Silk Road forums

Discussion => Security => Topic started by: MichaelWesten on July 13, 2013, 04:50 pm

Title: Buying large amounts of bitcoins with a bank account
Post by: MichaelWesten on July 13, 2013, 04:50 pm
I have a couple of different options on buying large amounts of bitcoins, but they both include using my bank account.  I am not concerned with SR because I don't make purchases on here.  I have been considering trying to fill the BTC purchasing void but as a US citizen, I want to know the legal implications (money transmitter and so forth) for buying large amounts of bitcoins for resale.  Even pointing me in the right direction to get this advice would help.
Title: Re: Buying large amounts of bitcoins with a bank account
Post by: PillPirate on July 14, 2013, 12:15 am
There really shouldn't be any repercussions to buying bitcoins seeing that they are in fact legal. But, I believe that there is normally a limit in which you can buy at a time, but I'm sure google can fill you in with how much exactly that might be.
Title: Re: Buying large amounts of bitcoins with a bank account
Post by: MichaelWesten on July 14, 2013, 01:21 am
but if I am selling them I am going to have to register as a MSB, and if I don't say I'm selling them my bank is going to want to know where I'm getting all the cash from.
Title: Re: Buying large amounts of bitcoins with a bank account
Post by: Trippinmonkey on July 14, 2013, 01:27 am
It's allowed to buy at a low price and sell at a higher price, right?
Same with all other investing products?

Title: Re: Buying large amounts of bitcoins with a bank account
Post by: Trippinmonkey on July 14, 2013, 02:13 am
So in other words you are saying that you believe BTC's will rise in amount of $'s they're worth?
I know that if a lot of people start buying again they will rise a bit. But if they don't sell for higher prices then they help them drop again if they get anxious that they need to sell all they have because they'd lose a lot otherwise...
Title: Re: Buying large amounts of bitcoins with a bank account
Post by: meta on July 14, 2013, 06:22 am
So in other words you are saying that you believe BTC's will rise in amount of $'s they're worth?
I know that if a lot of people start buying again they will rise a bit. But if they don't sell for higher prices then they help them drop again if they get anxious that they need to sell all they have because they'd lose a lot otherwise...
I have a couple of different options on buying large amounts of bitcoins, but they both include using my bank account.  I am not concerned with SR because I don't make purchases on here.  I have been considering trying to fill the BTC purchasing void but as a US citizen, I want to know the legal implications (money transmitter and so forth) for buying large amounts of bitcoins for resale.  Even pointing me in the right direction to get this advice would help.

Since buying bitcoins is still legal in the US (we'll see how long that lasts...), there should be no problem. How much are we talking here: $1,xxx; $1x,xxx; or $1xx,xxx worth?

If suspicion arises, just tell them that you're an investor speculating on the price of bitcoin. Speculation and investment on/in commodities, whether physical or not, is completely legal as an act in itself as long as that commodity is legal to possess.
Title: Re: Buying large amounts of bitcoins with a bank account
Post by: TreadLight on July 14, 2013, 07:26 am
but if I am selling them I am going to have to register as a MSB, and if I don't say I'm selling them my bank is going to want to know where I'm getting all the cash from.

I doubt they will care much where the money comes from, just make sure you pay your taxes on any profit that is being funneled through your bank account as it will be reported to the IRS (if you are in the US). Even the IRS doesn't really care where your money comes from as long as they get their cut. But if you run into any other type of LE you should have an explanation for it, and buying bitcoin low and selling high is still legal.
Title: Re: Buying large amounts of bitcoins with a bank account
Post by: Yousaf on July 14, 2013, 07:46 pm
Just because it is legal doesn't make it not weird.  There are plenty of ways of obtaining bitcoin anonymously, if you are buying drugs with your coins you're already doing something very wrong.  Why would you even risk having that information easily accessible to them?