Legal issues relating to the use of Bitcoins or similar crypto-currencies. This includes issues of legal compliance with legal areas such as taxation, money laundering, international currency controls, and so on. Please do not ask for legal advice.

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4
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2answers
74 views

Are Bitcoin / Cryptocurrency free & paid “Faucets” illegal in the USA?

I was wondering if Bitcoin faucets were illegal in the USA? What about a paid bitcoin faucet where you pay in other coins to get a few cents worth of BTC?
2
votes
1answer
51 views

Are there any tools to visualize where the transactions are coming from and going to?

We spent some time doing the visualization of the transaction flow between bitcoin wallets https://bitviz.visalyze.com and wanted to know if there are any tools that can not only track, but also ...
1
vote
2answers
48 views

what countries accept and refuse BTC as money? [closed]

I am thinking where to find list what countries refuse or accept bitcoin as money? I read Denmark doesn't make tax for BTC because it is not accepted by the state as money. it has and legal ...
0
votes
2answers
92 views

Class action suit against Mt. Gox?

This NY Times article says a Chicago law firm is representing Mt. Gox customers in a lawsuit against that company. I had a small about of bitcoin in a Mt. Gox account. The law firm has not contacted ...
4
votes
1answer
53 views

How to file bitcoin income to the IRS as a nonresident alien

I am a Chinese student in US right now, and my taxation status is Nonresident Alien. Since IRS has announced bitcoin as "property", I just wonder how to define my gains from my sell of bitcoin in ...
2
votes
1answer
19 views

BTC for political donations?

When I am asked to make donations, I assure the requester that I will donate if they accept BTC. Initially, that gets a blank look, but I wonder how it might change if more of us took that approach. ...
2
votes
4answers
62 views

How do I start accepting bitcoins legally in Canada?

I own a business and I want to know how to accept bitcoins for payment and whether it is legal to accept them in Canada? For example, if someone pays me 2 bitcoins for a computer, do I need to charge ...
1
vote
4answers
548 views

Why is it so difficult to track & recover stolen Bitcoins?

I have to admit I don't fully understand the Bitcoin protocol. But from what I do understand, transactions are traceable -- it is the main reason decentralization works: the world can watch and ...
3
votes
2answers
904 views

How safe is my USD deposit at Bitstamp?

With Mt.Gox probably going insolvent/broke in these days, how safe is my USD account balance with Bitstamp? Is Bitstamp as a company registered with some financial institutions? Are customers USD ...
2
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2answers
300 views

At what point does the criminal get caught?

Settle an argument for me. Assume a criminal does the following: 1: goes thru trash to find a cancelled check 2: using a wifi hotspot like McDonald's and "Hide my ass" buys bitcoins with stolen bank ...
5
votes
1answer
52 views

Official Canadian source saying bitcoin is not legal tender?

I've been reading a lot that Canada no longer considers bitcoin legal tender. "Only Canadian bank notes and coins are recognized as legal tender in Canada. Bitcoin digital ‘currency’ is not ...
1
vote
1answer
192 views

How old does one need to be in order to mine or use Bitcoins? [duplicate]

How old does one need to be in order to mine or use Bitcoins? Do I need to be 18 years old, or just 13? Is it illegal if a child uses Bitcoin?
1
vote
1answer
51 views

Does this FinCEN Document mean the Bitcoin Network is a bank?

Read this document and see if you think they are talking about Bitcoin. Here's an excerpt.. Any individual or group of people engaged in conducting, controlling, directing or owning an informal ...
2
votes
1answer
585 views

Is it legal to start a Litecoin mining pool in the US?

My question is this: Given all the regulations in the USA, is it legal for me to start my own litecoin mining pool here in the US?
1
vote
1answer
301 views

What future can bitcoin have if more and more countries will ban it?

As of today, Russia added itself to a list of countries that ban bitcoin operations. So is there a future for bitcoin (and other cryptos) if more countries are going to ban them?
1
vote
2answers
463 views

Correct use of the word Bitcoin [duplicate]

I'm still unsure when to use Bitcoin and when bitcoin is more appropriate. Did anyone define when to use the word Bitcoin with a capital B? Is one used to talk about the currency as in "3 Bitcoin" and ...
6
votes
3answers
167 views

How can I tell whether transactions were (not) made via BitPay / Coinbase?

Background Recently, Rep. Steve Stockman posed for a photo op with his Bitcoin address on a big QR code, which got shared. He has a Bitcoin donation page which asks for identifying info and goes ...
2
votes
1answer
175 views

Is it legal to trade bitcoins on coinbase/mtgox in the US?

I am just wondering whether it is legal to trade bitcoins in the US just like we do for stocks? I see similar legal questions about selling OTC, but I am more interested in buying and selling in well ...
3
votes
2answers
161 views

How can the blockchain survive without an army or other kind of law enforcement?

I'm sold on most of the Bitcoin aspects. I believe that the blockchain has incredible potential value and how the fact that it's decentralized removes a lot of the corruption and cronyism that are ...
4
votes
1answer
284 views

Can I be held liable if a gateway vanishes?

I'm beginning to wonder what my liabilities may be once I start using a system like Ripple. For example if a gateway I'm using (say Bitstamp) suddenly vanishes, could I, as a user of Ripple and ...
1
vote
2answers
3k views

Is it legal to use rented dedicated servers to mine?

I've got several dedicated servers which I'm renting for about 250 Euros from a big hoster (OVH). These server are used for things like ssh/scp, SVN and Git servers (for private repositories), HTTP ...
2
votes
1answer
101 views

Are bitcoin wallets money service businesses (MSB)? [closed]

Do hosted wallet services located in the USA need to register with the fenCEN as a MSB?
4
votes
4answers
1k views

How to file bitcoin income to the IRS

I want to check if there is any specific tips how to properly file income from speculation with BTC to the IRS. Also is there any specific report from the Coinbase available?
-1
votes
1answer
286 views

Is it illegal to trade Bitcoin OTC in the United States [duplicate]

I am considering selling Bitcoin OTC. As far as the legalities go, is it legal to anonymously trade Bitcoin for cash without taking KYC information and registering with FinCEN? I know all the "big ...
3
votes
1answer
212 views

Do bitcoin exchanges based outside of the US who serve US customers have to register with FinCEN as MSBs?

From what I understand, Bitstamp is not registered with FinCEN, whereas Mt.Gox is, does this mean Bitstamp is in danger of being shut down?
-1
votes
1answer
54 views

Does using bitcoins require a “K-1” under some circumstances?

That's it...whenever currencies are traded, the possibility of a K-1 form arises, and since we're dealing with the dollar and the bitcoin here, and some people just trade the two without using them ...
2
votes
1answer
118 views

Tax deduction for US-based employer paying in Bitcoin to overseas contractor

My employer can write off business expenses (my salary) if he pays me via wire transfer, PayPal, Payoneer and some other international payment systems. Is there a tax-deductible method for him to buy ...
0
votes
0answers
71 views

Government seizure of Bitcoins [duplicate]

When a Bitcoin is seized by a government entity such as the U.S. and the Silk Road, what happens with the Bitcoins? If there are supposed to be only 21 million BTC and the confiscated ones are never ...
-4
votes
1answer
113 views

Bitcoin Casino Questions [closed]

I am developing a bitcoin dice based game. I am located inside the US. Do i did a gaming license to operate. Is it completely legal if not?
11
votes
6answers
13k views

Did I just get defrauded by Coinbase?

I bought 10 bitcoins, 4.5, and .4 on Oct 18/19 @ around $150-160. On Oct 24, within almost the hour that the coins were supposed to arrive, I receive the following email for all 3 transactions: ...
2
votes
1answer
112 views

Ramifications of illegal content in transaction messages?

Would it be possible to make using Bitcoin illegal by posting child porn or similar highly illegal content in the message of a transaction? There are methods for having 'thin clients' that don't ...
3
votes
3answers
1k views

What's the minimum age to join or use Bitcoin?

What is the minimum age a person must be to use the Bitcoin service?
0
votes
3answers
580 views

Is BTC and Crypto Currency Illegal in USA

My close friend who is the biggest currency rebellion I know. He introduced me to Bitcoin. Earlier he told me about some guy called Nothaus who created currency, in HI. However he got arrested for it. ...
1
vote
1answer
113 views

How do I monitor and track the legal proceedings of Silk Road founder Ross Ulbricht?

I'm interested in tracking the litigation, timing of hearings and other matters relating to the case against Ross Ulbricht. What website, or resource would have up-to-date information of upcoming ...
2
votes
4answers
233 views

Is it legal to embed a miner in another open source program for benifit of the programmer?

So say I am writing an open source program, or any program really, and I embed a Bitcoin miner in the code, so that when people run my program, they would be earning Bitcoins for me. Would this be ...
1
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3answers
325 views

Need an explanation as to why the exchange of BTC for USD is legal

Many have asked if the exchange of BTC for USD is legal, and they will cry "legal" and simultaneously cite FinCEN's regulations for a MSB. However, they never explain if an individual trading BTC ...
25
votes
2answers
770 views

What does the US government do with seized coins?

It was reported today that the US government shut down the web site Silk Road, where people bought and sold things (allegedly including illegal drugs) using Bitcoins. The operator was arrested, and ...
1
vote
1answer
555 views

Sellin Bitcoins on Coinbase legal?

so I have been using coinbase to buy maybe around 60 dollars worth of bitcoins. My question is if i sell for 200 dollars, is that legal? I used bitcoin casinos and the natural increase of bitcoin ...
0
votes
1answer
84 views

What are the (non-escrow) methods people are using to minimise bitcoin transaction fraud?

Direct peer-to-peer bitcoin transactions are irreversible; and relying on a centralised escrow or reputation service for fraud protection is contrary to bitcoin's decentralised philosophy. What other ...
3
votes
2answers
138 views

Where to find a list of Bitcoin attorneys?

Does anyone know where to find a list of attorneys well-versed in Bitcoin? A standard Google search has yielded decent results, but just wondering if this already exists somewhere. More ...
3
votes
1answer
309 views

Is it legal to convert bitcoin to USD?

I've been told by many people that bitcoins are fully legal to use as currency, but not legal to convert to USD and use as US currency. Is this true? If so, what references back this up? If not, what ...
1
vote
1answer
180 views

Legal question regarding rippling balances between Ripple gateways

Let's say a ripple user were to extend trust to both Bitstamp and Snapswap to owe him 100 USD. He offers to trade USD-Bitstamp-IOU for USD-Snapswap-IOU at an exchange rate of 1:1. Would he have to ...
1
vote
1answer
89 views

Are Bitcoin in Thailand illegal?

I have read conflicting reports on whether Thailand declared Bitcoin illegal or not. What has happened and how did it affect Bitcoin commerce in Thailand? To what degree are there restrictions? I.e. ...
3
votes
6answers
690 views

For US Tax purposes, is Bitcoin mining more like property, “work to solve a puzzle” or “winning a lottery”?

From a taxation perspective, I think it's important to clarify if running a Bitcoin mining operation is more like property exchange, labor to solve a puzzle, vs winning a lottery that runs every 10 ...
1
vote
1answer
108 views

How does the New York subpoena of important people in Bitcoin affect the currency? [closed]

Forbes: Every Important Person In Bitcoin Just Got Subpoenaed By New York's Financial Regulator. Quote: The department is starting out by subpoenaing 22 digital-currency companies and investors ...
6
votes
2answers
2k views

Are there any legal implications when using localbitcoins.com?

You can get BitCoins for under 100 bucks via CoinBase and there are people on LocalBitCoins who are advertising offers to buy BitCoin for over 100 bucks. The spread is around $10; so I was ...
7
votes
1answer
1k views

Legal issues / banking issues selling Bitcoins to people OTC?

I'm wondering what the practical / legal limits are on selling Bitcoin as an individual using Craigslist and LocalBitcoins. Will I run into legal issues / frozen bank accounts as I scale this? Right ...
4
votes
1answer
188 views

Are Ripple IOUs e-Money under European law?

It has been confirmed by multiple sources that Bitcoin is not electronic money according to EU Directive 2009/110/EC, mainly because it does not represent "a claim on the issuer" and does not have a ...
1
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1answer
109 views

When thinking about e-currency in a general sense, what features discourage black market usage, but promote anonymity?

I'm interested in e-currency that discourages black market usage (child porn, meth deals, etc) but allows for anonymous operation (donations to charity, buying a pizza, viagra, or other health issues) ...
8
votes
6answers
1k views

Traditional VC investment vs. bitcoin IPO

There are few Bitcoin "stock exchanges" trading mainly BTC mining company pass-through shares, like https://btct.co/ https://bitfunder.com/ We are planning to get investment for our ...