in that manner we can also get the benefit of local bitcoins in local bitcoins we can do trade with any person in our country he will send us the money and we will send him the bitcoins so the government will not know that we are selling our bitcoins.
Purely hypothetical scenario that would never happen to someone like you or me:
1 ) You sell your Bitcoins to someone on Localbitcoins.
2 ) The person you sold the Bitcoins to uses the Bitcoins to buy illegal drugs
3 ) The government arrests this person who used the Bitcoins to buy illegal drugs
4 ) The government ask this person "where did you get the Bitcoins"
5 ) Arrested persons says you sold them to him
6 ) Said government then investigates you, your wife, you family, your business for 18 months. They put a tracking device you your car. They get all of your phone records and all of your text messages for the last few years (including all deleted texts). They get all of your bank records from every bank you used for the last few years.
7 ) Finally, frustrated by the fact they cannot find any evidence of drugs or anything illegal they arrest you because they cannot find that you did anything wrong stating you must be a very clever criminal to be able to hide your criminal activity so well they could not find it. Since they cannot find any evidence of drugs they use one of their favorite ambiguous charges: "operating a money transmittal business without a license" for selling Bitcoins through localbitcoins.
8 ) They throw you in jail.
9 ) You cry like a baby in the shower in solitary confinement in a Federal prison.
