Converting bitcoin to fiat without problems

[Assface16678]

Well, the thing is that if the amount is too much then expect that your account will be locked or questioned, because they might question where did you ge the money so instantly and quickly, well its a common measure so that banks or any platform where you can place your money will know where did you get the money and if its legal or illegal, in my country there are this kind of scenario where in if suddenly you place a very huge amount of money in a bank account or any platform where you can put your money, then expect that they will questioned you and will ask for validation to know if the money came from legal means, because as we know money laundering or any kind of moneh manipulation is can be done in crypto so authorities are being more cautions and strict when it comes to sending and transacting huge amount of money, I still dont experience holding or converting from crypto currency in fiat currency that the amount will be too much.

[aylabadia05]

How did you do it so that the tax authorities and the bank manager would not question where the money came from?

I don't really know how this applies to all countries, but from my experience of changing Bitcoin and other crypto coins, the tax has been set on the exchange at a percentage.
Let's assume we change 1 BTC for $70k. $70k if exchanged into fiat currency is a large amount that will make the bank suspicious. This can be done in stages [3 to 4 times].
Taxes, we cannot avoid them because all exchanges are under the regulation of legally registered government-owned entities.

[Aanuoluwatofunmi]

The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?

The best means to achieve this successfully is in doing it through a decentralized p2p exchange, but making use of a centralized exchange is not ideal enough for us to be able to achieve maximum privacy or evade government regulations, you don't have to specify on the information on your transaction to be crypto transaction in other for you not to be announcing yourself its such you're doing,

The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

It is not difficult to achieve, if you want to make physical p2p transaction, then i will advise that you make use of an escrow service provider that us reliable, while the online one is the decentralized exchange i have to recommend.

[Fiatless]

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

It will mainly depend on the crypto laws of your country. Some countries have laws that mandate you to state the source of your income and also pay tax from it. Other countries may not ask where the funds come from but you need to pay tax for it. While other nations are tax-free when it comes to income from crypto. In my country, the government will be asked for the source of the money if it is above $10,000. So dividing the money into lesser funds while exchanging it will make you escape such scrutiny.

When it comes to tax, it will depend on the platform you use to exchange your Bitcoin. If you use a well-established centralized exchange, you may be subjected to tax because they will report your transactions to the government. But if you use a decentralized exchange or through physical P2P like when you bought it, you may avoid tax. But if you are legally mandated to pay tax, there is no need to avoid it. Taxes are an important source of revenue for the government, and without them, basic amenities might not be provided or maintained.

[Potato Chips]

I don't think there's a way to make sure of this as there is no from a to z guidelines available public.

At best, you could only try to mitigate the risks like diversifying the funds to different banks. This may be anecdotal but in my place, its typically the high volume traders getting flagged. You may wanna check on crypto friendly or neutral companies as well.

I also think banks could differ depending on someone's country so perhaps check in with your locals? in my place, I've seen some speculation with folks that banks which were embroidered with stuff like money laundering previously tend to be more strict with the checks. -- but im assuming this could apply in many places as well 🤔

IDK about taxes. depends on how competitive your tax agents are i guess.

[GideonGono]

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

When converting my Bitcoin into Fiat, I used to do it on our local crypto wallet which allows us to easily purchase and sell crypto into our local currency.
But now I am doing it on centralized exchange or trading, to be more accurate I am using binance to trade my crypto into cash everytime that I wanted to.
I never really experience any tax other than transaction fees in cryptocurrency.
If you are concern about being monitored or tag on ALMA, then don't send a huge amount in a single transaction try to do it separately with small amounts.

[Lidger]

You want to know about a very simple matter and I am telling you this matter in a simple way. You must be aware of P2P transactions, if you don't have a complete understanding of this transaction, you can watch one of these tutorial videos on YouTube. I hope you will have a complete idea about this by watching any video related to P2P transactions on YouTube. You can use Binance or Ku-Coin exchange to make such transactions. These two exchanges will definitely provide you with P2P transactions. First verify the account, then if you want to convert your BTC paper money, go to the funding option and add your bank account or mobile banking number to your exchange. After doing these things well, you can find a good buyer and sell your dollars. In this case, for your information, you will first receive your money and then release your dollars

[Rengga Jati]

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

It seems this will depend on each country's policies and regulations. So maybe what you have to understand first is, what are the crypto regulations in your country? And what about taxes?

I will explain this in my country, maybe this will be different from what is in your country.

1. First, I will explain about the regulation here

In my country, all crypto exchanges must be registered with our country's authorized institute, namely Bappebti. If not, then it is said to be illegal and will cause problems and cannot be accessed freely. And all these exchanges will be directly integrated with various government regulations, including taxes, crypto that must be listed, reports, and so on.

Approval from BAPPEBTI is necessary for engaging in cryptocurrency-related activities within Indonesia, ensuring legal compliance. Specific requirements apply to each activity type, such as crypto bourse, crypto futures clearing house, crypto-asset depository, and crypto-asset physical trader (exchange).

2. About tax in crypto

So, next is related to tax. So, all exchanges registered in Indonesia must simultaneously charge tax for all users for every transaction on the exchange, amounting to 0.11% VAT and 0.10% PPh. So, all automatic transactions will also be subject to tax by directly deducting them from the transaction. So, there is no further problem when carrying out crypto transactions from a regulated exchange because it is already taxed directly on the exchange.

Since May 2022, each crypto transaction in Indonesia incurs a 0.11 percent PPN on Bappebti-registered exchanges, along with a 0.10 percent PPh.

So what happens if you suddenly withdraw a very large and different amount from usual to the bank? Will it be a problem?

Usually, the bank will confirm the transaction, because it is suspected to be an unusual transaction and of course the bank will suspect the existence of this transaction. Because of this, the bank will immediately freeze the account and call the customer to come and confirm where the money came from. Then, after confirming and being able to prove that the money comes from crypto transactions carried out on local exchanges licensed by Bappebti which are automatically taxed, and the bank approves the reason, then it can be taken and won't cause any more problems. So, so far, as long as we follow the rule and regulation here, it won't be any big problem. Just follow the ways and rules.  

Source, read more here:
https://indonesiabusinesspost.com/insider/indonesia-mulls-tax-adjustment-for-crypto-transactions/
https://indonesiacrypto.network/blog/complete-guide-to-crypto-regulations-in-indonesia-all-you-need-to-know-in-2024
https://finance.detik.com/moneter/d-6120578/apakah-bank-curiga-kalau-nasabah-tiba-tiba-dapat-uang-dalam-jumlah-besar

[Sunderland]

But now I am doing it on centralized exchange or trading, to be more accurate I am using binance to trade my crypto into cash everytime that I wanted to.
I never really experience any tax other than transaction fees in cryptocurrency.

That could happen because the tax system in your country is not strict. However it is still possible that one day later you will be asked to provide a tax report based on the money that goes into your bank account.

If you are concern about being monitored or tag on ALMA, then don't send a huge amount in a single transaction try to do it separately with small amounts.

That is only a short-term solution to avoid taxes if you are still using your bank account to receive that money.

[salad daging]

How did you do it so that the tax authorities and the bank manager would not question where the money came from?

I don't really know how this applies to all countries, but from my experience of changing Bitcoin and other crypto coins, the tax has been set on the exchange at a percentage.
Let's assume we change 1 BTC for $70k. $70k if exchanged into fiat currency is a large amount that will make the bank suspicious. This can be done in stages [3 to 4 times].
Taxes, we cannot avoid them because all exchanges are under the regulation of legally registered government-owned entities.

I have never made a large withdrawal by exchanging 1 BTC to fiat but what I know is that Indodax sets a daily withdrawal if I'm not mistaken 250,000,000 IDR if you want to make a higher withdrawal then you can increase the limit again.

But I also don't know for all countries how the government enforces it, but for our country there will be no question because exchanging BTC to fiat is very common in the sense that many people do it without the need for banks to ask where this is from because the government has supervised and legalized it as a commodity asset.

[Stalker22]

~
How did you do it so that the tax authorities and the bank manager would not question where the money came from?

Bitcoin to fiat transactions are taxable income in many jurisdictions.  Not reporting that stuff can really backfire too, with fines and stuff from the taxman.  If this is really your concern, I suggest you avoid using banks in that case.  They gotta report suspicious activity and deposits to watch for money laundering and and bad things.  So if you want to stay under the radar with crypto, avoiding the banks could be smart.

[Asiska02]

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

That’s the work of p2p exchanges and you can do that without having to have a risk thought of not receiving your money after you’ve initiated the sell of your bitcoin in the p2p platform. I have more trust to use those exchanges to trade my bitcoin for fiat than using any of the other methods of conversion that is available. While selling your bitcoin you’re at less risk to lose your money because the person you’re selling to have to send the money to your account and you confirm before releasing the coins for them on the platform.

About bank managers asking for the source of your money, it all depends on how your bank account is on their platform if youve registered as a student, worker or business man and the limit set in your account. They will only be suspicious if you do more than what your account warrants you to do. Like me, I’ll have my ways to get them persuaded where the money came from, although I don’t think anything of such has happened to me or will happen in the future.

[Pandorak]

Hello,friends
The question is more for those who once converted a lot of bitcoins into fiat to their bank accounts
How did you do it so that the tax authorities and the bank manager would not question where the money came from?
The thing is that many years ago i bought my bitcoins from a person in cash and he transferred them to me in my presence
How can i make sure that this money is transferred to my bank card without any problems?

-Regards

Just move your bitcoins to a CEX that is regulated & legal in your country and convert them into fiat from there. CEXs that are affiliated with the government will never have problems with taxation, because every transaction you make is counted in tax, that's what happens in my country.

[AmoreJaz]

Just move your bitcoins to a CEX that is regulated & legal in your country and convert them into fiat from there. CEXs that are affiliated with the government will never have problems with taxation, because every transaction you make is counted in tax, that's what happens in my country.

Also, make your transactions staggered not one time big time transaction. If you can make it on a daily/weekly basis, much better. I have had the same thoughts before and what I did was I converted my btc to fiat at different time intervals, not on a daily basis though. Use exchange platform that is reputable, and if you will use your local exchange, better make sure you submitted legit docs. Don't give them reason to freeze your account for some carelessness.
Try also to check binance p2p, there are so many sellers/buyers who have high limits. But again, don't do it one time. Intermittent transaction is much better to avoid those prying eyes.

[woez]

Just move your bitcoins to a CEX that is regulated & legal in your country and convert them into fiat from there. CEXs that are affiliated with the government will never have problems with taxation, because every transaction you make is counted in tax, that's what happens in my country.

The right solution. Instead of having to use strategies a and b, we just have to be busy and spend money over and over again, where the final goal is how BTC can be converted into fiat and entered into our personal accounts without many questions from any party.

[michellee]

I sold my Bitcoin and transferred it to a bank account as needed. That is a normal solution for Bitcoin holders who want to get their fiat. But if the money is big, it looks like you need a third party who can help you transfer it.

If you use an exchange and provide the facility to send money to your bank account, you can use it. As long as the money you send to your bank account is not too large, the bank will not ask about the origin of the money. If they see the money from the exchange, they will probably ask for other documents supporting the transaction.

The bank will be suspicious if a transaction is too large. Therefore, you should send the money by dividing it over several transfers. However, the bank will not be too suspicious if the account has frequently carried out transactions with large amounts of money.

[Don Pedro Dinero]

Just move your bitcoins to a CEX that is regulated & legal in your country and convert them into fiat from there. CEXs that are affiliated with the government will never have problems with taxation, because every transaction you make is counted in tax, that's what happens in my country.

The right solution. Instead of having to use strategies a and b, we just have to be busy and spend money over and over again, where the final goal is how BTC can be converted into fiat and entered into our personal accounts without many questions from any party.

In another thread the OP talks about having more than $20,000 in bitcoin. If it's around that amount, he shouldn't have much of a problem, although it depends on where he is tax resident. Normally, if he can't prove the price at which he bought it, he would be charged 0 cost, and taxed on the total. But if it was more money or considerably more, he would have to be careful because he could be accused of tax evasion. It is best to consult a lawyer.

[aylabadia05]

<snip>

I have never made a large withdrawal by exchanging 1 BTC to fiat but what I know is that Indodax sets a daily withdrawal if I'm not mistaken 250,000,000 IDR if you want to make a higher withdrawal then you can increase the limit again.

The limit depends on the level and my withdrawal limit for the exchange is the same as the daily withdrawal limit so that large withdrawal amounts need to be done several times on different days.

But I also don't know for all countries how the government enforces it, but for our country there will be no question because exchanging BTC to fiat is very common in the sense that many people do it without the need for banks to ask where this is from because the government has supervised and legalized it as a commodity asset.

Correct. This is understood by all crypto activity actors. As I said before, we cannot avoid taxes and tax officials or bank officials no longer arouse feelings of suspicion when there are people whose transaction history comes from crypto exchanges.

[lixer]

Just move your bitcoins to a CEX that is regulated & legal in your country and convert them into fiat from there. CEXs that are affiliated with the government will never have problems with taxation, because every transaction you make is counted in tax, that's what happens in my country.

The right solution. Instead of having to use strategies a and b, we just have to be busy and spend money over and over again, where the final goal is how BTC can be converted into fiat and entered into our personal accounts without many questions from any party.

In another thread the OP talks about having more than $20,000 in bitcoin. If it's around that amount, he shouldn't have much of a problem, although it depends on where he is tax resident. Normally, if he can't prove the price at which he bought it, he would be charged 0 cost, and taxed on the total. But if it was more money or considerably more, he would have to be careful because he could be accused of tax evasion. It is best to consult a lawyer.

I made a researched on this before and if I'm not mistaken, we can only get taxed in our crypto hodlings if we are profiting. So, simply having or buying the BTC first is exempted to it. There is also a threshold/minimum amount, for us to get charged by a tax and I think it starts at $3k. I'm not only sure if the same rate applies in other countries.

If we can't prove the price where we bought our coins, then we are supposed get charged and it's not a zero sum but it can be higher than our recommended tax pay amount. This is why it's important to track everything and prepare them, just in case we are required by our law to pay a tax. Consulting a lawyer about this matter as you said, is much better as they have more experience and knowledge when it comes to this things.

[examplens]

For amounts exceeding ten thousand Dollars, I would expect any Bank to ask me to prove where the Money came from.  It is how Banks operate pretty much.

No bank as a bank is interested in where your money comes from. The question of the origin of the money does not come from the bank but from the government. It is the government that wants to have insight into your finances and (if everything is legal) to charge you as much tax as possible.