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13

I spent a long time researching this very question a while ago before buying my first bitcoins thinking that Bitstamp is the cheapest way to buy bitcoins (fee wise). I ended up concluding that the cheapest way to deposit money in a Bitstamp account from the United States is with Ripple, which allows you to bypass the $15 wire transfer fee that it would cost ...


10

No, the fincen guidance you posted has it in plain english that you do not. A miner is simply a user. c. De-Centralized Virtual Currencies A final type of convertible virtual currency activity involves a de-centralized convertible virtual currency (1) that has no central repository and no single administrator, and (2) that persons may obtain by ...


9

Put up an ad on LocalBitcoins.com. You possibly might find a tourist arriving with bitcoins who is looking for Argentine pesos. Or perhaps you'll find a local Bitcoin miner who is simply looking to cash out some bitcoins for your pesos. Are there any goods that you could pay for with your pesos and then have the goods shipped to a buyer who pays using ...


7

Yes, you could reimburse your friend with Bitcoin provided that you can find someone who is willing to sell you bitcoins in exchange for your local currency. However, when the demand for such transactions is strongly one sided in a particular region, the exchange rates may not be particularly favourable. This question might be of interest for finding ...


5

Same as the ban on drugs: People would continue to use them, they'll just do it in secret. The value will rise. The government will spend lots of your taxes to try to fight it and fail.


4

Is a Bitcoin a security? The SEC hasn't said that it believes it is and not communicated with or taken action, formal or informal, asserting that a miner is issuing securities or that exchanges are engaging as brokers of a security, which is a regulated activity. Is a Bitcoin an asset or commodity? Does your grocery store need SEC approval to sell ...


4

Your guess is as good as anybody else's. FinCEN's guidelines read: The term "money transmission services" means "the acceptance of currency, funds, or other value that substitutes for currency from one person and the transmission of currency, funds, or other value that substitutes for currency to another location or person by any means." That's as ...


4

In the US, these are called "Know your Customer", and "Anti Money Laundering" (KYC/AML) laws and is enforced by FINCEN (financial crimes enforcement network) in the US for any businesses that qualifies as a "Money Service Business" or "Money Transmitter". This guidance published on March 2013, http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001....


4

The IRS just issued a preliminary ruling on this and it will be treated as property. The Q&A portion is particularly useful. SECTION 4. FREQUENTLY ASKED QUESTIONS Q-1: How is virtual currency treated for federal tax purposes? A-1: For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property ...


4

HR 3708, which was introduced in the House of Representatives in September 2017, would do exactly that, with a threshold of $600 (to be adjusted for inflation). It has five cosponsors. It was referred to the Committee on Ways and Means, and there is no record of further action, so apparently the Committee decided not to move forward with it.


3

They tax the exact same things as if you'd done those things in Thai Baht, or Nigerian Dollars, or British Pounds. If you view ads, that's income. If you buy gold, and it appreciates, that's capital gains. If you buy a mining contract, the income minus depreciation is capital gains.


3

There is not. You will not find a definitive list of allowable documents, endorsed by a government, regulatory body, trade group etc. You may find lists of generally accepted documents, however there is no guarantee that their acceptance is either uniform or universal. Documents typically considered acceptable for the purposes of establishing residency at ...


3

A virtual currency exchange does count as a money transmitter, although there is some discretion for FinCEN here. The relevant passages are the following: An exchanger is a person engaged as a business in the exchange of virtual currency for real currency, funds, or other virtual currency. and An administrator or exchanger that (1) accepts and ...


3

I think it works like stock profits or losses. But consult your accountant.


2

There were some reports on Silk Road at the time, and they wanted action against Silk Road.


2

Maybe - check with a lawyer You don't have to register if You use a website (MtGox or Coinlab) to buy coins You use coins to buy "stuff" (Namecheap, alpaca socks, etc) You might have to register if: You run a wallet hosting company The FINCen law requires people to register if they Are a mixing service Participate in the Bitcoin OTC market and issue ...


2

You can easily avoid the BCRA exchange controls legally by purchasing bitcoins in Argentina for pesos and then sending those bitcoins to your friend. Your friend can exchange them for dollars or any other currency for that matter in his country. As long as you are purchasing bitcoins for Argentine pesos, you are not violating the BCRA's exchange controls. ...


2

While treating income from buying and selling bitcoins as investment income (i.e. like stocks) would be nice, it's not what I would recommend. The advantage would be that capital gains taxes are cheaper than standard income. The downside is that if the IRS rules that bitcoins are a currency instead of an asset, then the taxes are higher and if that's how ...


2

The IRS has not ruled on this yet. So I plan to treat Bitcoins as an asset for now. This means keeping track of your cost basis (purchase price + fees) and deducting this from your net sell (sell price - fees) to determine the capital gain or loss. Since you have no control over the specific coins you sell, you should probably use the FIFO (first-in first-...


2

If you're willing to buy BTC on Coinbase to xfer to BTC-e, when you want to cash out wouldn't you just trade over to BTC on BTC-e to xfer to Coinbase to sell for USD then withdrawal?


2

Certainly all banks and credit unions do not accept bitcoin, and I'm not aware of any that do. Banks and credit unions can be thought of as nodes in their own network that is not actually so dissimilar to Bitcoin. The function of this network is to create, store, and transfer money. Most fiat currency is not created by the central bank, but is lent into ...


2

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, you need to pay taxes on the difference between the value of the bitcoins and your tax basis in the bitcoins. The value of the bitcoins would be what you sold ...


2

If this is a true gift, that is, not part of any larger transaction and given out of the kindness of your heart, then you're probably going to have to consult a tax professional because this will depend on the precise tax treaties between the United States and India. Generally, when you give a gift to another person in the United States, you do not have to ...


1

The U.S. government views Bitcoin as a commodity, kind of like gold. If you buy Bitcoin at one price in dollars, and sell it at a higher price in dollars, you will have a gain (in dollars), that you will have to pay tax on. If you buy some Bitcoin (using dollars), and then use the Bitcoin to buy a car, you have made a "two stage" purchase of a car. (If you ...


1

KYC and AML are required if the entity is moving money from A to B. Those entities are referred to as MSB (Money Services Business). However crypto exchanges are are not truly MSB's but they still do KYC and AML. See this insightful article: https://hackernoon.com/bitcoin-is-not-money-if-you-seek-compliance-you-are-asking-for-trouble-cbe9107e5298?source=...


1

You can buy a Target or Walmart gift card and trade it for Bitcoin in https://cardforcoin.com/


1

There is nothing illegal in the process of mining litecoins or bitcoins. As far as cryptocurrnecies concern, you should be worried about "money transmition" and "money laundering". If you do not hold other people's coins you are not breaking any laws.


1

Commodities exchange, yes. Stock exchange, no. Stocks are securities, so it wouldn't be appropriate to trade bitcoin on a stock exchange because they don't have any relation to the assets or liabilities of an underlying company. Bitcoins are valuable (or not) only intrinsically. This is closer to a commodities exchange, which is what CEX.io does and ...


1

From a gox employee: What does the process involve? First, we ask you to provide one piece of government issued photographic identification, which is usually either: A driver's license, A passport, or; A military identification card (surprisingly, we have a large number of customers in the armed forces of various countries.) We then ask you provide some ...


1

I had the same trouble adding funds to btc-e. Best way to do it is using a wiretransfer. They give you the information you need for your bank to send funds to your account on btc-e. However the way I added funds is this creat an account with www.virwox.com . You can add USD from your credit card onto your account on the website. From then you have to trade ...


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