Quote from: WattBurner on September 10, 2013, 10:00:31 PM

I'm very interested in attempting arbitrage via Coinbase to MtGox.

I'm well aware of MtGox's international bank wire withdrawal backlog. How long are the domestic Japanese banks deposits from Gox taking? I've read a few forum users claim it only takes a few of days, is this true? I have a trusted Japanese friend currently living in the U.S who has a Japanese bank account.

What if......

I buy 50 BTC on Coinbase everyday...

My friend starts a Gox account and Sells my bitcoins on Mtgox...

deposits funds to Japanese domestic bank account...

Japanese friend wires funds to my US bank account, or potentially, my friend's Japanese bank may have a branch in US linking to Japanese domestic account allowing us to withdrawal cash in US.

With the current $10 price spread, we'll make $500 per transaction minus coinbase/Gox/bank fees. Will this work??? Can my friend open a MtGox account using an US ip address or does it need to be a Japanese IP address? What tax liability is there for this kind of activity? How long would the round trip of funds take?

Anyone have anecdotal experience executing a similar process, please share and thanks in advance.

Neglecting regulatory concerns (you and your friend would be acting as money service businesses and money transmitters, which requires registration with both the feds (FinCEN) and your state government), you'll likely have more fees than you expect. Yen withdrawals to Japanese banks are fast, but USD withdrawals are still backlogged, so you will be receiving Yen. You will either need to convert it at the Japanese bank if they allow USD accounts, or just wire it and accept the automatic conversion. Not only will you get a shit exchange rate, they will tack on a 3%ish currency exchange fee in addition to your standard wire transfer fees. Wiring from Japan to US will likely run you between $50-75, which isn't too horrible if your volume is high enough. Tax liability would likely be capital gains on any profits, but I'm not an accountant, so please seek professional advice there.