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You know you're still supposed to collect all the same info for a BTC transaction, right? Just because it's easy doesn't mean it's not tax evasion.
by jayd16 4y ago
You know you're still supposed to collect all the same info for a BTC transaction, right? Just because it's easy doesn't mean it's not tax evasion.
- olalonde 4y agoNo, you are not supposed to. KYC is a legal requirement for money transmitters[0]. It does not apply to Bitcoin users. [0] Money transmission is the act of receiving currency from one party and transferring it to another party. Basically, middlemen in a transaction (e.g. banks).
- dragonwriter 4y agoIf you are processing financial transactions (including something of “value that substitutes for currency”) between other people at their direction, you are a money transmitter. The whole point of both Bitcoin is decentralizing this function from banks to a network of miners, and a similar thing is done in Lightning with its nodes.
- olalonde 4y agoThat's correct. In the case of Bitcoin, the thing that most closely resembles a "money transmitter" are miners but FinCEN ruled that they are not[0]. A sensible decision because otherwise, Bitcoin would have effectively been banned from the United States (or Bitcoin miners, at least). [0] https://www.coindesk.com/policy/2014/01/31/fincen-declares-bitcoin-miners-investors-arent-money-transmitters/ https://www.coindesk.com/policy/2014/01/31/fincen-declares-b...
- toolz 4y agoIgnoring the fact it isn't tax evasion - just because it's against the law, doesn't mean it's unethical. Further, obeying laws can be (and often is) unethical. Not everything is on the level of requiring people to turn in jews, but there's plenty of room to argue that companies that are ill-equipped to protect your personal data should not be allowed, much less required, to collect your identifying information.