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Tabata11 (OP)
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February 26, 2015, 03:55:18 AM |
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Hi everyone,
I have been buying and selling bitcoins (~25BTC so far) on localbitcoins for two months now and want to get into some serious business to make some profit. I would like to know what steps I need to take to trade high volumes of bitcoins legally in the US. I have read some previous posts about this same topic but I would like to know where I can look for solid advice. I am mainly looking into selling bitcoins by cash deposits at banks.
Also, what is the best exchange to buy bitcoins at the lowest price/fee? I mainly use circle and coinbase but I want to know if there are other exchanges with lower fees and prices.
~Tabata11
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SurReality89
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February 26, 2015, 07:40:17 AM |
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I don't think it's illegal to buy or sell any volume of Bitcoin. Other than if you deal with ten thousand plus in cash in a transaction maybe there are regulations as with anything else at that volume.
How have you accepted payment for Bitcoin on local Bitcoin?
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thompete
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February 26, 2015, 08:11:57 AM |
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I don't think it's illegal to buy or sell any volume of Bitcoin. Other than if you deal with ten thousand plus in cash in a transaction maybe there are regulations as with anything else at that volume.
How have you accepted payment for Bitcoin on local Bitcoin?
Well if he ends up trading on localbitcoin, then I am sure it will be a rather large amount than any amount less than 1 BTC. |
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Tabata11 (OP)
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February 26, 2015, 03:35:27 PM |
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I accepted walmart-walmart transfer but the employee working there said I would need some sort of license or paperwork to accept multiple transactions in one day and refused to give cash to me. So I stopped selling bitcoins for a few weeks now and been researching how to sell large amounts legally.
I'm hoping to set up something legal in terms of accepting large amounts of cash deposits daily without running into any trouble.
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SurReality89
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February 26, 2015, 04:35:08 PM |
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Try getting national bank accounts and giving out you account number.
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Tabata11 (OP)
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February 26, 2015, 05:02:29 PM |
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Try getting national bank accounts and giving out you account number.
Yes, I know how to accept cash deposits... I just want to know if there are any legal issues I need to be concerned about. Do I need to register for a money transmitter license in my state to offer this service online? Or can I just report profits to IRS and that will be the end of it? |
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SurReality89
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February 26, 2015, 06:52:43 PM |
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Hey it's still tax season. Someone you might be able to get professional advice for free on that issue.
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odolvlobo
Legendary
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Activity: 4522
Merit: 3426
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February 26, 2015, 11:39:39 PM |
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The laws vary from state to state. Most states require you to register as a Money Services Business and to comply with their regulations. The federal government also requires you to register as an MSB and to register in the states you do business in (to the extent that they require it).
IANAL
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Join an anti-signature campaign: Click ignore on the members of signature campaigns.
PGP Fingerprint: 6B6BC26599EC24EF7E29A405EAF050539D0B2925 Signing address: 13GAVJo8YaAuenj6keiEykwxWUZ7jMoSLt
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Tabata11 (OP)
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February 27, 2015, 02:13:33 AM |
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The laws vary from state to state. Most states require you to register as a Money Services Business and to comply with their regulations. The federal government also requires you to register as an MSB and to register in the states you do business in (to the extent that they require it).
IANAL
Do I need MSB from every state if I conduct business in one state and sell bitcoins to people in other states? For example, let's say I have my business in New Jersey and I sell bitcoins to people in New York or Texas or Florida, do I need a MSB for every state I sell in? |
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schwab
Newbie
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Activity: 25
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February 27, 2015, 06:29:33 PM
Last edit: February 28, 2015, 10:57:52 AM by schwab |
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Do I need MSB from every state if I conduct business in one state and sell bitcoins to people in other states?
For example, let's say I have my business in New Jersey and I sell bitcoins to people in New York or Texas or Florida, do I need a MSB for every state I sell in?
Winner Winner. That is part of the huge impact the NY bitlicense proposal has on the community. There are, maybe, I believe, two states where you may operate without being registered. One is might be(?)Wyoming. |
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Tabata11 (OP)
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February 27, 2015, 07:28:43 PM |
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Do I need MSB from every state if I conduct business in one state and sell bitcoins to people in other states?
For example, let's say I have my business in New Jersey and I sell bitcoins to people in New York or Texas or Florida, do I need a MSB for every state I sell in?
Winner Winner. That is part of the huge impact the NY bitlicense proposal has on the community. There are, maybe, I believe, two states where you may operate without being registered. One is Wyoming. If I get my a federal MSB, wouldn't that cover for all 50 state? |
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MCHouston
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February 27, 2015, 11:11:09 PM |
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The federal MSB is required at the minimum for the type of business you are talking about. Depending on the state you may also need to register your business for a license in that state.
I would guess you only need the Federal MSB and a state one from your state you are physically operating in, but my recommendation is ask a lawyer. One mistake can wind you up in prison when dealing with the difference between MSB vs money laundering as far as the FBI goes.
Good luck with the business.
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BTC 13WWomzkAoUsXtxANN9f1zRzKusgFWpngJ
LTC LKXYdqRzRC8WciNDtiRwCeb8tZtioZA2Ks
DOGE DMsTJidwkkv2nL7KwwkBbVPfjt3MhS4TZ9
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Tabata11 (OP)
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February 28, 2015, 12:08:46 AM |
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Thank you for everyone's opinion!
I will look into getting a federal MSB and my local state MSB. On top of that I will ask for advice from my lawyer and tax accountant to set up my business. I will lock this thread and leave it up for anyone in the future to look back into. I will unlock it again if I get any new advice from my lawyer and accountant.
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fancy_pants
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March 03, 2015, 01:06:30 AM |
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Hi everyone,
I have been buying and selling bitcoins (~25BTC so far) on localbitcoins for two months now and want to get into some serious business to make some profit. I would like to know what steps I need to take to trade high volumes of bitcoins legally in the US. I have read some previous posts about this same topic but I would like to know where I can look for solid advice. I am mainly looking into selling bitcoins by cash deposits at banks.
Also, what is the best exchange to buy bitcoins at the lowest price/fee? I mainly use circle and coinbase but I want to know if there are other exchanges with lower fees and prices.
~Tabata11
I wouldn't even try it. Cops are everywhere and looking to take down any and all business related activity. You'll go to jail for sure. |
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bigasic
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April 02, 2015, 11:22:31 PM |
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You have to have a money transmitter license for each state you do business. I looked up all MT in my state and there were about 20, paypal, etc, only 2 names I didn't recognize. Follow each states rules, plus register with FINcen and you should be fine, but talk to an attorney. its a pain to get a mt license in most states, in my state you have to be worth over a million dollars, 250k bond, etc, nevada, you have to be worth like 100k and have 50k bond, so each state is different. it will cost about 5k to 15k to get licensed in each state if you get a lawyer to do it, which I would.. then you have to report suspicious acivity, etc. if you arent making this a big business, id probably stick to one state...
One idea that i had was to get the list of money transmitters that are smaller companies, and pitch them, see if they want to go into business with you for a piece, use their license.. ive heard of one person doing that...
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Tabata11 (OP)
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April 03, 2015, 05:03:32 AM |
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You have to have a money transmitter license for each state you do business. I looked up all MT in my state and there were about 20, paypal, etc, only 2 names I didn't recognize. Follow each states rules, plus register with FINcen and you should be fine, but talk to an attorney. its a pain to get a mt license in most states, in my state you have to be worth over a million dollars, 250k bond, etc, nevada, you have to be worth like 100k and have 50k bond, so each state is different. it will cost about 5k to 15k to get licensed in each state if you get a lawyer to do it, which I would.. then you have to report suspicious acivity, etc. if you arent making this a big business, id probably stick to one state...
One idea that i had was to get the list of money transmitters that are smaller companies, and pitch them, see if they want to go into business with you for a piece, use their license.. ive heard of one person doing that...
I talked to my accountant and a legal financial adviser on this topic since it's tax season. They advised me not to go through the business license route if my volume is under $250,000 a year. Instead I was advised to trade through a personal bank account and trade as a habit. |
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ashour
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April 11, 2015, 09:37:19 AM |
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You have to have a money transmitter license for each state you do business. I looked up all MT in my state and there were about 20, paypal, etc, only 2 names I didn't recognize. Follow each states rules, plus register with FINcen and you should be fine, but talk to an attorney. its a pain to get a mt license in most states, in my state you have to be worth over a million dollars, 250k bond, etc, nevada, you have to be worth like 100k and have 50k bond, so each state is different. it will cost about 5k to 15k to get licensed in each state if you get a lawyer to do it, which I would.. then you have to report suspicious acivity, etc. if you arent making this a big business, id probably stick to one state...
One idea that i had was to get the list of money transmitters that are smaller companies, and pitch them, see if they want to go into business with you for a piece, use their license.. ive heard of one person doing that...
This, ask a consultant, lawyer or localbitcoin support they might help you out and give you information's regarding the steps you need to take. You will probably need a license for professional money transmission. |
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