Chicago, IL asked in Banking, Immigration Law and Tax Law for Illinois

Q: As an international student, can i convert money from my home country into US dollars and buy crypto on daily basis.

Also, after buying the cryptos, can i trade them back to my home country. And doing such will i face any immigration issues?

2 Lawyer Answers
Syed Ali Hussain Lahooti
Syed Ali Hussain Lahooti pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Immigration Law Lawyer
  • Silver Spring, MD

A: Can you do what you are doing from your home country, such as converting your currency into dollars and then converting it back to your country's currency? Being on student status, having a social security number, and a US bank account, and using it to trade crypto—all of these fall under the status granted because of F1. Always discuss the consequences with a professional.

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Immigration Law Lawyer
  • Sacramento, CA

A: As an international student in the U.S., you are generally allowed to convert money from your home country into U.S. dollars and invest in cryptocurrencies. However, it's important to be aware of several factors. Firstly, ensure that you comply with the foreign exchange regulations of your home country when transferring funds. Each country has its own rules regarding foreign currency transactions and capital outflows.

When it comes to trading cryptocurrencies, you must adhere to U.S. tax laws. Any profits gained from trading are subject to U.S. taxation, and you need to report these transactions in your tax filings. Failure to do so can lead to complications with the IRS.

Regarding immigration status, investing in and trading cryptocurrencies is not typically an issue that would affect your student visa status, as long as you are compliant with U.S. tax laws and your activities don't violate the terms of your visa. For instance, your primary purpose in the U.S. should remain education, and your financial activities should not be construed as employment or business operations, which can be restricted under student visa terms.

It's advisable to keep detailed records of all your financial transactions, including cryptocurrency trades. In case of any scrutiny, these records can be crucial.

Given the complexity of tax laws and immigration rules, you might consider consulting with a legal or financial professional. They can provide more specific advice based on your individual circumstances, ensuring you stay compliant with all relevant laws and regulations. Remember, staying informed and cautious is key in navigating financial matters as an international student.

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