Can a foreigner buy a house in USA with bitcoins?
I am aware of that the foreigners can buy a house from USA and there isn't any restrictions. But how about bitcoins?
I know if the seller accepts it there won't be a problem but how about the government? Are they ok with that?
Normally, FED controls every USD transaction all around the world and they check if the money is dirty or clean. Especially if you send the money to USA. Since they won't be able to control bitcoin transactions, how would they know if you are a drug dealer or a legal citizen in your country? Or do they even care?
The fed doesn't control every USD transaction. Not normally, not ever.
What about this:
https://en.wikipedia.org/wiki/Terrorist_Finance_Tracking_ProgramSometimes people say "the Fed" meaning the US Federal Government, but "the Fed" is only the Federal Reserve.
So xhomerx10 is correct in his original answer in this context.
If your question is that all financial transactions from outside the US is monitored and checked with other
international financial systems, then the answer is yes. In theory, if you have money in a bank account that is
associated with illegal activity and they have flagged it as such and then you attempt to transfer it overseas to
the US, it could be frozen and seized. If your funds are not flagged currently, but are in the future, the US will
then also freeze and seize within the US banking system.
If you have converted those "illegal" funds into bitcoin within your own country and then mixed those coins good
enough that the original links have been entirely disconnected, and then you transfer those bitcoins to a US property
owner for the purpose of purchasing their property, everything in theory should be fine as long as those coins future
use will be deemed as "clean" by regulated exchanges or other regulated wallets.
If the home seller learns later that their coins were dirty and unusable or becomes frozen in exchanges or etc, they
would be able to open a legal action against you and your new property due to fraud and other counts. If they win,
they will likely get their property back and you will be in a US jail and then ultimately deported back to the country
that has determined you participated with or in the original crime that allowed you to get the "illegal funds" and they
will charge and prosecute you there.
Ultimately, the US government will not care as long as you are not breaking any laws or participating in criminal activity.
The issue with bitcoins and physical property sales is whether those coins are bad or dirty and you transferred that
liability knowingly and whether the original property owner has remedies. If the coins are transferred for example, from
your coinbase account to the home sellers coinbase account, that would somewhat satisfy some of the issues since the
home seller could assume that coinbase checked those coins and determined they were clean before allowing them to be
transferred from your coinbase account.
Other issues to consider are the contract/agreement terms and the terms of sale for the property that needs to
incorporate bitcoin clauses and elaborations to protect all parties. It may be your only protection if a dispute arises.
