If someone were to sell bitcoins on localbitcoins.com in exchange for paypal my cash cards, which were then deposited into paypal. Is that legal as long as any taxable gains received in the transaction are paid? If the amount is under $500 per day and $4000 per month would there be any requirement to know the customer or comply with anti-money laundering laws?
The legality of your transaction depends upon your locality and if you could do a little research about that then you will understand whether you are doing something illegal or not.Every country has different rules and regulations regarding taxes so be aware of those while doing anything so that you wont get into trouble.