A buddy of mine got some Bitcoin on Localbitcoins without KYC. Now he’s got a few grand. He bought more on Coinbase too. We wondered if keeping the non-KYC Bitcoin is smart since the price might hit $100K and he won't be able to explain where it came from.
ATM options might get regulated soon. If he's worried about making so much cash, better explore different methods. There's this thing everyone's talking about now, like some treasure hunters you give them your Bitcoin, they hide it, and you’re the only one who knows where it is. But hey, trusting someone online can be risky.
This feels like a dilemma for many people these days. Taxes and crypto laws can vary a lot by location. Some countries are chill about taxes. Honestly, chatting with a tax expert might save him more than dealing with constant exchange fees.
Happened to me too. My local exchange froze my account when they questioned my Bitcoin source. This was back when crypto laws were nonexistent. I had to provide proof from another exchange that I moved funds from there. Total pain...
If he bought BTC with legit cash from Localbitcoins, proving its origin should be fine. But if he bought it with cash at a meet-up, it's a different story. ATMs have fees, and to move it to Coinbase he’d need to deposit into the bank. Sounds tricky to legitimize that.
I usually do this too when things dip change fiat into BTC and keep records of that. But honestly, it’s just to shield my bank from getting suspicious if I wanna sell a big chunk later. In many EU places, cash deals under a certain limit are still cool without KYC.
I should’ve clarified, the BTC was bought with cash physically. I tell my friend to go legal, seems easier in the long run because non-KYC could create issues. He could withdraw a small amount from an ATM each month and then send from his bank to Coinbase.
I don’t want to use KYC methods either. It’s not about avoiding taxes. In many countries, people keep Bitcoin secret just to avoid complications with the authorities. If crypto was accepted with clear laws, folks wouldn’t mind paying taxes.
None of my Bitcoin's been KYC’d and I don't have issues using it in the U.S. Exchanges ask where I got my coins, I just say I got them anonymously ages ago. Works for me.
I think non-KYC BTC won’t cause many headaches if the money's traceable to his income. Buying 10 BTC in 2012 is different from 2020 for sure. But I dunno, banks can be really cautious with crypto, cash BTC might raise flags.
Just curious, how would you explain a huge cash deposit to buy crypto? Best way is to declare some income each year, avoid yellow flags. Declaring cash might raise more questions.
Totally agree, the government will regulate things we profit from eventually. Plus, why hold non-KYC Bitcoin when there are plenty of P2P or OTC options without KYC now?
I think you're worried over nothing. Bitcoin ATMs already have limits for KYC, it's not like non-KYC coins are a crime unless tied to something illegal. Many got their coins before strict regulations.
What amounts are we talking about here? Are they declared on your tax forms? I get that you want privacy, but $1M in cash without proof of origin raises huge alarms.
Accusations of money laundering don’t equal guilt. It might just mean more paperwork. Honestly, if you kept records of your purchases, it's all on the blockchain.