Can H-1B Visa Holders Buy and Sell Cryptocurrency?

Yes, my coworkers who are on H-1B visas are trading cryptocurrencies. This type of activity does not require a specific visa status. However, the legality and ethicality of engaging in cryptocurrency trading with an H-1B visa can be complex, especially when it comes to the line between passive income and full-time business activities. This article will help clarify the situation and provide guidance on how to navigate the legal framework surrounding these activities.

Understanding Passive Income Activities

Passive income is income earned without active involvement in the process of earning it. For example, you can earn passive income from stocks, bonds, or buying and selling anything, as long as it is not a business. Actually, earning money from rental units in the USA or buying a business qualifies as passive income, provided that someone else with a valid visa or citizenship handles the operations.

Purchasing Cryptocurrencies as an H-1B Worker: You can buy cryptocurrencies as an H-1B worker. However, once you start selling cryptocurrencies without delegating this task to someone else, such as a US citizen or lawful permanent resident, and these sales start generating significant income, it begins to look like a business venture.

Engaging in Business Activities

Engaging in cryptocurrency trading as an H-1B worker would be considered a business activity, which falls outside of your authorized work under the H-1B visa. The immigration authorities might consider it a violation of your visa status. To avoid this, it's best to delegate the selling of cryptocurrencies to someone else while you remain a passive investor. It is crucial to consult an experienced immigration attorney for further guidance on this matter.

Consult an Immigration Attorney

A fiduciary opinion from an experienced immigration attorney is essential to ensure that any passive income activities comply with the rules set by the United States Citizenship and Immigration Services (USCIS). They can provide you with the necessary legal advice to ensure that your activities do not jeopardize your visa status.

Case Studies and Examples

Case Study 1: Trading in Shares – Cryptocurrency trading can be considered passive income, similar to trading in shares or other capital assets. However, it is always advisable to consult with a legal expert to confirm the stance on this specific activity.

Case Study 2: Rental Income – You can make money from bitcoin or other cryptocurrencies, just like you can earn money from investing in stocks. The key is to not treat it as a full-time job. If you decide to quit your full-time job and dedicate yourself to trading cryptocurrencies full-time, your H-1B visa may no longer be valid. The same applies to stocks and real estate.

The Intent Behind the H-1B Visa

The H-1B visa is designed to provide employers with foreign workers who have skills that are difficult to find in the U.S. As long as you are providing the skills for which you were hired, and not engaging in activities that could harm others, the immigration authorities do not typically interfere with your passive income-generating activities.

Conclusion

Can H-1B visa holders buy and sell cryptocurrencies? Yes, but it is important to distinguish between passive income and full-time business activities. To ensure compliance with visa regulations, it is crucial to delegate trading activities to someone with a valid visa status if significant income is involved. Consulting with an experienced immigration attorney is highly recommended to navigate this complex legal landscape.