Questions tagged [cryptocurrency]

Questions concerning the laws on creating, using, transfering and realising cryptocurrency.

Cryptocurrency is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. It typically does not exist in physical form (like paper money) and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems.

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Is it against the law to sell Bitcoin at a flea market?

I think this would be a cool side gig and I have some ideas about how to make Bitcoin more accessible to the general public. But I don't want to break the law either. These would be normal flea markets where vendors pay $20 for a booth and then sell…
user875234
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Can a person be prosecuted for unknowingly possessing illegal computer files?

Today there was a news article that claims researchers have found illegal files embedded in the Bitcoin blockchain. This is a large database-type file that contains a list of all the Bitcoin transactions that have ever happened along with possible…
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Can one avoid paying US income tax by being paid in Bitcoin?

Is it possible for a U.S. citizen to evade income tax by being paid in Bitcoin?
mcchucklezz
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Can a person hack bitcoin private keys and legally claim the bitcoins for himself?

First, some background knowledge — bitcoins are a form of cryptocurrency that can be stored in "addresses". Each bitcoin address is linked to a specific private key. To access bitcoins in a specific address, a person needs a private key in order to…
Anonymous
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How does insider trading law affect bitcoin exchanges?

The Bitcoin network is predicated on the premise that it is difficult to find 'low' hash values for a given input. This is an incredibly safe bet because of the way the algorithm is implemented - if you change one byte in the input then the output…
Stewart_R
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Is an 'honest', tongue-in-cheek ponzi scheme ICO still illegal to operate?

I've just come across what appears to be a deliberate parody ICO known as PonziCoin. It declares itself to be "The World's First Legitimate Ponzi Scheme", on the grounds that it is open and transparent about its intentions to funnel late investors'…
Daniel Hume
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When does it become illegal to exchange bitcoin for cash?

I've read several "stings" and raids for running unlicensed money transfer businesses for people buying and selling bitcoin on localbitcoins. All of the articles are extremely vague and don't explain exactly when it becomes illegal. Is there any…
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Do FCA rules mean financial firms have to refuse service if their customers are not knowledgeable enough?

I recent weeks I have had emails from multiple cryptocurrency exchanges requiring me to fill in a document online to keep using their services. They describe this as a questionnaire but say "You will need to complete and pass the questionnaire" and…
User65535
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Is it possible for an individual to commit money laundering like a bank?

In the classic example of money laundering, Charlie the Criminal would take his dirty money to Bob the Banker and get it in some form that is spendable and transferable. In this situation it would be expected that Charlie would know it is dirty…
Sam
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What are the consequences of being party to a OFAC prohibited transaction?

The US Treasury has sanctioned Tornado Cash which is a tool for mixing Cryptocurrency. Since the sanctions don't actually stop this tool from working someone has used it to send small amounts of funds to various celebrities. In my understanding…
blues
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Paid in Bitcoin - Company can't deliver and wants to return money in other currency

For about one month I ordered something at a company and paid in bitcoin (0.015Ƀ). The value at that time was about 25$ The company confirmed that they received the payment. Unfortunately they can't deliver the product (after I asked them when I can…
user9886
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Exploiting a bug in bitcoin is unethical, but is it illegal?

Suppose I found a bug in bitcoin or any other cryptocurrency that allows me to create as many coins as I want. What would be the legal implications in jurisdictions like: USA Europe (UK, Germany, France) Asia (China, India, Russia)
7uhi0
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Bitcoin service regulations

Most governments don't consider Bitcoin to be currency, so it's somewhat of a legal gray zone regarding regulation. I know most exchanges must follow KYC/AML systems because they trade with fiat too, but for services which only exchange…
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Is crypto sniping illegal?

The promoter of multiple cryptocurrency meme coins, including Javier Milei linked LIBRA and Trump linked MELANIA coins, has claimed that sniping is commonplace. My understanding is that this involves having prior knowledge about an instrument…
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Is it legal to create a cryptocurrency?

I want to create a new cryptocurrency as an experiment. Is this legal? My cryptocurrency won't use a blockchain, so laws specifically regulating blockchains might not apply. The system will be completely decentralized. Mining doesn't create any form…
Someone
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