Can a US citizen do a crypto-to-crypto trade with someone from another country without needing KYC info? Like, if Bob has $100k in some altcoin and Alice wants to buy it with Bitcoin, and Alex is the escrow. What do we need to know about KYC in this case?
P2P Crypto Trades for US Citizens: What's the Deal?
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atomicpixelMember
Posts: 10 · Reputation: 199
#2Mar 13, 2020, 04:53 AM
I don't see any reason why it shouldn't be fine. When you make a profit, gotta pay capital gains tax, no matter if it’s USD or crypto. In the US, Bitcoin is treated as property, so people should be able to trade property freely. But if it's a high-volume trade, you might need to register as a money transmitter. Just look at that Michigan case from a while back... guy got charged for a $56k exchange on LocalBitcoins. KYC minimum would probably include just basic info.
Seems like many here are treating it like a business, constantly buying and selling with a markup. That triggers all the AML stuff. Like in that Stetkiw case, he got the charges dropped but had some serious complications due to other findings on his computer. No access to the full details though. Just saying, be careful with high volumes.