Sounds interesting.. I would suspect it would not be a long term opportunity using the methods you describe, but rather a short term fix for an absent service.

As far as problems with the Tax man or the US Gov. I don't see a problem, I transfer from my bank to my Paypal Business account every month. In fact, I use my Paypal Business Mastercard when I buy Gold and Silver because it pays 1.5% cash back.

So I'm sure on that end it would simply appear you are making purchases, which is what you're doing.
On the Exchange end I have no experience...

Good idea though, good luck with it....