[2017-12-28] Dancing With the Devil: ‘Cashing Out’ Cryptos Into Fiat Not So Easy

[Iloveelvis]

Bitcoin and other cryptocurrency assets are precious and some of them have grown over 1300 percent in value this year. Although, with the price on exchanges being higher than ever before its now a bit more difficult for those who want to ‘cash out’ or make significantly large purchases without being watched by the prying eyes of tax collectors and governments.

Lately across social media and forums, you can find posts written by individuals who have ‘cashed out.’ Maybe they bought a luxury car like a Lambo, paid off their mortgage, or cleared their student loans with cryptocurrency gains. However some of conversations online concerning how to cash out detail how difficult it is without being watched, or being stopped by the third party payment processors.

Read More Here >>>  https://news.bitcoin.com/dancing-with-the-devil-cashing-out-cryptos-into-fiat-not-so-easy/

[Theb]

That is the problem around here for those who are earning money through Bitcoin why is it hard for us to pay our taxes? Isn't it unfair for other citizens who are earning from their jobs which they also pay their taxes? We are making this a big deal but it is our obligation and our burden to pay our taxes in order for us and our country to move forward. I think the title of the news is wrong because cashing out is easy but evading taxes is harder.

[Hell-raiser]

That is the problem around here for those who are earning money through Bitcoin why is it hard for us to pay our taxes? Isn't it unfair for other citizens who are earning from their jobs which they also pay their taxes? We are making this a big deal but it is our obligation and our burden to pay our taxes in order for us and our country to move forward. I think the title of the news is wrong because cashing out is easy but evading taxes is harder.

I for one don't think that the thread title is wrong or misleading. How long ago did you try to cash out yourself and how much really? Cashing out big amounts may be a real pain in the ass, and in most cases it doesn't have to do anything with taxes. In many territories and jurisdictions you may have your bank account blocked if the bank sees some funds moving in out of nowhere unless you can provide a plausible explanation where all this money comes from. And no, trading Bitcoin for fiat may not be the explanation you will be looking for then.

[cynical]

unfortunately we all still rely on fiat for our day to day dealings like bills, living expences so we need fiat and it is very handy to be able to liquidate some of our earnings to fiat.
the fees relating to coinbase and bitstamp are what they are and im not sure how authorities from various countries can track where a deposit comes from?

[guybrushthreepwood]

Bitcoin and other cryptocurrency assets are precious and some of them have grown over 1300 percent in value this year. Although, with the price on exchanges being higher than ever before its now a bit more difficult for those who want to ‘cash out’ or make significantly large purchases without being watched by the prying eyes of tax collectors and governments.

Lately across social media and forums, you can find posts written by individuals who have ‘cashed out.’ Maybe they bought a luxury car like a Lambo, paid off their mortgage, or cleared their student loans with cryptocurrency gains. However some of conversations online concerning how to cash out detail how difficult it is without being watched, or being stopped by the third party payment processors.

Read More Here >>>  https://news.bitcoin.com/dancing-with-the-devil-cashing-out-cryptos-into-fiat-not-so-easy/

It's not that difficult to be honest. There are obviously certain restrictions put in place by exchanges that you can only cash out X amount over a certain period of time to keep in line with anti-money laundering and know your customer laws etc. For instance, CoinBase has a 15k limit or so per week which would be annoying if you have hundreds of thousands to cash out or even millions, but if you're clever you could just use multiple exchanges to get around whatever restrictions they have in place. Besides, I think having a lot of money to cash out is still a pretty good problem to have, no?  . As for taxes, well, if you don't want to end up in prison or with a hefty fine I would pay what you owe because if you've got a large amount of cash you probably won't be able to spend it on much and there's going to be a lot of questions asked at some point down the line and good look explaining where you got the money from to pay for the Lambo or house etc.

[European Central Bank]

It's not that difficult to be honest.

it's completely dependent on what country you live in. if you're in america you're spoilt for options. if you're in the uk you have a lot lot more work ahead of you. if you're a crypto billionaire in mali then you really are up shit creek.

[Taki]

The problem of current days. I have good amount of money to cash out on YoBit, but I can't do it for days due to grabbing percent for the operation. Before I have paid 0%, sometimes 1% for that, but for around a week the percent is 6% and it is too much I think. When I asked why so people just replied because of nobody roll in money, but everybody just cash it out.

[guybrushthreepwood]

It's not that difficult to be honest.

it's completely dependent on what country you live in. if you're in america you're spoilt for options. if you're in the uk you have a lot lot more work ahead of you. if you're a crypto billionaire in mali then you really are up shit creek.

I suppose. But there's always Localbitcoins as well. You can either find someone on there to do a bank transfer or just meet people locally for cash. You could travel all over the world just laundering your coins for cash hehe.

[darkangel11]

That is the problem around here for those who are earning money through Bitcoin why is it hard for us to pay our taxes? Isn't it unfair for other citizens who are earning from their jobs which they also pay their taxes? We are making this a big deal but it is our obligation and our burden to pay our taxes in order for us and our country to move forward. I think the title of the news is wrong because cashing out is easy but evading taxes is harder.

I don't know how high are taxes in your country, but why would I feel an obligation to do something for mine if it has never done anything for me or my parents beside treating us like slaves? I'm not saying we should break the law, but I don't feel like I owe my government anything and as long as there are countries that aren't claiming taxes from cryptocurrencies I will keep using them to my advantage. Remember that you don't belong to a country you were born into, you were given a free will and an ability to choose.

[BigTeeths]

That's very unlucky on their sides because here in our country, I'm very thankful that we have  the best local exchange that is very reliable and cashing out was never a problem and no tax. Cash it in a bank, card, or money remittances is too easy.

[Harlot]

That is the problem around here for those who are earning money through Bitcoin why is it hard for us to pay our taxes? Isn't it unfair for other citizens who are earning from their jobs which they also pay their taxes? We are making this a big deal but it is our obligation and our burden to pay our taxes in order for us and our country to move forward. I think the title of the news is wrong because cashing out is easy but evading taxes is harder.

I for one don't think that the thread title is wrong or misleading. How long ago did you try to cash out yourself and how much really? Cashing out big amounts may be a real pain in the ass, and in most cases it doesn't have to do anything with taxes. In many territories and jurisdictions you may have your bank account blocked if the bank sees some funds moving in out of nowhere unless you can provide a plausible explanation where all this money comes from. And no, trading Bitcoin for fiat may not be the explanation you will be looking for then.

In our country we also have our limits in which if our transfers are greater than 10,000$ (Estimated value of 500,000 PHP) before that transaction proceed you should file a report stating what is the purpose of that money. And thinking like how the government would think 10,000$ is really a big amount to be transferred online and it should be reviewed and be cleared first before they approve such transfer. Things like funding terrorist or money laundering always comes to their mind as the national security of any nation is important.

[superjeyy]

Cashing out in big amounts would surely turn heads arounds and bring in some doubts of where it comes from. As responsible citizens, no matter what country it may be, we should be held responsible for our actions and face the consequences wholeheartedly. If we are planning to cash out huge amounts for the right purpose, then let it be taxed. I do understand why some people are hesitant in having their Bitcoin earnings taxed, it is because the government can be too much at times that they abuse you. I don't blame them for feeling that way but at the end of the day, we all have responsibilities that we are all committed to fulfill.

[veleten]

wish I had this sort of problems
as for Localbitcoins and two way ATMs-it is at least inconvenient to sell
thousands worth of bitcoins with the current daily limits,they do differ from country to country and even from atm to atm
but in any case,cashing out 10.000$ with a 1.000$ limit is pain in the neck,not even talking about larger sums here
and with localbitcoins its too easy to get scammed,so this is not the best option either
third party providers and exchanges is what is left and with the goverments trying to control the link in between cash,bitcoins and you
the faster bitcoin adoption rate is the better,so things can be sold or traded directly,without the need of a fiat intermidiary

[Hell-raiser]

That is the problem around here for those who are earning money through Bitcoin why is it hard for us to pay our taxes? Isn't it unfair for other citizens who are earning from their jobs which they also pay their taxes? We are making this a big deal but it is our obligation and our burden to pay our taxes in order for us and our country to move forward. I think the title of the news is wrong because cashing out is easy but evading taxes is harder.

I for one don't think that the thread title is wrong or misleading. How long ago did you try to cash out yourself and how much really? Cashing out big amounts may be a real pain in the ass, and in most cases it doesn't have to do anything with taxes. In many territories and jurisdictions you may have your bank account blocked if the bank sees some funds moving in out of nowhere unless you can provide a plausible explanation where all this money comes from. And no, trading Bitcoin for fiat may not be the explanation you will be looking for then.

In our country we also have our limits in which if our transfers are greater than 10,000$ (Estimated value of 500,000 PHP) before that transaction proceed you should file a report stating what is the purpose of that money. And thinking like how the government would think 10,000$ is really a big amount to be transferred online and it should be reviewed and be cleared first before they approve such transfer. Things like funding terrorist or money laundering always comes to their mind as the national security of any nation is important.

In the US, for example, all purchases involving ready cash over $10,000 per transaction should be reported to the IRS and FinCEN by both the seller and the buyer. In this way, you are guaranteed to have tensions and issues with the US tax service if you choose not to report your expenditures exceeding this amount. And the IRS is likely the most stringent tax service in the world when it comes to such reports in particular and taxes in general.

[jjacob]

That is the problem around here for those who are earning money through Bitcoin why is it hard for us to pay our taxes? Isn't it unfair for other citizens who are earning from their jobs which they also pay their taxes? We are making this a big deal but it is our obligation and our burden to pay our taxes in order for us and our country to move forward. I think the title of the news is wrong because cashing out is easy but evading taxes is harder.

It is not just about payment of taxes. It could be about harassment as well. Questions could be raised about who you got your bitcoins from and whether the payer was engaged in any illegal businesses. Such questions are not asked of people who get their salary credited into a bank account from a normal job.