Questions tagged [legal]

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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1answer
90 views

Can I use my Bitcoins to buy household commodities just like ordinary money?

Can I use my Bitcoins to buy household commodities just like ordinary money? You see, I'm a newbie and have yet to learn the basics including all the facts about Bitcoins. However, I want to be ...
5
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1answer
407 views

The context of FBI involvement with Bitcoin

A number of articles appeared recently linking to a leaked document about Bitcoin written by the FBI. Bitcoin Virtual Currency: Unique Features Present Distinct Challenges for Deterring Illicit ...
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2answers
379 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 ...
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2answers
112 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 ...
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1answer
1k 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 ...
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2answers
687 views

Are there mixing services or online wallets that are explicitly compliant with anti-laundering laws?

I'm interested in mixing services (0% taint) that are compliant with the most conservative anti-money laundering laws. My goal is to have anonymity between peers in a transaction, but to remain ...
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2answers
1k 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 ...
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1answer
451 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 ...
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1answer
1k 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 US....
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1answer
228 views

What aspects of Money Order laws will apply to merchants who use Bitcoin?

There are several money order laws that apply to merchants who accept them. Bitcoin seems to have properties of a money order, but also some aspects of value that are driven by demand. I'm looking ...
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3answers
323 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 ...
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4answers
164 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 ...
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147 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 ...
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Is Bitcoin a currency?

This question seems to be asked every now and then when legal status of Bitcoin is discussed - Is Bitcoin a currency? What are the characteristics that would make it a currency, and what makes it ...
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327 views

Should earnings in Bitcoin converter to a traditional currency be treated as trading-income or non-trading income for tax purposes?

Should earnings in Bitcoin converter to a traditional currency be treated as trading income or non-trading income for tax purposes (for example, in Ireland)? Reason for them being considered trading ...
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1answer
174 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?
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373 views

What are the qualities of a country that might make it more or less likely to freely allow Bitcoins or crypto-currencies?

As some examples which seem logical to me, but should only be taken as examples: A government that is susceptible to commercial lobbying is probably more likely to be pressured by banks to disallow ...
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3answers
941 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. ...
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1answer
24 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. ...
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2answers
365 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 ...
6
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1answer
125 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 legal ...
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1answer
444 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?
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1answer
565 views

bitcoin knowledgeable attorneys?

I'd like to accept freelance work with bitcoin, probably a large enough amount to consult a lawyer. What kinds of questions would you ask to make sure they're competent? How would you go about ...
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2answers
5k 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 ...
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1answer
360 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 ...
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1answer
259 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?
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1answer
325 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 "...
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2answers
666 views

Does the U.S. Securities and Exchange Commission govern Bitcoin?

Do SEC regulations apply to: Exchange of Bitcoin for US dollars Investing in companies with Bitcoin An exchange that sells shares of company stock for Bitcoin Bitcoin futures contracts
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1answer
241 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?
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2answers
220 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 ...
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2answers
1k views

Tax implications in Canada of buying and selling Bitcoins?

What taxes should be paid in Canada on Bitcoin transactions? Has anyone gotten official advice on this? Is it relevant whether the Bitcoins were mined, received as payment for services, bought and ...
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1answer
894 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 ...
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1answer
475 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 ...
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1answer
65 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
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1answer
208 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 ...
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3answers
498 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 ...
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1answer
135 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 ...
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4answers
1k 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 ...
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2answers
172 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 specifically,...
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2answers
429 views

How do lawyers view Bitcoin?

Have there been any articles or presentations about Bitcoins in any influential or respected law-related websites or perhaps interviews with notable lawyers or the like?
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1answer
266 views

Do private people mining or exchanging Bitcoin with Fiat fall under FINCEN's definition of “user”?

Fincen's March 2013 report defines: A user is a person that obtains virtual currency to purchase goods or services. An exchanger is a person engaged as a business in the exchange of virtual currency ...
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1answer
164 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 ...
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1answer
241 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 ...
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5answers
953 views

What money transmission licences are relevant to Bitcoin?

Tradehill was shutdown for various regulation issues, including not having the required money transmission licenses. What were the money transmission licenses that were required? What other ...
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1answer
151 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) ...
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3answers
589 views

Defense from Government Intervention

What's to stop a government, say the U.S. government, from saying "Hey, it's okay if you want to use Bitcoins, but you have to use at least version 0.6.3". And then a year later changing the law to "...
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1answer
129 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 to ...
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3answers
471 views

Easiest way to set up non computer-literate person with Bitcoin

What would be the easiest/quickest way to get somebody who isn't computer-literate set up to have the ability to transfer money to me via Bitcoin? Also, Bitcoin touts that it is anonymous. Is it any ...
3
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1answer
139 views

MtGox-Api License

I want to use the data of the MtGox-API for my (commercial) website. I want to show their data as an exchange-rate, but, of course, I will link to their site and cite them as source. I couldn't find ...
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6answers
3k views

Is it true that Paypal banned Bitcoins, while Google Checkout did not (yet)?

Paypal claimed they were not allowed to sell Bitcoins, while currently it seems Google Checkout is a viable option. So ... what's the story on this? Is this true, and if so does anyone know why?