Does anyone know how this works in Europe? I've been cashing out a couple of bitcoins now and then and til now no one has said a word about it. Should I tell the people responsible for taxes that I am cashing out bitcoins?
Most countries treat gains made from Bitcoin as capital gains. The rules depend where you live. Likely and technically, you should be reporting gains. However, some places like the UK, for instance, have a personal allowance where the first £10k gains are ignored.