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I just read an article saying that arrests of persons exchanging Bitcoins for Fiat are on the rise. There are already several persons jailed for selling or exchanging bitcoins.

Here's the link...

https://bitcoinist.com/convictions-jail-time-on-the-rise-in-the-u-s-for-selling-bitcoin/

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Well, Bitcoin transactions are not considered to be legal in many countries including India. There have been cases in India where people have been arrested for starting an ATM for the exchange of various cryptocurrencies into currency. However, this case of people been arrested for exchanging Bitcoins to currency in the US is something that I have not heard before. I think the arrests may also be related to some illegal activity for which the Bitcoins may have been used.

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On 12/7/2018 at 3:32 AM, Alania said:

It's not that Bitcoin is illegal, the problem is that it's not recognized by many, and for obvious reasons. 3rd parties want to have a monopoly on everything.

True. Bitcoin is not recognized by some countries due to this. Bitcoin is a peer-to-peer currency that nobody can own and everyone can take part. There is no monopoly. No one can control Bitcoin unlike the fiat currency.

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  • 3 weeks later...

This is a complicated topic, and the law enforcement themselves do not always know the correct answer either. Increasingly, it looks like merely buying or selling bitcoins for yourself is probably not considered money transmission. Perhaps with the BitLicense, in New York you may require a license for this, but if I understand it correctly, on federal level you wouldn't need one. If you're trading for speculation, if you're a using it just for payments, if you're not providing custodial accounts, if you're not doing it for profit, it may not be money transmission either.

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