How to Cash Out Bitcoin in 2022: Legal and Legal Ways to Cash Out Bitcoin (BTC) Cryptocurrency

The editors of Profinvestment.com offer detailed instructions on how to legally and safely cash out Bitcoin in 2022. This can be done in different ways, let’s consider the most comfortable of them: cryptocurrency exchanges, crypto exchangers, wallets, electronic payment systems, peer-to-peer platforms, Telegram bots, as well as Bitcoin ATM, also called cryptomats. We will also touch on the topic of how legal it is to conduct such operations in the Russian Federation, the Republic of Belarus and Ukraine.

Legality of Bitcoin

Different countries treat cryptocurrency differently, from a complete ban to active support.

In Russia

In February 2022, the State Duma adopted in the first reading a bill on the taxation of transactions with cryptocurrencies. Digital assets are now officially property, and therefore income from them is subject to regulation of the Tax Code. The advantage is that now the owner of the coin has the right to defend his rights in court and count on legal protection.

Features of the project:

• Income from transactions with digital assets is subject to income tax or personal income tax. Citizens who make transactions with cryptocurrency worth less than 600,000 rubles per year are exempt from taxation.
• Cryptocurrencies are not subject to depreciation and are not subject to VAT.
• There is a fine of 40% of the amount in case of incomplete payment of tax.
• There is a fine of 10% of the amount for missing or incorrectly filling out a declaration.
• A fine of 50,000 rubles is provided for failure to comply with declaration deadlines.

The State Duma Committee on State Construction believes that it is also necessary to include the concept of cryptocurrency in the Civil Code in order to determine its relationship with concepts such as money or digital rights.

In Belarus

On December 21, 2022, Decree No. 8 “On the development of the digital economy” was signed in the country. According to its provisions, a preferential legal regime for residents of the Hi-Tech Park will remain in effect until 2049. It creates comfortable and relatively free conditions for resident companies. The mode is aimed at working with companies in the IT sector and the digital economy.

In particular, until 2023, citizens of the Republic of Belarus do not pay taxes on income from their cryptocurrency transactions, and companies are exempt from VAT and income tax, and their income tax rate is also reduced. Instead, a park management fee of 1% of gross receipts is applied.

In Ukraine

In December 2022, the Rada approved the bill “On Virtual Assets” in the first reading. From this document it follows that this market will be regulated by the Ministry of Digital Transformation. Legal regulation of the sphere will allow cryptocurrency organizations to legally operate in Ukraine.

Based on the bill, digital assets are an intangible benefit, the nuances of its use are determined by the Civil Code of Ukraine. Thus, virtual assets can certify property or non-property, and all the restrictions that apply to the use of other objects of civil law are applied to them.

Cryptocurrency withdrawal options

First of all, when choosing ways to solve the problem of cashing out cryptocurrency, people look at the following arguments:

• Output security . Few people would like to use a service where half of the offers to buy coins come from scammers;
• Price . Many services charge commissions for their services, so it is fundamentally important at what price your asset will be sold;
• Speed ​​. An important parameter is the time it will take to complete the operation of exchanging and withdrawing money;
• Convenience . How many steps will you have to take to exchange cryptocurrency for fiat?

Exchanges

The first and one of the most reliable withdrawal methods is to use cryptocurrency exchanges. One of the most popular platforms that support the deposit and withdrawal of deposits to a bank card in rubles, the largest and most popular crypto exchange in the world is Binance.

Exchanges are often a reliable tool, because when working with fiat currencies, they have licenses for such activities. To cash out cryptocurrency through an exchange, you need to register, transfer tokens to your account and use the withdrawal of cryptocurrency. As a withdrawal method, you can choose a bank card, Qiwi, Webmoney, Yandex.Money, PayPal or another service that works with fiat. Commissions are often quite low.

Rating of TOP 5 cryptocurrency exchanges

For safe and convenient purchase of cryptocurrencies, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support deposits and withdrawals of funds in rubles, hryvnias, dollars and euros.

Especially for beginners, we have prepared a detailed guide: How to buy Bitcoin on a crypto exchange for rubles?

The criteria by which the rating is given in our rating of crypto exchanges:

• Reliability of operation
  - stable access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the period of operation on the market and daily trading volume.
• Commissions – the amount of commission for trading operations within the platform and withdrawal of assets.
• Reviews and support – we analyze user reviews and the quality of technical support.
• Interface convenience – we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
• Features of the platform are the presence of additional features - futures, options, staking, etc.
• The final score is the average number of points for all indicators, determines the place in the ranking.

Exchangers

A very common method of cashing out cryptocurrencies is to use online resources that offer crypto to fiat exchange. This is a rather risky method, because the services do not have any licenses, guarantees or control, and all operations are carried out only on the trust of users and reputation. But thanks to services like Bestchange, which feature many working exchangers, their prices and ratings, the security of cashing out through such services has increased significantly.

For your convenience, we have prepared our own rating of reliable exchangers in which we ourselves have been making exchanges for several years:

• Matby,
• 60sec,
• WW-pay.

“Matbi” is a very interesting exchanger with its own “chips”. It has been on the market for a very long time, and since 2014 it has hundreds of thousands of customers. It is allowed to make a one-time exchange of 3,000,000 rubles, which indicates potentially large reserves. All transactions are carried out automatically, 24 hours a day.

“Matbi” will require quick registration using a phone number or email, and may also require identification verification. An application is available for Android and iOS, through which you can also register and start using the service. And payment on “Matbi” is made from the user’s account in the exchanger, and not directly from a Qiwi card or wallet, for example. But it is possible to top up your balance on Matbi without commission: either from a VISA\Mastercard or through a number of other payment systems.

If you don’t want to spend a lot of time studying services, you can simply choose the most profitable and reliable of the listed exchangers - 60cek. There, as a rule, there are large limits (the presence of cryptocurrency in the exchanger’s account) and the exchange rate is the most favorable due to turnover.

One of the main advantages of Matbi is that this exchanger allows you to store digital assets under reliable protection for an online wallet. Fund security is ensured by three-factor authentication. This is when you need to know three passwords to withdraw coins. The first one is “pin”. The second is the one that will be sent via SMS to the phone number specified during registration. And the third one is received by email.

Peer-to-peer exchange

On the Internet you can find many resources for communicating and discussing transactions for exchanging cryptocurrencies for fiat. People arrange personal meetings or conduct exchanges via the Internet. The advantages are: the absence of intermediaries and commissions, the ability to agree on any conditions or course.

The disadvantage is very obvious - high risks of losing money and “falling” for a scammer. No one controls such exchanges, and no one except you will protect your funds. In this case, the safest way to conduct an exchange without intermediaries is a personal meeting.

Also try to use proven services to search for transaction options, where it is most difficult for scammers to work. For example, Binance P2P.

Electronic money services

Not so long ago, support for cryptocurrencies was added to the same Webmoney. To cash out, you will need to top up your account using tokens, and then convert to the currency you need by sending the funds to your fiat wallet.

Also, similar opportunities are provided by other payment systems, such as Advcash, Payeer and more. It's convenient, safe and simple. But the disadvantage may be an insufficient number of supported cryptocurrencies, slow exchange and withdrawal, and not the lowest commissions.

Using “crypto machines”

A terminal that allows you to cash out and withdraw cryptocurrency, working like a regular ATM. Cryptocurrency ATMs are not common in Russia, including due to the legally unclear status of cryptocurrencies.

Although this is a fairly convenient and standard method in a functional sense, commissions can frustrate anyone who wants to use it, because sometimes they reach 10%.

Payment cards

There are several projects that have released an analogue of bank cards linked to cryptocurrency accounts. With the help of such cards you can pay in stores and on the Internet, and conversion to fiat occurs automatically. In Russia this method is practically not used.

How to cash out bitcoins and not fall under tax audit?

Cashing out bitcoins itself is not punishable by law. The danger lies in where a particular person gets the funds to buy cryptocurrency. If he cannot prove his income, then the likelihood of criminal proceedings is high.

An ordinary citizen can safely buy and sell virtual money in an amount not exceeding 600 thousand rubles per month. Most payment systems have just such a limit on transactions in their electronic wallets. If a citizen has several wallets registered in one service, they are interconnected, and the transaction amounts exceed the monthly limit, then the service has the right to temporarily block access to the site, as well as send the data for investigation to the tax office.

The Federal Tax Service does not independently check user accounts because it does not have full access. Tax officials can only request reporting for a specific person.

Banks and payment systems also monitor all transactions and, if fraud or large turnover of funds is suspected, they independently report the incident to the Federal Tax Service. An important point is that if a person’s official income allows him to operate large sums, then questions will not be brought against him.

Thus, in order not to fall under the watchful eyes of banks and tax officials, it is recommended not to exceed the maximum transaction limit per month, and, if necessary, use different services. This applies to those categories of citizens whose income is significantly lower than the amounts cashed out.

How to withdraw bitcoins in rubles to Yandex money?

It has also been possible to withdraw bitcoins to Yandex Money for a long time. I have been using Yandex for a very long time. Again we go to bestchange.info and now select Yandex-Money as a purchase:

We use the calculator for preliminary calculations, select X-Pay again:

Like last time, we receive the bitcoin address data from which the system will transfer money to your Yandex wallet:

Insert the Bitcoin address and amount. And now let’s see what the final amount is when withdrawing from blockchain.info:

You can transfer further from Yandex to Sberbank; an additional transfer fee of 1% will be charged.