all comers) would not unless you get the appropriate licenses and comply with relevant laws. Doing this is onerous. Any kind of "money services business" is subject to ...


12

The Constitution only regulates the powers of the government; it doesn't directly say what the people can and can't do. In particular, it doesn't say directly that nobody except Congress can coin money. However, it does give the government the power to make laws, which are binding on the population. So Congress possibly could make a law forbidding ...


9

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 ...


7

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 ...


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

Is it legal to sell/Trade Bitcoin for Cash in USA, Virgina? Yes. Your mention that you want to "start selling some of [your] bitcoins" conveys that you have owned the bitcoins for a while. That falls short of the meaning of money business service, where a license would be required. See also this answer. From legal and practical standpoints it might be ...


4

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 ...


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

Taxable income (Merriam-Webster) as defined by the IRS is ...generally speaking, is the gross income of an individual or corporation, less any allowable tax deductions. Your taxable income is, in other words, the amount of your income that is subject to income tax. What is taxable income? | US Tax Center So if you have a good accountant, you may ...


4

Your question assumes that there is a method to find a block of bitcoins with a faster computation than the brute force method used so far. If such a faster calculation method exists, it is proprietary to the mathematics and our superhero has not invented it, he just discovered it and used it. It is not an insider trading case since everybody has 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

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 ...


4

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 ...


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

One question is whether Bitcoin etc. are money in a legal sense. They don't attempt to link themselves to any actual currency. It's perfectly legal to trade without actual money. Commerce is generally done (in the US) in US dollars, partly because everybody else does it, and party because the IRS needs accounting in dollars for tax reporting purposes. The ...


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

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 ...


3

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 (...


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

Any answer is somewhat speculative, because there are no significant legal precedents. That said, you are probably not in breach of counterfeiting laws, as they typically protect physical currencies. However, due to the way that laws are written, their scope may be somewhat fuzzy in areas that were not foreseen, so you may find that a law unintentionally ...


3

You will also need to file your taxes properly The IRS and state will view this as a sale of a security. Any capital gain must be reported on your taxes, i.e. your normal Form 1040 that you file before April 15. You'll need to add Schedule D to your tax forms. Also, if this is a significant surge of income (e.g. more than a whole paycheck), you may ...


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

Given that you're centrally keeping customer financial assets, you're looking at a banking license. At that point, the question is not whether you need a lawyer, but how many. "Note that the issuer/bank would not itself offer currency exchange". Neither the Fed nor the ECB do, and quite a few smaller commercial banks also do not offer currency exchange. ...


2

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 ...


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. ...


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

The transaction you cite shows that the coins left what I presume is your wallet and went to another. You say that you "used" a payment processor, who will presumably convert the coins to Euros and pay your vendor. If so then the processor now has the coins. However it is your responsibility to get the payment to the vendor by following their instructions. ...


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