I wonder how I am supposed to sell bitcoins on an exchange. I have been considering several and have gone through the KYC/AML process for three exchanges. The problem is once I sell my coins they might ask me to prove where I got them from. Keep in mind I am not intending to withdraw the FIAT, I just want to sell high and rebuy lower, and withdraw the coins.
The problem with proving the source of my coins is, how the hell do I do it? I bought them on MtGox and they can't ask MtGox for verification. Even if they did, the coins have gone through several addresses over the years. I can't even trace it back to the MtGox purchase since they went through other exchanges (and got mixed).
So what is one supposed to do here?
I don't know what your talking about your story experience, but the only things I know when I'm selling my bitcoin in yobit exchange platform I do trade it in dollar usd.
The question is being you going to get taxed on it, I mean for some people and some countries you are not allowed to exchange any foreign currency, and that includes bitcoin, and receiving money from sources that are not stated and for things that are not real is illegal, this is the current problem of bitcoin that it is not stated in a law directly, because it is not considered real money.
That is for the countries which doesn't consider bitcoin as a legal currency. However, in mamy countries, there are bitcoin exchangers than can be used to buy and sell bitcoin using fiat money. If a country can have this exchanger, then bitcoin would be consider as legal currency for that certain country.