Is it illegal for me to sell my Bitcoins?

[ThunderThomas]

I believe that governments are afraid of the bitcoin because for one they don't have any control over it, plus the things that you buy with bitcoin, you don't pay taxes over it, thus the governments doesn't make any money of off it.

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[newbitcoins]

I believe that governments are afraid of the bitcoin because for one they don't have any control over it, plus the things that you buy with bitcoin, you don't pay taxes over it, thus the governments doesn't make any money of off it.

In my country, when I buy goods with bitcoin, I pay tax (VAT) on the goods with bitcoin.  The retailer will pay fiat to the government instead of bitcoin.

[Surge_PR]

Its not illegal as long as you're reporting your taxes.

[BurtW]

Its not illegal as long as you're reporting your taxes.

You can be arrested even if you pay all your taxes. 

I was arrested for selling my Bitcoins using localbitcoins.com

I paid all of my capital gains taxes on all of my trading - that was not the issue.  The legal issue boiled down to one question:  was I operating a business or not.  They claimed it was a business, I claimed it was not.  After being forced to "donate" about $40,000 in cash and $40,000 in Bitcoin to their Federal Asset Forfeiture slush fund we agreed to disagree and they dropped the charges.  Defending me against the federal felony charge [Operating a business without a license, up to five years in prison and a $250,000 fine] did end up costing us almost $300,000 of our retirement funds, our daughter's college fund, our savings, and the equity in our house.

You can read all about it here:

http://www.jmwagner.com/
http://www.burtw.com/

However, if you sell your Bitcoins though an exchange you will not run into this specific issue since there is really no way they can call it a business, go after you, and then grab all the assets they can get their money grubbing hands on.

[enthus]

I do not think this is a very heavy enforced rule, just keep amount small and try not to be explicit about your btc transactions

[enzu]

I do not think this means it is illegal to sell, but may be you should be very careful and only use cash

[LuckyYOU]

It depends on where you're from. It's best to always report it when you're doing your taxes just to be safe and be sure you won't run into those kinda of problems of having to pay back.

[keystroke]

Its not illegal as long as you're reporting your taxes.

You can be arrested even if you pay all your taxes. 

I was arrested for selling my Bitcoins using localbitcoins.com

I paid all of my capital gains taxes on all of my trading - that was not the issue.  The legal issue boiled down to one question:  was I operating a business or not.  They claimed it was a business, I claimed it was not.  After being forced to "donate" about $40,000 in cash and $40,000 in Bitcoin to their Federal Asset Forfeiture slush fund we agreed to disagree and they dropped the charges.  Defending me against the federal felony charge [Operating a business without a license, up to five years in prison and a $250,000 fine] did end up costing us almost $300,000 of our retirement funds, our daughter's college fund, our savings, and the equity in our house.

You can read all about it here:

http://www.jmwagner.com/
http://www.burtw.com/

However, if you sell your Bitcoins though an exchange you will not run into this specific issue since there is really no way they can call it a business, go after you, and then grab all the assets they can get their money grubbing hands on.

Read through your story. Respect.

[BurtW]

Its not illegal as long as you're reporting your taxes.

You can be arrested even if you pay all your taxes. 

I was arrested for selling my Bitcoins using localbitcoins.com

I paid all of my capital gains taxes on all of my trading - that was not the issue.  The legal issue boiled down to one question:  was I operating a business or not.  They claimed it was a business, I claimed it was not.  After being forced to "donate" about $40,000 in cash and $40,000 in Bitcoin to their Federal Asset Forfeiture slush fund we agreed to disagree and they dropped the charges.  Defending me against the federal felony charge [Operating a business without a license, up to five years in prison and a $250,000 fine] did end up costing us almost $300,000 of our retirement funds, our daughter's college fund, our savings, and the equity in our house.

You can read all about it here:

http://www.jmwagner.com/
http://www.burtw.com/

However, if you sell your Bitcoins though an exchange you will not run into this specific issue since there is really no way they can call it a business, go after you, and then grab all the assets they can get their money grubbing hands on.

Read through your story. Respect.

Thanks.

[gatecoin]

I heard that some people have been arrested and charged with "transmitting money without a license" for selling Bitcoins.

Does this mean it is illegal for me to sell my Bitcoins?

I was arrested for selling my Bitcoins using localbitcoins.com

I paid all of my capital gains taxes on all of my trading - that was not the issue.  The legal issue boiled down to one question:  was I operating a business or not.  They claimed it was a business, I claimed it was not.  After being forced to "donate" about $40,000 in cash and $40,000 in Bitcoin to their Federal Asset Forfeiture slush fund we agreed to disagree and they dropped the charges.  Defending me against the federal felony charge [Operating a business without a license, up to five years in prison and a $250,000 fine] did end up costing us almost $300,000 of our retirement funds, our daughter's college fund, our savings, and the equity in our house.

You can read all about it here:

http://www.jmwagner.com/
http://www.burtw.com/

However, if you sell your Bitcoins though an exchange you will not run into this specific issue since there is really no way they can call it a business, go after you, and then grab all the assets they can get their money grubbing hands on.

Dear Burt,

As a fellow-bitcoiner, I'm terribly sorry to read about your experience and the impact it has on your family's well-being. I think we all know who the real 'terrorists' are.

-Inggrid @Gatecoin

[gerald-80]

You are providing much needed liquidity to your local Bitcoin economy. Keep up the good work!

[cryptoclone.com]

I am quite sure that a license is not permitted to transfer bitcoins. Please remind yourself that you may need to comply with your local tax law if you decide to sell.

[Fredomago]

You are providing much needed liquidity to your local Bitcoin economy. Keep up the good work!

In some countries/states, if your transactions are over certain limit, you have to apply for a license. Otherwise, it is illegal.

[BurtW]

You are providing much needed liquidity to your local Bitcoin economy. Keep up the good work!

In some countries/states, if your transactions are over certain limit, you have to apply for a license. Otherwise, it is illegal.

What exactly is the limit in your jurisdiction.  Please give source.

[calkob]

I doubt it very much, i would say that you would only get into trouble if you where making a business out of it and you didnt pay your taxes.  Here in the UK i really dont think there would be any laws against selling your bitcoin as long as you didnt make a fortune, but then thats a whole other issue.  its a tax issue not a bitcoin issue.

[BigBoy89]

I doubt it very much, i would say that you would only get into trouble if you where making a business out of it and you didnt pay your taxes.  Here in the UK i really dont think there would be any laws against selling your bitcoin as long as you didnt make a fortune, but then thats a whole other issue.  its a tax issue not a bitcoin issue.

I don't think it's illegal until and unless you pay your taxes and Bitcoin is something which you could probably save and keep it secret and spend it when it becomes mainstream without any fear

[Cresciuanto]

how can you say that ? and how is it be so? i think it is legal to sell or to keep your bitcoin. it is your property and you have the fully rights to use it according to your own wishes.

[Fredomago]

how can you say that ? and how is it be so? i think it is legal to sell or to keep your bitcoin. it is your property and you have the fully rights to use it according to your own wishes.

i think the possibility that it can be illegal or you can't hold it if you are in north korea because there everything is under the control of their minister even internet.

[abugseuf]

It depends on where you're from. It's best to always report it when you're doing your taxes just to be safe and be sure you won't run into those kinda of problems of having to pay back.

can you mention any place where people pay taxes on bitcoin. i think still there is not a  single country who have imposed tax on bitcoin. it is still tax free and the reason is that still not a sing le country legalize bitcoin.

[BurtW]

It depends on where you're from. It's best to always report it when you're doing your taxes just to be safe and be sure you won't run into those kinda of problems of having to pay back.

can you mention any place where people pay taxes on bitcoin. i think still there is not a  single country who have imposed tax on bitcoin. it is still tax free and the reason is that still not a sing le country legalize bitcoin.

What?

In the USA every single Bitcoin sale is taxable as a capital gain.  

The IRS has ruled that Bitcoins are just like any other stock or property: you pay the capital gains tax on the difference between what you bought it for (the basis) and what you sold it for.

If you sell it for a loss then you can figure those losses against your gain just like any stock purchase and sale.

The difference between long term and short term capital gains also applies to Bitcoin sales.