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You have to convert USD to some cryptocurrency at some point, and vice-versa, so that's what they'll regulate.
by jeffreyrogers 9y ago
You have to convert USD to some cryptocurrency at some point, and vice-versa, so that's what they'll regulate.
- cal5k 9y agoYup. It's really quite simple - focus on the USD on-ramps and off-ramps.
- lagadu 9y agoIt's effectively the only way to do it but the way around it is fairly simple: use a bank account on another country, one that is OK with crypto along with non-US based exchanges.
- vkou 9y agoMost non-US banks are really, really, really disinterested in dealing with US citizens, because of the regulatory burdens. Unless you're pushing tens or hundreds of millions of dollars around, they'll probably tell you to go pound sand.
- lagadu 9y agoI see, I was unaware of that.
- JumpCrisscross 9y ago> the way around it is fairly simple: use a bank account on another country Willful money laundering isn't a "simple" risk-reward decision.
- lagadu 9y agoI wasn't describing that with the intent of laundering money, I mean simply having money in a different jurisdiction and using it locally. I can use my cards from different countries (I've lived in a bunch of different places) pretty much anywhere around the world, the money I have there in those currencies is subject first and foremost to local laws.
- piracykills 9y agoOf course it won't stop trade completely, but it could tank the price and cause interest to drop off as that's significantly higher effort than "sign up here, use your credit card or bank account directly".
- hesdeadjim 9y agoYea and the IRS will be quite curious about your transaction history when you do.
- wyldfire 9y agoThe IRS and SEC have remarkably different goals. They likely interact very little with one another with regards to enforcement.
- ceejayoz 9y agoWho said they have to interact? The SEC will be interested in the exchange and its staff. The IRS will be interested in individual users' bank transfers.
- mdip 9y agoWell, currently you have to convert cryptocurrency into hard currency to use it, but the former isn't true. I have mined all of my cryptocurrency and that's pretty common among my peers. Money changed hands for me to get that currency -- money paid to the power company and to a few eBay sellers for video cards -- but nothing requiring an exchange fit-for-purpose. If purchasing with cryptocurrency ever truly becomes a thing (yeah, I know it exists, but it's rare and becoming more rare these days), that will affect the other side, as well.