Bitcoin Forum

I was talking to a friend of mine the other day when his son had began taking interest in bitcoin trading.But as far as I know,trading is not allowed for minors in california.But since I'm not the best at laws I want to confirm it,does anybody know whether or not Trading bitcoins/Trading Altcoins is allowed for minors in California? And if it is allowed then what platforms are available for them to use?

1. Earn some bitcoin
2. Trade in altcoins
3. HODL
4. ????
5. Profit

Hmmm...why would this sort of thing not be allowed?  I would imagine that a minor couldn't have a brokerage account to trade things like stocks, but having a bitcoin wallet is different and these bitcoin exchanges don't ask for your age when you sign up for the most basic membership.  What kind of trading, btc--->altcoin or btc<--->fiat?  That might make a big difference.

If kiddo trades on someone else's account, I don't see where the problem would be.  Maybe there are some bitcoin lawyers around here?

I heard trading minors is something that is done on the darknet. 
 :D

Imagine some politician might get their knickers in a twist but would think its alright. Then again a few state laws baffle me.

Why don't he get involved in trade with his Dad's name, so that he might not get ending up with certain problems. In certain countries I think not much issues if some agreement is provided by guardian for future security of trading.

If your friends son or whoever is trading on exchanges which allows anonymous trading and don't bother asking for KYC information then there is no way of anyone knowing whether person behind that account is minor or not.

if you remain only the altcoin territory i see no problem in trading, there is basically no rules there it's the free west

poloniex(this require some id for minimukm amount, but you can put in fake info...), bittrex and other are good for that

But in there TOS for bittrex it states you must be 18 years or older to open an account

He currently has a Utma/Ugma account and exchanges such as kraken and bittrex require you to be over 18 years old and have taxes on them.

It's not allowed for minors, but you can make them trade on someone else account yes.

But he can't have his own account and do his own trading ^^

Then wouldn't the account owner have to pay the taxes of whatever the kiddo trades?

and how they can verify this, if there is no id required or any other form of verification?

there are many site that in their tos need that, like even steam with some game, but it's only formal, they need to add it because of the general law for minor protection, but the truth is that nobody care...

Yeah totally, that's why I say the kiddo can't directly trade.

He can do false trading with demo account though, that can be cool!

A minor doesn't have to inform anyone anyway so he should be able to trade coins so long as he don't do something illegal then there should be no problem about it.
i'm just not sure if exchange sites allow minors though.

platforms like secondstrade though doesn't care whether you're a minor all he needs is just a btc address with coins in it.

if I understand it correctly there are several platform in trading btc who doesn't mind whether you are minor or not, they just allowed anyone who have their wallet add and deposit the btc and withdraw it anonymously.

What kind of trading volume are we talking about here? I would think that taxes wouldn't even be a factor if we're talking about less than 50 - 100 dollars worth of Bitcoin.
Also, wouldn't you only have to pay taxes if you actually converted your profits back to fiat?

i think this will depend on the exchanger that he is using, you should read the rules on the said exchanger. some of them will restrict minors (should be +18) and some don't care about these stuff.

besides it can all be anonymous so nobody would know the age of the person trading in their website, and for exchanger that work with fiat when you connect a bank account it becomes clear anyways and the owner of the account can be subjected to Taxes.

You should read the term and services of the exchanges you are trading on. Many exchanges don't allow individuals who are above a specified age to open an account on a bitcoin exchange platform. Second, you would need to upload ID and verify this account. Third, if the bitcoins are misused or not in accordance to terms of service of usage, you could have your account closed and bitcoin seized. I wouldn't recommend it unless you are willing to take the risks associated with this but this is your choice.

Some has suggested to do anonymous trading. I believe doing trade in such a manner will not be successive, because if he won't reveal his identity he can't earn trust which will affect his trading.

How will he just send the money to the plateform?

Aren't poloniex or bittrex allowed for minors? Because there is no verification process, etc. I don't think anyone will care anyway if he's a minor.

You gotta provide some documents no? An ID?

no only your name and street up to 2k dollars, so you can just fill fake info and be good

Ah ok! Well means anyone can do this ^^

Eh if minors can buy stuff with real money where you live i don't see why they cant with bitcoin. your friends son's can just lie about his age and nothing would happen.

Well it's all about the lie. What if the plateform learn it? It could be a reason good enough to seize the account!

well you can not fake anything if you at the end connect your bank account for deposit or for withdrawal

There seems a need where minors are to be stopped, because exchanges don't really care whether someone's minor or of an understanding age to trade at these places...
Ever heard of kids becoming millionaires???

Bitcoin account in many a exchanges is not monitored by any Law.

As its online virtual money kind of stuff there is no control as such on bitcoin account

May be in few states there are regulations but the question is how one can track when few exchanges are offering wallets even without any personal verification stuff !

May be in future there will be some kind of mechanism to track and assign bitcoin to a particular individual just like our bank accounts ! If it happens then members will surely loose interest in holding bitcoin !

Exact. Fact is you'll need a credit card or a bank account to deposit. Not going to insert your bills inside your PC :p