Converting bitcoin to fiat without problems

[m2017]

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.

Right to the point.

Banks should be viewed as businesses interested only in making a profit from us, and not in controlling financial transactions and the origin of funds. Any bank is also under the yoke of the regulator at the end of the chain “central bank (under the influence of the regulator) -> any bank” and has neither the desire nor the ambition to completely monitor your wallet.

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.

And if it’s illegal, will take everything.

Therefore, need to be prepared for the regulator’s request for the origin of funds through the banking layer.

[Moreno233]

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

This depends on the country you come from and what is obtainable there. There are countries where Bitcoin is banned, in that case users have to device means of converting Bitcoin to fiat which they might not be willing to share in public due to crackdown by the authorities. Furthermore, there are countries where Bitcoin is not banned but there is no tax on Bitcoin. In these case, there will be several ways of converting to fiat including using CEX, agents, and even p2p transactions. Finally, for the countries where there is crypto taxes, it is up to the individual to report his earnings to the tax authorities to be able to calculate the taxes and pay accordingly. Even when p2p means of converting BTC to fiat is available, the user can still fill BTC as source of funds to be able calculate the appropriate taxes.

[Pandorak]

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.

I have never made a large withdrawal so it never occurred to me to make transactions gradually as you said. But now that i think about it your idea is not a bad idea. And one more thing regarding Binance P2P, make sure to choose a seller/buyer who already has a good reputation, my friend was once cheated there even for a small money.

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.

100%

[Abu-Naim]

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

To do this without any task from either government of your bank suspense since some of these banks also have bitcoin regulations, you need to sell your Bitcoin the same way you bought it which is through p2p.

P2P can be physical the same way you buy your BTC, and it can be through the use of centralized exchanges that offers p2p service.
If you don't have someone to trade with physically, you can download a centralized exchange like Bybit to be using them as your market just to buy and sell your coins with them; don't leave your coins in the exchange.

[Unity for Humanity]

Some people messaged my telegram account and they told me that they buy bitcoins and they are ready to pay any currency against bitcoins. I don't have any bitcoins right now so I can't tell you how to sell bitcoins and convert them to local currency but maybe I can convert my bitcoins to local currency when I have bitcoins through those who messaged me on telegram.

[Cryptomultiplier]

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

To do this without any task from either government of your bank suspense since some of these banks also have bitcoin regulations, you need to sell your Bitcoin the same way you bought it which is through p2p.

P2P can be physical the same way you buy your BTC, and it can be through the use of centralized exchanges that offers p2p service.
If you don't have someone to trade with physically, you can download a centralized exchange like Bybit to be using them as your market just to buy and sell your coins with them; don't leave your coins in the exchange.

Since the use of P2P trading has been made aware to this question asked by OP, there should be the need for him to know that withdrawal of the funds could be done in bits for regions were it becomes flagged and a suspicious act, also, it could be possible to buy BTC ETF and do the needful from there having waited a while before diversifying or withdrawal of funds to ones bank account.

Using a good wallet during the period of trying to convert Bitcoin to fiat is necessary inorder not to lose funds that wasn't planned and a good hardware wallet for large red funds sounds appropriate enough to ensure that funds don't get lost during and after withdrawal.

[Silberman]

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

We get questions like that from time to time on the forum, but there is no way to give you an accurate answer as your specific circumstances are unknown to us, we do not know if bitcoin is legal to own where you live, how much bitcoin we are talking about, if you want to sell on installments or sell all your coins at once, and without that information we cannot give you a good answer, so you should try to find people where you live which went through a similar experience and see what they did.

[yazher]

I don't think it's a good idea for you to sell your bitcoins at once when you have a huge amount of it and the best thing you can do about it is to diversify it whenever you want to convert them to fiat by using multiple exchanges and cash them out in each one of them. Local exchanges already have rules and regulations and just make sure not to violate them because they will surely hold your account and prevent you from withdrawing your money if they find something illegal with your account. the best thing to convert it is using P2P in some known exchanges which most people do nowadays.

[adpinbr]

First of all it, depending on the amount you converted when you mean conversion, we don’t know the particular amount it may be something that the bank may not even look into unless the amount is stated, and secondly, most of the exchange that you can convert bitcoin to cash is always Centralized exchange that require you to do some verification and uploading on documents, which is the kyc and with this you may not have because the bank have already align with the order things you needed to do so you don’t have a problem

[Catenaccio]

I don't think it's a good idea for you to sell your bitcoins at once when you have a huge amount of it and the best thing you can do about it is to diversify it whenever you want to convert them to fiat by using multiple exchanges and cash them out in each one of them.

If these centralized exchanges are all KYC mandatory, it's not big different if you cash out from one centralized exchange or from multiple centralized exchanges. They all know who you are by your KYC documents submitted for verification.

the best thing to convert it is using P2P in some known exchanges which most people do nowadays.

The most common P2P exchanges are like a most favorite targets for banks and governments to put these platforms under their radars.

P2P can be traded through a P2P platforms that increase risk for your privacy.

P2P can be traded in person, it's good for privacy because you will complete your trade in cash, in person but it has another risk. You can be robbed, physical attack or you can receive faked cash.

[glendall]

I think if the funds entering the bank are within normal limits, the bank will not ask where your funds come from, especially if you make frequent transactions.
P2p transactions also mean they have a special account and often use a firm name or CV (in my experience, they don't do  using their real name when sending money to my bank) so why be afraid of questions from the bank?
I think people will not be able to avoid the tax problem. If they are found to have excess assets, a tax letter will definitely come to our house and we will be required to pay taxes

[jrrsparkles]

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

Converting a lot of bitcoin in a lot of transactions may not trigger the security measures of banking sector. Still, it all depends on your bank account and how much balance you maintain usually, and if you receive 100x of the amount will definitely flag your account. You will be reviewed if it's due to glitch or actual funds were transferred in that case if you did from centralized exchange there won't be any problem. Still, if it's from p2p then you might be asked for source of these funds, so don't convert crypto to fiat in all of a sudden unless you have a bank account that can maintain the cash flow as a normal thing.

[GiftedMAN]

You can easily convert your Bitcoin to fiat using your calculator and after then the best way is to sell your coins on an exchange that is available in your country. There are different exchanges like coinbase, Binance, kucoin that offers these services. Don't get it all wrong these exchanges do not directly buy your Bitcoin or USDT they will match you with a buyer in the exchange through the P2P area there you will see merchants and their prices.  Although the amount of taxes depends on your country of origin.

I agree with your explanation, but the P2P transactions done on exchange doesn't incur tax deduction from the receiver of the fiat, because from my experience, the fiat it's mostly transferred from the bank account of the person you've been paired with by the exchange, so it's basically like a normal cash entering into your bank account, except from the OP's country they deduct tax from any money entering into his account, which I strongly doubt of that kinf of situation.

You are right but I have got some experience when doing a p2p transactions the said amount the buyer was supposed to pay me was a bit different from what I received this experience happened on kucoin, sometimes the exchange charges you indirectly I may not be 100% sure about this but I know that apart from the fact that people don't include the (KOBO) payments in transaction for people in my country Nigeria, sometimes we don't receive the amount that is equivalent to the value of the coins we are selling, does it means the exchange is not aware of this or people see it as tax because personally I habe not made the complain since sometimes the amout difference is usually not up to $1. I think the merchants are taxed by the exchanges that's why they mostly don't pay the exact amount when p2p trade is initiated.

[Jawhead999]

Anything has a risk.

If you sell your coins in centralized exchange, you might have a problem about data breach, wrongly accused and any other centralization problem.

If you sell your coins in decentralized exchange or no KYC P2P, you might have a problem with banks and government because they view Bitcoin as non fungible coins.

If you sell your coins via direct P2P, you have a chance to get $5 wrench attack or get scammed by receiving fake cash.

[Synchronice]

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

The best way is to have a friend, buddy who wants Bitcoins and will have a deal with you, i.e. will buy these Bitcoins from you. This way, no one will question where does the money come from unless it's a lot of money.
If you are from the USA, I wouldn't risk it because recently Roger Ver was arrested for not paying taxes and I think that he would put more effort into it than you (nothing personal). If you are from a developing country where laws are strictly protected, it might turn into a big headache if you don't pay taxes.

[Faisal2202]

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?

I do p2p trading whenever I need fiat I send crypto like BTC or USdt and receive fiat in my third-party finance app, like Paypal, Payoneer, Easypaisa, JazzCash, etc. And when I receive funds on these financial applications, I then withdraw funds from these apps to my bank account and I only send funds from this app to banks whenever I have to withdraw them and I am already in the ATM. I send funds from here, and they are reflected in my bank account I am already in the ATM. So I withdraw them. I this phase I don't have to give answers to my bank managers. I mean come on, for a little money like 100$ to 200$ who asks questions?

If you think you need to withdraw more money then use multiple accounts and multiple banks I don't think it's illegal as they allow us to do it so it's legal. Using multiple banks, means you have to withdraw little funds from it, then they won't ask you from where it's coming, I mean they did not ask me. I don't know where are you living, or what's the policy there. But the best way is to pay tax, if its legal and if any imposed if not then try not to do it.

[sunsilk]

Now that you have mentioned that you own it and you're asking for some help, someone might sneak out on you and try to convince to help you privately.

Be careful with those people because you will never know if they have genuine intentions.

Going back to cashing out your BTC into fiat. I think that has done it in the past knows that if there's a sudden big deposit on your bank account, that will trigger them to have some spot on you and will serve as a red flag without proving where it came from.

With that, whether you trade in cex, dex or p2p, don't withdraw it all at once. Do it in several batches.

[Gladitorcomeback]

Some people messaged my telegram account and they told me that they buy bitcoins and they are ready to pay any currency against bitcoins. I don't have any bitcoins right now so I can't tell you how to sell bitcoins and convert them to local currency but maybe I can convert my bitcoins to local currency when I have bitcoins through those who messaged me on telegram.

You wouldn't want to do that, my friend. Telegram is the most famous place for scammers, and you shouldn't believe anything you see, hear, or receive there, make sure that you are not interacting with unknown people who try to approach you with offers and stuff in your DM because they don't go around and help people or help them make money but they are looking for preys and vulnerable people whom they can scam and run away with their funds.

Whenever you need to convert your assets to fiat, make sure you use a trusted P2P platform where your assets will be escrowed until you receive the funds in your account, and then you can release the assets yourself so that you don't get scammed. Don't try to use online services offered by unknown people.

[zabzob]

OP might want to consider bisq. I'm surprised no one has already mentioned bisq in this thread. It's a decentralized P2P trading platform that lets users trade bitcoin for fiat through banks and various other methods. You can receive bank transfers not from known crypto exchanges, so your bank won't know it's bitcoin-related. As long as you do amounts under 10k your bank probably won't ask questions, unless you're living in a totalitarian country.

[coolcoinz]

I have to be honest here that I was really afraid they might treat me like a money launderer, so I did extensive research, looking into banks that don't ban clients for transferring money from and to bitcoin exchanges. For that I've contacted a guy that I knew who was a localbitcoins trader for a few years and asked him which banks gave him problems and which did not and I made an account with the bank he told me about.

When it comes to taxes, there was completely no problems since bitcoin is considered a legal investment in the EU, so as long as the bank accepts the money and you pay tax, the government will not interfere.

That said, I no longer declare my bitcoin and prefer to exchange it for cash p2p.