I think you have misunderstood me here LoyceV. Let's say you spend $500 a month buying groceries using cash. So usually, you withdraw $500 a month from ATMs, and with that you buy groceries for the month.
Instead of buying them with your paycheck money, you go withdraw money from the non-KYC ATM and with that cash you buy the groceries. Then, with the money from your paycheck, the money you get paid from your job and is in your account, you make a transfer to Coinbase and buy Bitcoin.
You might say, well, someone at the bank might notice that you've underspent this month, which is what you've sent to Coinbase. Not necessarily, if you spend cash mainly for everything, buy clothes, put gas, etc. That you spend $500 less that month is irrelevant. That's why you can do it in small amounts and little by little. You can do $500 one month, $200 the next month, then wait for another month, etc.
That's my point: if you want to "launder" $100k, it's going to draw attention. But if you do $500 every other month, it's going to take a very long time.
That's why I suggested to just keep it legit: "I bought a Bitcoin for $100, I sold it for $100,000 after 10 years". If you have the blockchain to back it up, nobody is going to care who you bought the Bitcoin from 10 years earlier.
That way you have spent Bitcoin of which you cannot justify the origin to have the same amount of Bitcoin (maybe a little less because of the fees) with an origin that you will be able to justify in the future.
I still think it's way worse: You're turning a Bitcoin that you bought for $100 years ago into many small parts that you bought for $500 each. Unless you're trying to avoid capital gains tax, or you didn't obtain the Bitcoin legally in the first place, I'd say that's a dumb thing to do.
This is not just a theoretical problem
My bank questions me once in a while too. They want to know what I spend my money on (I don't think "
hookers and cocaine" is the answer they're looking for) and how much savings I have in other bank accounts too. They really word hard to get their industry replaced, Bitcoin never asks me those questions!
if it is true that you live in Switzerland
Nope, that's a nickname Lauda gave me.
But in general you are going to face a big problem if you suddenly appear before the tax authorities of your country with a large sum, be it $100K or $1M and you cannot justify the origin.
In this example it is something simple but let's think about the people who mined in their day and then made trades in exchanges that no longer exist, and also passed their bitcoins through mixers. The bitcoins he has today have a lawful origin, but he cannot justify it.
If you have your original private key that shows you mined the Bitcoins, you can simply explain what you did.
I've seen several topics where people try to buy old private keys, I assume they want to use it for tax purposes.
Yes, there are people who think that even if you can't prove the origin, since the authorities won't prove that it has an illicit origin (because it doesn't), you won't have any problem.
And sometimes it works out the other way, like
this drug dealer who had 36 Bitcoin seized years ago, and now gets 33 Bitcoin back because the price went up by the time authorities auctioned it
And here I say that it will depend a lot on the amount, and you can face tax evasion charges.
That's very easy to prevent: pay your taxes
As much as I dislike our very high taxes, paying it means I won't get charged years later.
