Best way to "cash out" Bitcoin?

Which country, allows you to.

  1. Open a bank account
  2. Connect your Crypto currency exchange, sell BTC and wire to your bank account
  3. Done … Not have to declare any (or very little)

Any other solutions for how to turn BTC into bank money, is appreciated. Thanks

1 Like

Well, it depends on what you want to do with the money.

If you want to spend it on daily life costs, you can use debit cards connected to your crypto wallets (BTC, BCH, ETH…) or even to your stablecoin wallet (USDT, USDC…) in case you want to get rid of crypto volatility against fiat. Coinbase provides Visa cards connected to your crypto wallets. You can simply move some money there and spend it anywhere. If you Google “debit card crypto” you will find different providers out there.

The solution above provides more privacy than moving money to a bank, since they will not exchange so many information about you and your finances as banks do (banks are basically spies for the tax authorities).

If you move 5, 6 or 7 figure amounts to a bank in any developed high tax jurisdiction, you may get into trouble over time, and in many cases, it’s the typical trap that triggers the alert to the tax authorities to claim a part of the cake.

But, if you really want to take money out into a bank removing your tax burden, I would suggest:

  • Open one or multiple bank account in non-CRS jurisdictions (Georgia, Albania, Montenegro, Cambodia…).
  • Transfer there relatively small amounts randomly every month ($3k-$6k).
  • Spend it over time with debit cards. Avoid using ATMs unless extremely necessary.
  • If you have large sums of money, try buying real state with crypto.

Note that the safest way to spend your crypto money is by staying in the crypto world as much as possible.
Fiat money ecosystem is controlled by governments and bullshit AMLs regulations, which they will always want to steal the money from your pocket, so even if you use “safe” bank accounts, there is always a risk over time if you don’t take conservative decisions and fly under the radar, which depending on the sums involved, it may be complex.

Good luck with the crypto spending!

4 Likes

Thanks Tom for an extensive answer.

I also believe crypto-cards is the best solution (of course licensed in a non CRS jurisdiction).

The problem is if I want to make a large purchase, like an apartment priced at 5 to 6 figures. That needs to be wired. Maybe that kind of amount just have to be declared and taxed to get into the system.

I was recommended Georgia, they are very open to cryptos, and the pay good interest. Russian heaven

I have been looking into Georgia too. Do you think it’s possible to move there, get a residency, bank account… Connect to a crypto-exchange and cash out to your bank without paying taxes. Is cryptocurrencies tax free?

I don’t know all that. But I know it’s Russian heaven

This question is better suited for /r/bitcoin (minus Reddit’s idiotic thread locking after 6 months).
See for example this extensive guide written in the heyday of Bitcoin (Dec 2017):

@tab what exchange can I link up to and use a international credit card to spend my crypto assets such as btc. I am not a resident of eu, I am in India but travel internationally and would like the convenience to spend without having to move the money to any bank account.
Any service that offers the crypto to prepaid credit card would be appreciated. Thank you

None that I know offers it to non-EU residents. Monaco card (Crypto.com) is one, you need to be an EU resident.

Now, what you might do is open a bank account with N26 (as long as you’re physically present in EU when requesting the card, you’re good), then use their bank statement for opening an account with Monaco/Crypto.com.

Coinbase Card is good, but might not work in India.
There is also AdvCash: https://advcash.gi/en/
You can research it by yourself: https://news.bitcoin.com/13-crypto-debit-cards/