Skip to main content
Share Your Experience: Take the 2024 Developer Survey
17 votes

How can government "seize" bitcoins?

It is not necessarily true that no amount of force or authority can cause or prevent any transfer of Bitcoin. The protocol does not allow arbitrary seizures or blocking, but there are still human ...
Ava Chow's user avatar
  • 70.8k
12 votes

How can government "seize" bitcoins?

A lot of bitcoins reside in a trading platforms or online wallets. These bitcoins are (in the particular bitcoin sense) controlled by the platform. The government (provided the platform/wallet is in a ...
fraxinus's user avatar
  • 301
10 votes
Accepted

How come a company partners with Bitcoin?

I was checking out the Bitcoin website There is no such thing. There are various communities and privately-run sites, but they are all distinct, and none are authoritative. I believe that Bitcoin ...
Pieter Wuille's user avatar
7 votes

Why do people claim that governments cannot confiscate Bitcoins?

While it is true that Bitcoin can still be physically taken away from you, it is still much harder to do that than it is for a government to confiscate your fiat stored in a bank account (as most fiat ...
Ava Chow's user avatar
  • 70.8k
7 votes

How can government "seize" bitcoins?

Other answers have covered how/if this is possible in theory, but you may be interested in how it actually happened in the specific case you mentioned. The press release links to a PDF of the ...
Robert's user avatar
  • 171
6 votes
Accepted

Does running a standard Bitcoin full node mean your node verifies transactions of other members?

The purpose of a full node in Bitcoin is to independently verify the consensus rules for transactions and blocks. This means your node will check every transaction and every block before accepting it ...
josie's user avatar
  • 681
5 votes
Accepted

How can a DAO seek enforcement of a contract?

The DAO's service provider would hire the person, not the DAO. The contract would be with the service provider, and the service provider could then sue the agent if the task wasn't completed as the ...
David Schwartz's user avatar
4 votes
Accepted

If Bitcoin is not controlled by the state, how come in some countries it is illegal?

A party can send a hexadecimal string to another party and nobody in the world can prove bitcoin or any form of money was sent. Governments can ban bitcoin usage but the bitcoin protocol is ...
Kang's user avatar
  • 450
4 votes

Is buying bitcoin with paypal legal without laundering concerns?

While I’m not an attorney, the website you describe would be considered a “money transmitter business” (MTB) which, in the US, falls under the jurisdiction of The Dept. Of Treasury FinCEN (Finacial ...
Dr.Plastics's user avatar
4 votes

Accepting Bitcoin for Services Rendered with Legal Verbiage on Set Coin Price

If you want to go all in on cryptocurrency, you can make an agreement stating the payment method as BTC or ETH and then the amount. The value of these currencies may vary with time and hence no one ...
Junaid Shaikh's user avatar
4 votes
Accepted

Does it make sense to design a mutable blockchain?

I agree more context is needed to provide a more directly meaningful answer. But in general: a blockchain allows users to interact without trusting a central authority, instead they verify the ...
chytrik's user avatar
  • 18.3k
4 votes

Is there a way to report/shutdown a Bitcoin Criminal/Bad-Actor?

Bitcoin is supposed to be permissionless and censorship resistant. That's the whole point. So, no, you can't do that.
Kristaps Kaupe's user avatar
4 votes

How can government "seize" bitcoins?

You said yourself: " I.e., short of coercing whoever has the private key to disclose it..." And that's exactly how a government can seize bitcoin, or how an unscrupulous criminal can get ...
gnasher729's user avatar
4 votes

Why does Bitcoin fail the Howey test?

You are confused, if an asset fails to pass the Howey test it is NOT considered a security. It is a highly common misunderstanding. This was also made clear by BTC not being listed by the SEC as a ...
Poseidon's user avatar
  • 643
3 votes

Is it legal to buy Litecoin and sell those within a few minutes?

I cannot think of any law it would violate. But legal advice needs to come from a lawyer who you hire. Note that if you sell it for more than you paid to buy it, regardless of how long you held it, ...
Nate Eldredge's user avatar
3 votes

Pump & Dump communities. Are they legal?

Legality depends largely on jurisdiction, and you didn't specify one. In addition, the regulation of cryptocurrencies is constantly in flux, and even in a given jurisdiction it's difficult to say ...
Jestin's user avatar
  • 8,812
3 votes

Technological contractor for an ICO legal advise

While I think the project as some merit, I am concerned about any legal liability I could hold. That's a good thing to think about. The company that wants to hire me has declared to me that the ...
Nick ODell's user avatar
  • 29.4k
3 votes

What legal items should I know about if I am piggy-backing off of another bitcoin exchange?

If you're worried about regulation, you should be contacting a lawyer to help you remain compliant.
MCFX2's user avatar
  • 29
3 votes

What to do when you genuinely don't understand anything about taxes, yet are apparently expected to pay them for your Bitcoin?

If I cannot understand the laws/regulations, what am I supposed to do? A fairly widespread legal rule is that ignorance of the law is no defence. If you don't understand how the law applies to your ...
RedGrittyBrick's user avatar
2 votes

How can I officially prove that a Bitcoin private key is owned by an entity?

A middle man trying to create a business around being a middle man with a technology thats supposed to remove intermediaries? It seems like you could accomplish what you want with multisig wallet and ...
CQM's user avatar
  • 1,590
2 votes

Is there a central repository that states a country's latest policy on bitcoin?

The best I found so far is Wikipedia. It is actually quite up to date. https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country
Tamir's user avatar
  • 61
2 votes
Accepted

Do I need to pay taxes if I sit on (do not use) bitcoins?

No. Assuming you are not a miner or receiving bitcoin in exchange for services, there are no taxes that you need to pay on the bitcoins until you sell or transfer them. When you sell or transfer them, ...
David Schwartz's user avatar
2 votes

Who is liable my case or is it a classic hack?

If the blockchain shows the money was in your account, then they have fulfilled their requirements. At that point, any transfer of money OUT of your account needs to be signed by your private key. ...
AMADANON Inc.'s user avatar
2 votes

Pump & Dump communities. Are they legal?

Therefore, those who managed to buy it early and sell it in time, get profits. Actually, they don't. For three reasons: To execute a pump & dump, you have to keep buying even after the price has ...
David Schwartz's user avatar
2 votes
Accepted

Is it legal to buy concurrency in USA

Yes. It is legal to buy cryptocurrencies in the USA and they are taxed like property by the IRS. See https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory#North_America From the ...
Jimmyjay's user avatar
2 votes

If someone bought an old computer and found Bitcoins in it, could they use it (legally)?

This is going to depend a lot on many surrounding facts. Including where this happens. How you acquired the computer and whether you know who the owner is. I'm most familiar with the law in Australia ...
 mynt's user avatar
  • 106
2 votes
Accepted

Does Bitcoin have a legal expert/team that does their work?

BITCOIN is a software ecosystem, and not owned by "someone". Similiarily you could put some code [echo "hello world"] on github, and it would be publicly available. Then there is also no "they", or an ...
pebwindkraft's user avatar
  • 5,096
2 votes

Reject transaction because of illegal data

There have been miners that rejected transactions with OP_RETURN because its unnecessary spam. Virtually every node and miner limits OP_RETURN outputs by size. The amount of data relayed or allowed ...
G. Maxwell's user avatar
  • 7,727
2 votes

Bitcoin Private Key question

Would the primary/main owner of the Private Key be able to figure out what has happened to his/her money . Yes, the wallet would show a transaction that spent/moved the coins find the real name ...
Albert S's user avatar
  • 1,630
2 votes

How is it legal to award miners with coins made out of nothing?

Miners spend energy to create blocks/getting rewarded bitcoin, it's not out of thin air. As new miners try to create new blocks and get the block rewards, the energy needed to create a new block ...
Pedro's user avatar
  • 753

Only top scored, non community-wiki answers of a minimum length are eligible