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 ...
But lately he has had his friend use my PayPal account. Someone will send me money and then I transfer it to where he tells me. To cash app or venmo.
That's money laundering. Definitely illegal.
He said it's money owed for cellphones.
People in jail aren't supposed to have cellphones. You are helping him break the law, which means you are helping him ...
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 ...
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 ...
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 ...
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.
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.
This would not be "legal jeopardy" per-se, really the only remedy that Stack Exchange would have in a case like this would be to ban both accounts. It would be different if you caused SE some kind of monetary/reputation damages to the site itself.
From SE's Acceptable Use Policy:
Identity Theft and Privacy. Users that misleadingly appropriate the ...
Credit card surcharges, where a customer is charged extra for using a credit card, are prohibited in 11 states. There are also 10 states that allow merchants to offer cash or non-credit discounts, and at least in those states there is increased awareness among consumers that credit card companies charge fees. There is no law requiring credit card companies ...
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 ...
You are running a business
One that holds sporting events and sources it’s funds from the public who are interested in supporting those events. It doesn’t matter if you business is for profit or not-for-profit it’s still a business.
You are no different from any other business.
All the normal laws apply to you - tax, liability, insurance, employment, ...
If PayPal are in breach of their contract you can sue for damages
Economic loss is calculable and there are various methodologies for doing so. Your lawyer will probably have you engage an expert witness to do so. No doubt PayPal will have their own expert to explain to the court why your expert is FoS (and vice-versa).
However, it’s extremely unlikely ...
I don't think this has been addressed, but:
Contact a lawyer
You shouldn't trust random people on the internet with this. You feel uncomfortable, and potentially participate in crimes. You should talk to a specialist, talk to a lawyer.
That doesn't seem like a very complex problem, but you need a legal advice. There are some non-profits that help with ...
The name of the show and many other elements of the show would be protected by trademark and quite possibly by copyright as well.
Your work would be a derivative work of the television show in all likelihood and hence barred by copyright law.
Unless the game is patented, basic concepts and ideas embedded in the game cannot be protected as ...