Q: Hi,Selling gift cards on paxful.com for bitcoin, is it against any law?
I sell electronics. one of my customers wants to pay by giving me visa gift cards. I want to get the money off the gift cards. (my credit card processor doesn't let me swipe it on my credit card machine). can i buy on paxful.com BTC with the visa gift cards and then sell the BTC on coinbase.com for cash? Paxful.com makes all their customers verify themselves.
is there anything illegal with this?
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A:
Trading Visa gift cards for Bitcoin on platforms like Paxful.com and then selling Bitcoin for cash on Coinbase.com is not inherently illegal. However, it's important to be aware of and comply with the terms of service of both platforms. Also, be mindful of federal and state regulations regarding money transmission and anti-money laundering laws.
Since these transactions involve cryptocurrency, it is essential to report any gains or losses to the IRS for tax purposes. The legitimacy of the source of the gift cards should also be ensured to avoid inadvertently participating in fraudulent activities.
Keep in mind that different states may have varying laws regarding digital currencies and their exchange. It is advisable to consult with a legal professional experienced in banking, international, and internet law to ensure that all aspects of your transactions comply with applicable laws. This will help you navigate any potential legal complexities and remain compliant with regulatory requirements.
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