Why localbitcoins dont need KYC ?

[newIndia]

"Barter transaction rules apply where bitcoins are used to purchase goods or services," Canada Revenue Agency spokesman Philippe Brideau said in an email.

Barter is the exchange of one good for another good without the use of cash, such as when a farmer who grows vegetables trades with another who raises chickens. Many Canadians don't realize such exchanges are taxable, but they are.

Thats why you should have both, grow vegetables and raise chickens. Clearly advantage over just having farm or chickens.

About the localbitcoins, shouldnt by this logic bitcointalk have KYC licence as well when in market section there are trade offers by members and matched by buyers. Quite similar to localbitcoins...

both the marketplace section and local bitcoins are nothing more then a venue that people can meet at that have similar goals (trade bitcoin). It would be no different then if a certain park or restaurant was a common place that people met at to trade .

After reading all these, I feel Bitcoin trading is very dangerous and one should stay away from this.

First, u may be scammed and if u are, there is none to complain.

Second, even if u r not scammed, govt. may catch u because u dont know AML/KYC laws !

Third, even if u r not scammed and follow all govt. rules, by that time market may fall and u ultimately lose !!

Fourth, even if u r not scammed, follow all govt. rules and still make profit, the tax men will catch u to take away most of your profit ...because they consider u have made a sudden fortune like lottery !!!

[theblacksquid]

"Barter transaction rules apply where bitcoins are used to purchase goods or services," Canada Revenue Agency spokesman Philippe Brideau said in an email.

Barter is the exchange of one good for another good without the use of cash, such as when a farmer who grows vegetables trades with another who raises chickens. Many Canadians don't realize such exchanges are taxable, but they are.

Thats why you should have both, grow vegetables and raise chickens. Clearly advantage over just having farm or chickens.

About the localbitcoins, shouldnt by this logic bitcointalk have KYC licence as well when in market section there are trade offers by members and matched by buyers. Quite similar to localbitcoins...

both the marketplace section and local bitcoins are nothing more then a venue that people can meet at that have similar goals (trade bitcoin). It would be no different then if a certain park or restaurant was a common place that people met at to trade .

After reading all these, I feel Bitcoin trading is very dangerous and one should stay away from this.

First, u may be scammed and if u are, there is none to complain.

Second, even if u r not scammed, govt. may catch u because u dont know AML/KYC laws !

Third, even if u r not scammed and follow all govt. rules, by that time market may fall and u ultimately lose !!

Fourth, even if u r not scammed, follow all govt. rules and still make profit, the tax men will catch u to take away most of your profit ...because they consider u have made a sudden fortune like lottery !!!

Why would you let the govt or its proxies find out that you made such a large profit? The best way for them to know is to convert it to fiat and deposit it into a bank. Wouldt you want to keep it as BTC instead?

[theblacksquid]

I'm a bit worried that the government will stick it's head in localbitcoins business.

It would really be a shame for something to happen to such a great site/service.

I hope they've checked everything out with a good lawyer or two.

Not really, they just need to decentralize their operations a "bit". So that they can't be shut down when/if their host gets subpoena'd

Open Bazaar is going to have that same cryptocurrency trading feature on it's desktop client, btw...

[InwardContour]

"Barter transaction rules apply where bitcoins are used to purchase goods or services," Canada Revenue Agency spokesman Philippe Brideau said in an email.

Barter is the exchange of one good for another good without the use of cash, such as when a farmer who grows vegetables trades with another who raises chickens. Many Canadians don't realize such exchanges are taxable, but they are.

Thats why you should have both, grow vegetables and raise chickens. Clearly advantage over just having farm or chickens.

About the localbitcoins, shouldnt by this logic bitcointalk have KYC licence as well when in market section there are trade offers by members and matched by buyers. Quite similar to localbitcoins...

both the marketplace section and local bitcoins are nothing more then a venue that people can meet at that have similar goals (trade bitcoin). It would be no different then if a certain park or restaurant was a common place that people met at to trade .

After reading all these, I feel Bitcoin trading is very dangerous and one should stay away from this.
...

Second, even if u r not scammed, govt. may catch u because u dont know AML/KYC laws !
...

You only need to follow AML rules if you are dealing with cash or cash instruments (cashiers checks, money orders and similar). If you exchange bitcoin for gold or bicoin for some other item then you would not need to follow AML rules AFAIK

[LostDutchman]

"Barter transaction rules apply where bitcoins are used to purchase goods or services," Canada Revenue Agency spokesman Philippe Brideau said in an email.

Barter is the exchange of one good for another good without the use of cash, such as when a farmer who grows vegetables trades with another who raises chickens. Many Canadians don't realize such exchanges are taxable, but they are.

Thats why you should have both, grow vegetables and raise chickens. Clearly advantage over just having farm or chickens.

About the localbitcoins, shouldnt by this logic bitcointalk have KYC licence as well when in market section there are trade offers by members and matched by buyers. Quite similar to localbitcoins...

both the marketplace section and local bitcoins are nothing more then a venue that people can meet at that have similar goals (trade bitcoin). It would be no different then if a certain park or restaurant was a common place that people met at to trade .

After reading all these, I feel Bitcoin trading is very dangerous and one should stay away from this.
...

Second, even if u r not scammed, govt. may catch u because u dont know AML/KYC laws !
...

You only need to follow AML rules if you are dealing with cash or cash instruments (cashiers checks, money orders and similar). If you exchange bitcoin for gold or bicoin for some other item then you would not need to follow AML rules AFAIK

Horseshit.

For private transactions there is no need to follow any rule but the one that says "Show me the money!"

[InwardContour]

"Barter transaction rules apply where bitcoins are used to purchase goods or services," Canada Revenue Agency spokesman Philippe Brideau said in an email.

Barter is the exchange of one good for another good without the use of cash, such as when a farmer who grows vegetables trades with another who raises chickens. Many Canadians don't realize such exchanges are taxable, but they are.

Thats why you should have both, grow vegetables and raise chickens. Clearly advantage over just having farm or chickens.

About the localbitcoins, shouldnt by this logic bitcointalk have KYC licence as well when in market section there are trade offers by members and matched by buyers. Quite similar to localbitcoins...

both the marketplace section and local bitcoins are nothing more then a venue that people can meet at that have similar goals (trade bitcoin). It would be no different then if a certain park or restaurant was a common place that people met at to trade .

After reading all these, I feel Bitcoin trading is very dangerous and one should stay away from this.
...

Second, even if u r not scammed, govt. may catch u because u dont know AML/KYC laws !
...

You only need to follow AML rules if you are dealing with cash or cash instruments (cashiers checks, money orders and similar). If you exchange bitcoin for gold or bicoin for some other item then you would not need to follow AML rules AFAIK

Horseshit.

For private transactions there is no need to follow any rule but the one that says "Show me the money!"

The federal government has the authority to regulate anything that affects interstate commerce as per the constitution. Assisting others with laundering money will affect interstate commerce.

[LostDutchman]

"Barter transaction rules apply where bitcoins are used to purchase goods or services," Canada Revenue Agency spokesman Philippe Brideau said in an email.

Barter is the exchange of one good for another good without the use of cash, such as when a farmer who grows vegetables trades with another who raises chickens. Many Canadians don't realize such exchanges are taxable, but they are.

Thats why you should have both, grow vegetables and raise chickens. Clearly advantage over just having farm or chickens.

About the localbitcoins, shouldnt by this logic bitcointalk have KYC licence as well when in market section there are trade offers by members and matched by buyers. Quite similar to localbitcoins...

both the marketplace section and local bitcoins are nothing more then a venue that people can meet at that have similar goals (trade bitcoin). It would be no different then if a certain park or restaurant was a common place that people met at to trade .

After reading all these, I feel Bitcoin trading is very dangerous and one should stay away from this.
...

Second, even if u r not scammed, govt. may catch u because u dont know AML/KYC laws !
...

You only need to follow AML rules if you are dealing with cash or cash instruments (cashiers checks, money orders and similar). If you exchange bitcoin for gold or bicoin for some other item then you would not need to follow AML rules AFAIK

Horseshit.

For private transactions there is no need to follow any rule but the one that says "Show me the money!"

The federal government has the authority to regulate anything that affects interstate commerce as per the constitution. Assisting others with laundering money will affect interstate commerce.

I take it that you do not understand the difference between commercial transactions and private transactions.

[bitbaby]

both the marketplace section and local bitcoins are nothing more then a venue that people can meet at that have similar goals (trade bitcoin). It would be no different then if a certain park or restaurant was a common place that people met at to trade .

After reading all these, I feel Bitcoin trading is very dangerous and one should stay away from this.

First, u may be scammed and if u are, there is none to complain.

Bitcoin trading and by trading I mean typically buying bitcoin from fiat or vice versa is based on trust, either you trust the person you're doing trade with directly or the escrow, and since the bitcoin transactions are not reversible it is a bit dangerous, since you're trusting an unknown person based on his/her trade history in the past.

[InwardContour]

Horseshit.

For private transactions there is no need to follow any rule but the one that says "Show me the money!"

The federal government has the authority to regulate anything that affects interstate commerce as per the constitution. Assisting others with laundering money will affect interstate commerce.

I take it that you do not understand the difference between commercial transactions and private transactions.

In terms of the government's ability to regulate there are no differences.

Private citizens need to follow federal law even when going about their normal lives.

[LostDutchman]

Horseshit.

For private transactions there is no need to follow any rule but the one that says "Show me the money!"

The federal government has the authority to regulate anything that affects interstate commerce as per the constitution. Assisting others with laundering money will affect interstate commerce.

I take it that you do not understand the difference between commercial transactions and private transactions.

In terms of the government's ability to regulate there are no differences.

Private citizens need to follow federal law even when going about their normal lives.

Are you a government plant?

I need to do AML/KYC on a private deal like I need a hole in the head.

Oh!; You bought my '63 Ramber?

Need all you personal information!

Yeah, right.

[InwardContour]

Horseshit.

For private transactions there is no need to follow any rule but the one that says "Show me the money!"

The federal government has the authority to regulate anything that affects interstate commerce as per the constitution. Assisting others with laundering money will affect interstate commerce.

I take it that you do not understand the difference between commercial transactions and private transactions.

In terms of the government's ability to regulate there are no differences.

Private citizens need to follow federal law even when going about their normal lives.

Are you a government plant?

I need to do AML/KYC on a private deal like I need a hole in the head.

Oh!; You bought my '63 Ramber?

Need all you personal information!

Yeah, right.

If I would buy your car from you in a private transaction you would need to know who to sign the title over to. If you were not to sign the title to my name then I would be at risk that you later report the car stolen.

[LostDutchman]

Horseshit.

For private transactions there is no need to follow any rule but the one that says "Show me the money!"

The federal government has the authority to regulate anything that affects interstate commerce as per the constitution. Assisting others with laundering money will affect interstate commerce.

I take it that you do not understand the difference between commercial transactions and private transactions.

In terms of the government's ability to regulate there are no differences.

Private citizens need to follow federal law even when going about their normal lives.

Are you a government plant?

I need to do AML/KYC on a private deal like I need a hole in the head.

Oh!; You bought my '63 Ramber?

Need all you personal information!

Yeah, right.

If I would buy your car from you in a private transaction you would need to know who to sign the title over to. If you were not to sign the title to my name then I would be at risk that you later report the car stolen.

Tue but I am not required to see your identification, do not require your Social Security Number, do not need to know about your bank accoun(As you would be paying cash), nor do I need your blood type or urine and fecal samples.

[InwardContour]

Horseshit.

For private transactions there is no need to follow any rule but the one that says "Show me the money!"

The federal government has the authority to regulate anything that affects interstate commerce as per the constitution. Assisting others with laundering money will affect interstate commerce.

I take it that you do not understand the difference between commercial transactions and private transactions.

In terms of the government's ability to regulate there are no differences.

Private citizens need to follow federal law even when going about their normal lives.

Are you a government plant?

I need to do AML/KYC on a private deal like I need a hole in the head.

Oh!; You bought my '63 Ramber?

Need all you personal information!

Yeah, right.

If I would buy your car from you in a private transaction you would need to know who to sign the title over to. If you were not to sign the title to my name then I would be at risk that you later report the car stolen.

Tue but I am not required to see your identification, do not require your Social Security Number, do not need to know about your bank accoun(As you would be paying cash), nor do I need your blood type or urine and fecal samples.

All that you would really need to do to comply with AML regulations would be to check identification (and potentially ask for a Social Security Number - I don't think this needs to be actually verified). When dealing in large amounts of cash it would be advisable to get identification information regardless in the event that the cash received were to turn out to be counterfeit or somehow illegally obtained. 

[haploid23]

Why localbitcoins dont need KYC ?

Very simple. Because LBC does not touch fiat. You cannot not deposit fiat in, and they do not pay fiat out.

[ABitNut]

Why localbitcoins dont need KYC ?

Very simple. Because LBC does not touch fiat. You cannot not deposit fiat in, and they do not pay fiat out.

^^ this.

As long as they do not touch / hold any official currency for their clients KYC does not apply. They don't need a money license either.

In the USA Bitcoin is currently considered a commodity I think. It is not officially a currency.

[CoinHoarder]

Buyers don't need to report anything, but the sellers should, especially if they're selling large amounts.

Local Bitcoins works inside a loophole in that they don't actually handle any of the money in the trades. All money is transacted inbetween the buyer and seller and their personal bank accounts, local bitcoins just takes a fee for matching the two together.

I imagine there will be some litigation versus local bitcoin sellers that don't follow kyc rules. They will make an example out of the biggest ones.

[ShakyhandsBTCer]

Why localbitcoins dont need KYC ?

Very simple. Because LBC does not touch fiat. You cannot not deposit fiat in, and they do not pay fiat out.

^^ this.

As long as they do not touch / hold any official currency for their clients KYC does not apply. They don't need a money license either.

In the USA Bitcoin is currently considered a commodity I think. It is not officially a currency.

For tax purposes bitcoin is considered an asset, but for AML purposes you would consider it a currency

[newIndia]

Why localbitcoins dont need KYC ?

Very simple. Because LBC does not touch fiat. You cannot not deposit fiat in, and they do not pay fiat out.

^^ this.

As long as they do not touch / hold any official currency for their clients KYC does not apply. They don't need a money license either.

In the USA Bitcoin is currently considered a commodity I think. It is not officially a currency.

For tax purposes bitcoin is considered an asset, but for AML purposes you would consider it a currency

I dont think at any democratic regime it is possible to consider something to be anything by the authority at their will. When they want, it is asset. When they want, it is currency. WTF ?

[InwardContour]

Why localbitcoins dont need KYC ?

Very simple. Because LBC does not touch fiat. You cannot not deposit fiat in, and they do not pay fiat out.

^^ this.

As long as they do not touch / hold any official currency for their clients KYC does not apply. They don't need a money license either.

In the USA Bitcoin is currently considered a commodity I think. It is not officially a currency.

For tax purposes bitcoin is considered an asset, but for AML purposes you would consider it a currency

There are a number of regulators and an even larger number of regulations.

Various regulators may use the same "word" to describe something but would define that word in different ways.

I dont think at any democratic regime it is possible to consider something to be anything by the authority at their will. When they want, it is asset. When they want, it is currency. WTF ?