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Can Bitcoins be exchanged for professionally licensed services by persons who are NOT licensed? For those folks, receiving cash would normally be a Blackmarket Racket since only licensees, the governments approved vendors, may partake in those business activities.

Persons can dispense all sorts of professional services as long as they aren’t for "business" or "pay". Good hearted family, friends, neighbors and colleagues do it all the time. It’s a basic freedom we as Americans understand, to not be controlled like individuals were in the USSR etc.

Hypothetically, if neighborA were to dispense Legal Advice for PAY, yet NOT be a licensed attorney, then neighborA would be involved in an illegal operation according to political regulations. NeighborA, however, could in fact give that same advice, and on any other matter they like...taxes, medical, legal etc., as long as they DON’T do it for business.

So, can these folks legally receive bitcoins? Or, is that considered Pay and Business?

Murch
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user12711
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1 Answers1

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Persons can dispense all sorts of professional services as long as they aren't for "business" or "pay"

In some places, yes. In other places, no. Since you didn't specify your jurisdiction, I will guess that you live in Alabama. Alabama Code - Section 34-3-6 (b) defines the practice of law this way:

Whoever,

(1) In a representative capacity appears as an advocate or draws papers, pleadings or documents, or performs any act in connection with proceedings pending or prospective before a court or a body, board, committee, commission or officer constituted by law or having authority to take evidence in or settle or determine controversies in the exercise of the judicial power of the state or any subdivision thereof; or
(2) For a consideration, reward or pecuniary benefit, present or anticipated, direct or indirect, advises or counsels another as to secular law, [...] or
[2 lines snipped.]

For example, if you help your neighbor write up their will, and you weren't a licensed lawyer, you could potentially be in violation of this section, even if you never received any money.

Hypothetically, if neighborA were to dispense Legal Advice for PAY, yet NOT be a licensed attorney, then they'd be involved in an illegal operation according to political regulations. [...] can these folks legally receive bitcoins? Or, is that considered Pay and Business?

Well, the IRS thinks that Bitcoins are money. Various state-level tax agencies think that Bitcoins are money. I'd guess that Bitcoins received for legal advice would probably be considered 'pay.'

As for dispensing medical advice...

Van Thiel claimed he performed abortions, removed sebaceous cysts, treated sexually transmitted and life-threatening diseases and provided ozone treatments at “unbeatable prices” in exchange for Bitcoins, gold and silver and firearms.

There has been someone who was prosecuted for unlicensed practice of medicine in exchange for Bitcoin.

Community
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Nick ODell
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    In most jurisdictions, the test would be what would happen if you used a commodity instead of Bitcoins. So if you give me some professional service in exchange for Bitcoins, it's probably going to get the same legal treatment as if you gave me some professional service in exchange for gasoline. – David Schwartz Dec 31 '15 at 10:20
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    @DavidSchwartz That doesn't change anything, though. Look at Alabama's law: (2) For a consideration, reward or pecuniary benefit, present or anticipated, direct or indirect, That's definitely broad enough to cover being paid in gasoline. – Nick ODell Dec 31 '15 at 17:39
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    It does change something, it changes this from a question that only someone who understand Bitcoin can answer to one that someone who knows nothing about Bitcoin can answer. It doesn't change the answer though. :) – David Schwartz Jan 02 '16 at 19:15