Introduction
Two U.S. lawmakers have recently called on the U.S. Department of Justice (DOJ) to investigate Binance and Tether for potential criminal charges. The lawmakers alleged that these two cryptocurrency platforms were used to fund Hamas, a designated terrorist organization. They emphasized the need for the DOJ to evaluate whether Binance and Tether have violated sanctions laws and the Bank Secrecy Act by providing material support to terrorism.
Lawmakers' Request for Investigation
U.S. Senator Cynthia Lummis from Wyoming and U.S. Representative French Hill from Arkansas have jointly sent a letter to U.S. Attorney General Merrick Garland, urging the DOJ to swiftly investigate Binance and Tether. In their letter, they raised concerns about the alleged involvement of these platforms in funding Hamas and their history of allowing illegal activities.
Importance of Crackdown on Bad Actors
Senator Lummis emphasized the importance of federal investigators cracking down on bad actors in the crypto asset space. She highlighted the reports that indicated Hamas had used crypto assets to finance their activities. Senator Lummis made it clear that crypto itself is not the enemy but rather the individuals who engage in illicit finance.
Request for Charging Decision on Binance and Tether
The lawmakers urged the DOJ to reach a charging decision on Binance, taking into account the level of culpability. They also called for the expeditious conclusion of the ongoing investigations into the illicit activities involving Tether. The letter emphasized the need for holding these platforms accountable if they are found to facilitate illicit finance.
Clarification by Blockchain Analytics Firm
Elliptic, a blockchain analytics firm, clarified that there is no evidence supporting the claim that Hamas has received significant crypto donations. They further stated that the data provided has been misinterpreted.
Unregulated Crypto Platforms and Facilitation of Illicit Activities
The letter described Binance as an unregulated crypto platform based in Seychelles and the Cayman Islands, which has been historically linked to illicit activity. The lawmakers highlighted that Binance is reportedly under investigation by the DOJ. They also accused Tether of knowingly facilitating violations of sanctions laws and the Bank Secrecy Act.
Call for Action
The lawmakers concluded their letter by urging the DOJ to carefully evaluate the extent to which Binance and Tether are providing material support to terrorism. They expressed strong support for swift action against these platforms to cut off funding sources for the terrorists targeting Israel.
Public Opinion
What are your thoughts on the lawmakers' request for criminal charges against Binance and Tether? Share your opinions in the comments section below.
Frequently Asked Questions
Can the government steal your gold?
The government cannot take your gold because you own it. It is yours because you worked hard for it. It belongs to you. This rule could be broken by exceptions. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
What does a gold IRA look like?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase physical bullion gold coins at any point in time. To start investing in gold, it doesn't matter if you are retired.
The beauty of owning gold as an IRA is you can hold on to it forever. Your gold holdings won't be subject to taxes when you pass away.
Your heirs will inherit your gold, and not pay capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
First, an individual retirement account will be set up to allow you to open a golden IRA. Once you've done so, you'll be given an IRA custodian. This company acts as a middleman between you and the IRS.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reporting.
Once your gold IRA is established, you can purchase gold bullion coins. The minimum deposit is $1,000. If you make more, however, you will get a higher interest rate.
You'll have to pay taxes if you take your gold out of your IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
Even if your contribution is small, you might not have to pay any taxes. There are exceptions. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
Avoid taking out more that 50% of your total IRA assets each year. A violation of this rule can lead to severe financial consequences.
Can I have a gold ETF in a Roth IRA
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
Traditional IRAs allow for contributions from both employees and employers. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
An Individual Retirement Annuity (IRA) is also available. An IRA allows for you to make regular income payments during your life. Contributions to IRAs do not have to be taxable
How to Open a Precious Metal IRA?
First, decide if an Individual Retirement Account is right for you. You must complete Form 8606 to open an account. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should be filled within 60 calendar days of opening the account. Once this has been completed, you can begin investing. You can also contribute directly to your paycheck via payroll deduction.
If you opt for a Roth IRA, you must complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS states that you must be at least 18 and have earned income. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. Contributions must be made on a regular basis. These rules apply to contributions made directly or through employer sponsorship.
You can use a precious metals IRA to invest in gold, silver, palladium, platinum, rhodium, or even platinum. However, you won't be able purchase physical bullion. This means you won’t be able to trade stocks and bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. This option is available from some IRA providers.
However, there are two significant drawbacks to investing in precious metals via an IRA. They aren't as liquid as bonds or stocks. This makes it harder to sell them when needed. Second, they are not able to generate dividends as stocks and bonds. So, you'll lose money over time rather than gain it.
Can I buy or sell gold from my self-directed IRA
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts can be described as financial instruments that are determined by the gold price. You can speculate on future prices, but not own the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
Is gold buying a good retirement option?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
Physical bullion bar is the best way to invest in precious metals. There are other ways to invest gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you are looking for cash flow from your investment, buying gold stocks will work well.
ETFs allow you to invest in exchange-traded funds. These funds give you exposure, but not actual gold, by investing in gold-related securities. These ETFs usually include stocks of precious metals refiners or gold miners.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
