Originally Posted by halfpint

There are sites where u can exchange bitcoins for other currencys other than USD and tbh how will they know where the money is comming from if the bitcoin transaction itself is anonymous.

Lets say I want to sell my bitcoin to somebody for $$$ I transfer that bitcoin into his bitcoin address he send me money via paypal or some other online payment.

How are they going to trace the transaction of the bitcoin ? The whole idea of bitcoins was to keep it out of government hands