Swan Bitcoin's Decision to Terminate Accounts
Swan Bitcoin, a prominent bitcoin exchange platform, recently made an important announcement regarding its policies. The company has decided to terminate the accounts of users who directly interact with bitcoin mixing services. This decision comes as a response to the pressure from banking institutions, following a proposal made by the Financial Crimes Enforcement Network (FinCEN) to increase the bookkeeping requirements for these types of transactions.
Swan Bitcoin's Updated Policies on Mixing Services
In a letter addressed to its customers, Swan Bitcoin, a California-based bitcoin services platform, informed them about the implementation of new policies concerning mixing services. The company stated that accounts which engage directly with transactions involving coin mixing services will now face the risk of termination.
The reasoning behind this change lies in the pressure exerted by Swan Bitcoin's banking partners, who are concerned about the introduction of a proposed rule by FinCEN. This rule aims to establish additional responsibilities for institutions that facilitate transactions involving mixing services.
Swan Bitcoin's Perspective on the Matter
Yan Pritzker, co-founder and CTO of Swan Bitcoin, expressed the company's stance on the issue. While Swan Bitcoin acknowledges the importance of coin mixing as a privacy service, it faces limitations when onboarding customers with fiat due to the need to connect with qualified custodians and banks. As a result, the company prefers to avoid potential risks by implementing these new policies.
Pritzker further explained:
"Game theoretically, this behavior is expected and obvious. Why should a bank have to do extra work to prove innocence when the government has been telling them for years that they don’t want to see mixing?"
Despite Pritzker's statements, some members of the crypto community have strongly criticized Swan Bitcoin's new policies, arguing that they contradict the ethos of the exchange.
Samourai Wallet, a popular wallet known for its mixing services, heavily condemned Swan Bitcoin's actions. They accused the exchange of acting like an enforcer for a proposal that has not yet become law and encouraged users to either close their accounts or force the exchange to terminate them by engaging with mixing services.
Samourai Wallet emphasized:
"It's still a proposal, you lame fucking pussies. Instead of mounting a defense, you preemptively comply? Absolute losers."
Vlad Costea, the host of the Bitcoin Takeover podcast, also voiced his criticism towards Swan Bitcoin's actions. He described them as "dystopian" and believed that they sought to establish an anti-Bitcoin compliance culture. As a European, Costea expressed that if he had access to Swan Bitcoin, he would immediately stop using their service.
What are your thoughts on Swan Bitcoin's new account termination policies? Share your opinion in the comments section below.
Frequently Asked Questions
How to Open a Precious Metal IRA
A self-directed Roth Individual Retirement Account is the best way to open a IRA for precious metals.
This type of account is better than other types of IRAs because you don't have to pay any taxes on the interest you earn from your investments until you withdraw them.
It is attractive for people who want to save money, but need a tax break.
You don't have to invest in silver or gold. You can invest in whatever you like, provided it conforms to IRS guidelines.
Many people think only of silver and gold when they hear the word “precious metallic” but there are other types.
Examples include platinum, palladium and rhodium.
You can invest in precious and base metals in many different ways. The two most popular options include buying bullion coins and bars and purchasing shares of mining companies.
Bullion Coins and Bars
One of the best ways to invest in precious metals is by buying bullion bars and coins. Bullion refers to physical ounces (or grams) of gold and/or silver.
Bullion bars and coins can be purchased to receive actual pieces.
While you might not feel any change when you buy bullion coin bars or coins from a retailer, you will experience some benefits over time.
You will receive a tangible piece if history, for example. Each coin and bar has its own unique story behind it.
The face value of a coin will often be lower than its nominal worth. In 1986, the American Eagle Silver Coin was $1.00 per ounce. Today, however, the price of an American eagle is closer to $40.00 per ounce.
Bullion's price has risen dramatically since its inception, so many investors would rather invest in bullion coins than futures.
A great way to get precious metals is by investing in shares in mining companies. You are investing in the ability of mining companies to produce gold or silver.
You will then be entitled to dividends which are based upon the company’s profit. These dividends will then go towards paying out shareholders.
The company's growth potential will also be of benefit to you. The demand for the product will also cause an increase in share prices.
These stocks can fluctuate in value so it is important to diversify your portfolio. This means you can spread your risk to multiple companies.
It's important to remember, however, that mining companies can still be subject to financial losses, just as any other stock market investment.
Your ownership stake could become worthless if the price of gold falls significantly.
The Bottom Line
Precious Metals such as gold or silver offer a safe haven in times of economic uncertainty.
Silver and gold, however, can experience wild swings in their prices. A precious metals IRA account is a good option for long-term investment.
This allows you to benefit from tax advantages and physical assets.
Can you hold precious metals in an IRA?
The answer to this question depends on whether the IRA owner wants to diversify his holdings into gold and silver or keep them for safekeeping.
Two options are available for him if diversification is something he desires. He could either buy bars of physical gold and/or sterling from a dealer or simply sell these items back at the end. But, what if he doesn't want to sell his precious metal investments? He could keep the precious metals as long as he wants to.
How does an IRA with gold or silver work?
You can invest in precious metals like gold and silver without having to pay taxes. People who want to diversify portfolios will find them attractive investments.
If you are over 59 1/2, income tax is not due on the interest earned from these accounts. The appreciation of the account's value does not trigger capital gains tax. The maximum amount that you can invest in this type of account is $10,000. The minimum amount you can put into this account is $10,000. If you're under the age of 59 1/2, investing is not allowed. Maximum annual contribution: $5,500
If you die before retirement, your beneficiaries may receive less than the full amount in your account. Your estate should contain sufficient assets to cover your account's remaining balance after paying any other expenses.
Some banks offer a gold or silver IRA option, while others require that you open a regular brokerage account where you can buy certificates or shares.
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
How to Determine if a Gold IRA is Right for You
Individual Retirement Accounts (IRA) are the most popular type. IRAs may be obtained from financial planners or banks as well as mutual funds and banks. The IRS allows individuals to contribute up to $5,000 annually without tax consequences. This amount can go into any IRA. You can only put a certain amount into an IRA, but there are restrictions. A Roth IRA is only available to those who are at least 59 1/2. If you're under 50, you must wait until you reach age 70 1/2 before making contributions. Individuals who work for their employer could be eligible for matching employer contributions.
There are two main types of IRAs: Traditional and Roth. A traditional IRA lets you invest in stocks, bonds, real estate, and other investments, while a Roth IRA lets you invest only in after-tax dollars. Contributions to a Roth IRA aren't taxed when they come out, but withdrawals taken from a Roth IRA are taxed once again. Some people combine both of these accounts. Each type is different. There are pros and con's to each. So what should you consider before deciding which type of IRA works best for you? These are the three main things you need to remember:
Traditional IRA Pros:
- The company can choose from different contribution options
- Employer match possible
- More than $5,000 in savings per person
- Tax-deferred tax growth until withdrawal
- Income level may be a factor in some restrictions
- Maximum contribution limit for married couples is $5500 annually ($6,500 jointly).
- Minimum investment is $1,000
- After age 70 1/2 you are required to begin mandatory distributions
- For an IRA to be opened, you must have at least five-years-old
- You cannot transfer assets between IRAs
Roth IRA pros
- No taxes owed when contributing
- Earnings increase without tax
- No required minimum distributions
- Stocks, bonds, and mutual fund investments are the only options.
- There is no maximum amount limit
- No limitations on transferring assets between IRAs
- To open an IRA, you must be 55 years old or older
When opening a new IRA it's important to realize that not all companies offer identical IRAs. Some companies provide the choice of a Roth IRA as well as a traditional IRA. Others allow you to combine them. You should also note that different types of IRAs may have different requirements. Roth IRAs do not require a minimum amount of investment, while traditional IRAs are limited to a maximum investment of $1,000.
The bottom line
When choosing an IRA, the critical factor is whether you want to pay taxes now or later. If you are retiring within ten year, a traditional IRA could be the right option. Otherwise, a Roth IRA could be a better fit for you. In either case, it's a smart idea to speak with a professional about your retirement plans. It's important to have someone who is knowledgeable about the market and can suggest the best options for you.
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