Is it legal to convert bitcoin to USD?

5

I've been told by many people that bitcoins are fully legal to use as currency, but not legal to convert to USD and use as US currency.

Is this true? If so, what references back this up? If not, what references deny it?

user6561

Posted 2013-08-30T02:11:36.113

Reputation:

1Can you find any links to people stating this? – John Bensin – 2013-08-30T02:53:36.130

@John They were private conversations, and it wouldn't be right for me to disclose them. – None – 2013-08-30T03:27:16.467

1If they're just claims made in private without sources to back them up, I wouldn't lend them any credence by default. I'm obviously not asking you to disclose your friends, but I presume they heard it somewhere (or thought of it themselves). – John Bensin – 2013-08-30T03:29:01.577

They've definitely read this somewhere, but I'm not sure where, and they're having trouble finding the link. Perhaps there's nothing to worry about here? – None – 2013-08-30T04:07:42.640

1@Emrakul: There's nothing to worry here. You need proper licenses to be a business doing conversions for customers, but that's it. – Meni Rosenfeld – 2013-08-30T04:37:24.523

Answers

10

I'd actually like to see a reference to someone saying that it's illegal.

...because it's legal.

FinCEN guidance establishes who must register with government and when one must pay taxes (sell bitcoin for USD, pay taxes on gains).

Colin Dean

Posted 2013-08-30T02:11:36.113

Reputation: 6 834