Transferring bitcoin and legal concerns

[ehwang]

Hi I am new to bitcoin and just done my first $1k transfer and was wondering if anybody had better knowledge regarding legal concerns around bitcoin transfer.

I know that when wire transferring money over $10k to an international bank account, my bank automatically reports it to authority. I was wondering if the bitcoin exchange does the same and or if there is any limit in the transfer amount + any tax or legal issues I should be aware of. I am planning on transferring money back and forth internationally to a different account under a different name.

Thanks in advance.

[mayax]

Hi I am new to bitcoin and just done my first $1k transfer and was wondering if anybody had better knowledge regarding legal concerns around bitcoin transfer.

I know that when wire transferring money over $10k to an international bank account, my bank automatically reports it to authority. I was wondering if the bitcoin exchange does the same and or if there is any limit in the transfer amount + any tax or legal issues I should be aware of. I am planning on transferring money back and forth internationally to a different account under a different name.

Thanks in advance.

Yes, you have to pay taxes because it's an income(the profit you make by trading). The financial licensed exchangers will report you for sure if someone asks and you have the obligation to declare all your incomes to your tax authority. Don't say"nobody will notice" because it's not like that. That's available for almost all the countries.

More than that, your bank may freeze and then close your account if you using it for Bitcoin trading. There so many cases. You can read about them on this forum. So, be careful what bank you are using.

[alani123]

Your bank won't ask any questions for transactions under $10k, but if this is something you do frequently you might want to look into declaring as the appropriate kind of income so you won't have to worry about it any more. If it's a one time thing don't over think about it.

[chennan]

Hi I am new to bitcoin and just done my first $1k transfer and was wondering if anybody had better knowledge regarding legal concerns around bitcoin transfer.

I know that when wire transferring money over $10k to an international bank account, my bank automatically reports it to authority. I was wondering if the bitcoin exchange does the same and or if there is any limit in the transfer amount + any tax or legal issues I should be aware of. I am planning on transferring money back and forth internationally to a different account under a different name.

Thanks in advance.

Yes, you have to pay taxes because it's an income(the profit you make by trading). The financial licensed exchangers will report you for sure if someone asks and you have the obligation to declare all your incomes to your tax authority. Don't say"nobody will notice" because it's not like that. That's available for almost all the countries.

More than that, your bank may freeze and then close your account if you using it for Bitcoin trading. There so many cases. You can read about them on this forum. So, be careful what bank you are using.

Not saying this to persuade you (or whoever is reading this) to avoid paying taxes or anything like that; but it is possible to trade P2P, rather than with a centralized exchange.  I've done a couple of trades on bitsquare.io which is a platform that allows people to trade with each other in a trustless manner which arbitrators there are the escrowing service.  Not to mention you can use other means such as localbitcoins.com. ... with that being said, it's not like you are prevented from cashing out to your normal bank because your bank will see you got paid by exchanging Bitcoin; rather it just looks like one of your buddies is paying you directly for something and depositing money to your checking account.

[pixie85]

You should pay taxes even if you're transferring less than $10k. This number shouldn't concern you, because your tax authorities most likely won't contact you asking about that 10k transfer you made last month. They sometimes do, but usually don't. It's rather an anti laundering and anti terrorist measure.

[KeyGenKing]

Good point , but a lot of country's has there own tax rules and laws? So i think you have to check it with your own goverment!

[ehwang]

Hi I am new to bitcoin and just done my first $1k transfer and was wondering if anybody had better knowledge regarding legal concerns around bitcoin transfer.

I know that when wire transferring money over $10k to an international bank account, my bank automatically reports it to authority. I was wondering if the bitcoin exchange does the same and or if there is any limit in the transfer amount + any tax or legal issues I should be aware of. I am planning on transferring money back and forth internationally to a different account under a different name.

Thanks in advance.

Yes, you have to pay taxes because it's an income(the profit you make by trading). The financial licensed exchangers will report you for sure if someone asks and you have the obligation to declare all your incomes to your tax authority. Don't say"nobody will notice" because it's not like that. That's available for almost all the countries.

More than that, your bank may freeze and then close your account if you using it for Bitcoin trading. There so many cases. You can read about them on this forum. So, be careful what bank you are using.

thanks for your response. Would transferring bitcoin to a relative and taking profits through arbitrage opportunity considered as me making money or him making money? I am not trying to avoid taxes or anything. was just wondering if there's any regulation in the size of these transfers (I'm looking to do this possibly $50k a week and scale up to 100k-ish)  also was wondering if experienced bitcoin traders find the exhcanges such as coinbase (thru which ive done my first trade) trustworthy

[European Central Bank]

depends on your country, but the same advice applies to everywhere - open a bitcoin specific bank account. even if you're doing absolutely nothing wrong they might close you down anyway. you don't want that messing with your everyday life.

those volumes are big. even if they don't have a problem with bitcoin, they might assume you're using a personal account for business and shut you down because of that.

[digaran]

Don't listen to trolls, your money your choice, you can do whatever you'd like with it, first find a trusted seller in this forum or in any other platform already mentioned above, then after you received your Bitcoins you might want to clean them by sending to Bitmixer and then receive fresh coins to your desired addresses then you could deposit them on any exchange and sell them and cash out.
You might want to do $200M in 24 hours because others are doing this with the rest of the daily volume.

[Dite1989]

What if OP splitted the big amount into more smaller amounts? Does that "report" thing have a well-defined threshold?

I'm sure, many Bitcoin users don't even know about the related taxes. It'd be too awkward if an exchange reported you for small transfers.

[leminerale]

Lately, some people in some countries use bitcoin as a conventional exchange or a substitute for credit cards to make transactions. But keep in mind is so far no official status of the government about bitcoin. Whether it is legal and can be a digital currency in the future or still as it is today. If there is no certainty from the government it will be very dangerous because we will not know what will happen to bitcoin in the future.
Thanks

[Amph]

what i know is that any amount above $1k is immediately reported to avoid money laundering, never heard of this 10k threshold

i think capital gain is taxable everywhere in the same way, i doubt you can go away without paying it, taxes are mandatory no amtter from where you come

if that 1k transfered is still in bitcoin and not in fiat, you can ignore taxes in some country, but this is the only exception

[Dude.Lebowski]

Hi I am new to bitcoin and just done my first $1k transfer and was wondering if anybody had better knowledge regarding legal concerns around bitcoin transfer.

I know that when wire transferring money over $10k to an international bank account, my bank automatically reports it to authority. I was wondering if the bitcoin exchange does the same and or if there is any limit in the transfer amount + any tax or legal issues I should be aware of. I am planning on transferring money back and forth internationally to a different account under a different name.

Thanks in advance.

I'm looking forward to the day govts make math illegal.

[zeze18]

Lately, some people in some countries use bitcoin as a conventional exchange or a substitute for credit cards to make transactions. But keep in mind is so far no official status of the government about bitcoin. Whether it is legal and can be a digital currency in the future or still as it is today. If there is no certainty from the government it will be very dangerous because we will not know what will happen to bitcoin in the future.
Thanks

Until now, there seems to be no government from any country that dares to declare legality of bitcoin, although they are aware that bitcoin is a great asset and beneficial to wider community. So sometimes there is anxiety about bitcoin for the future will be a digital currency and have a definite legality or vice versa.

[audaciousbeing]

Hi I am new to bitcoin and just done my first $1k transfer and was wondering if anybody had better knowledge regarding legal concerns around bitcoin transfer.

I know that when wire transferring money over $10k to an international bank account, my bank automatically reports it to authority. I was wondering if the bitcoin exchange does the same and or if there is any limit in the transfer amount + any tax or legal issues I should be aware of. I am planning on transferring money back and forth internationally to a different account under a different name.

Thanks in advance.

Its true on the benchmark on the maximum amount that needs to be transferred without disclosing to authorities and this is the common for most countries. But the issue is there is a way around it if you can disclose the source of such money but to avoid trouble why would I as an individual transfer such amount when I am not ready to answer or go through the bureaucracy of government agents who might not even know anything about bitcoin.

[darkangel11]

what i know is that any mamount above $1k is immediately reported to avoid money laundering, never ehard of this 10k threshold

i think capital gain is taxable everywhere in the same way, i doubt you can go away without paying it, taxes are mandatory no amtter from where you come

if that 1k transfered is still in bitcoin and not in fiat, you can ignore txes in soem country, but this is the only exception

If you have multiple $1k transfers you might be observed by the bank itself, but in the EU, usually only transfers above €15k are reported. It all depends on a bank, some report €10k transactions and some only €15k, but you can expect everything over €15k to be thoroughly checked.
If you think dividing a transaction into some smaller ones will help, you're wrong. The system will automatically flag you if you're receiving multiple smaller payments from the same source, and you can also get manually flagged by an employee.

And something about the US banking system:
When a transaction involving more than $10,000 in cash is processed, most banks have a system that automatically creates a CTR electronically. Tax and other information about the customer is usually pre-filled by the bank software. CTRs since 1996 include an optional checkbox at the top if the bank employee believes the transaction to be suspicious or fraudulent, commonly called a SAR, or Suspicious Activity Referral.

[alexrose2699]

To send digital currency, click the Send/Request link on the left sidebar of any page. You'll be brought to a page that lets you send digital currency to any email or wallet address.

[DOGE12321]

Well, it depends on your bank. Usually, they wouldn't mind for transactions less that $10000, but if you transfer $1000 as a regular practice, most banks will understand this as suspicious activity and may freeze your account. Legally, this type of activity is liable to tax as Bitcoin trading is considered as an income. Thus, one should be, in truth, subject to income tax. I would suggest you declare these transactions as income. Play it safe.

[alexrose2699]

In a new statement, Taiwan's Financial Supervisory Commission (FSC) – its top banking, insurance and securities regulator – has indicated its stance on bitcoin remains neutral despite recent speculation it was moving toward more restrictive policies.

Earlier this month, Taiwanese news service Central News Agency reported that the FSC had issued new statements on bitcoin and digital currencies, deeming them "illegal". The statements were attributed to FSC chief Tseng Ming-chung who, while not quoted directly, reportedly said during a legislative hearing that digital currencies were unlawful.

CNA further reported that Tseng "pledged that the FSC would work with the country's central bank and police to crack down any illegal act", sparking speculation that financial regulators were looking to take action against those using digital currency.

[zulkarnaen]

Well, it depends on your bank. Usually, they wouldn't mind for transactions less that $10000, but if you transfer $1000 as a regular practice, most banks will understand this as suspicious activity and may freeze your account. Legally, this type of activity is liable to tax as Bitcoin trading is considered as an income. Thus, one should be, in truth, subject to income tax. I would suggest you declare these transactions as income. Play it safe.

Maybe it's better than having to experience account freezing and getting into trouble in the financial process,
paying taxes from income we get is certainly an obligation to every citizen