The Australian government's assistant treasurer, Stephen Jones, has expressed his concern regarding the Australian Securities and Investments Commission's (ASIC) failure to issue a consumer warning against the crypto investment scheme, Hyperverse. Jones plans to investigate why ASIC did not follow the lead of regulators in other countries such as the UK, New Zealand, Canada, Germany, and Hungary.
Failure to Issue Consumer Warning
In a recent media investigation, it was discovered that the CEO of Hyperverse, Steven Reece Lewis, was a fictitious person. The University of Leeds and the University of Cambridge have both confirmed that they do not have any records of Lewis, raising questions about the legitimacy of the scheme.
Hyperverse's promotional material falsely claimed that Lewis was a graduate of these prestigious institutions and also featured endorsements from celebrities like Steve Wozniak and Chuck Norris. These deceptive tactics played a significant role in defrauding thousands of investors.
The Assistant Treasurer's Concerns
Assistant Treasurer Stephen Jones described the scheme employed by Hyperverse as a method of convincing innocent people to invest their money in a potentially non-existent product. The only source of income for the scheme was money from new investors. Jones expressed his confusion as to why ASIC did not issue a warning to potential investors.
Furthermore, Jones suggested that schemes like Hyperverse exhibit characteristics of scams, indicating that investors should have been warned about the risks involved.
Regulator Warnings and Investor Protection
The question arises of whether issuing warnings can help investors avoid falling victim to crypto scams. Regulators in various countries have taken proactive measures to protect investors by issuing consumer warnings and sharing information about fraudulent schemes. However, the effectiveness of these warnings depends on investors' awareness and their ability to differentiate between legitimate investment opportunities and scams.
It is crucial for regulators to stay vigilant and collaborate with international counterparts to identify and take action against fraudulent schemes in the crypto industry. By doing so, they can help protect unsuspecting investors and maintain the integrity of the financial markets.
What are your thoughts on the role of regulator warnings in preventing crypto scams? Share your opinion in the comments below.
Frequently Asked Questions
How do I choose the right IRA for me?
Understanding the type of account you have is the first step towards finding an IRA that suits your needs. This is whether you want a Roth IRA, a traditional IRA, or both. You should also know how much money your have available to invest.
The next step is to choose the best provider for you. While some providers offer both accounts, others specialize in only one.
The fees associated with each option should be considered. There are many fees that vary between providers. They may include annual maintenance fees or other charges. Some providers charge a monthly cost based on how many shares you own. Others only charge once per quarter.
How does an IRA for gold and/or silver work?
An IRA that is gold or silver allows you the opportunity to invest in precious metals without paying tax on any gains. They make a great investment choice for those looking to diversify.
You do not have to pay income tax on interest earned from these accounts if you are over 59 1/2. On any appreciation in value of the account, you don’t have to pay capital gain tax. The maximum amount that you can invest in this type of account is $10,000. Minimum amount allowed is $10,000 If you’re under the age of 59 1/2, investing is not allowed. The maximum annual contribution is $5,500.
If you die before retirement, your beneficiaries may receive less than the full amount in your account. After all expenses have been paid, your estate must contain enough assets to cover any remaining balance in your account.
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.
Is a gold IRA worth interest?
It all depends on how much you invest in it. If you have $100,000 then yes. If your assets are less than $100,000, it is no.
The amount you invest in an IRA affects its ability to earn interest.
If you invest more than $100,000 each year in retirement savings, you may want to open a regular brokerage instead.
Although you’ll likely earn higher interest, there are greater risks. You don’t want your entire portfolio to go bankrupt if the stock markets crash.
An IRA is better if you have $100,000 to invest per year. At least until there is a rebound in the market.
Statistics
- The IRS also allows American Eagle coins, even though they do not meet gold’s 99.5% purity standard. (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)
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
External Links
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
wsj.com
investopedia.com
regalassets.com
How To
Precious Metals Approved By the IRA
Whether you’re looking to save for retirement or invest for your next business venture, IRA-approved precious metals make great investments. Various options can help diversify your portfolio and protect against inflation from gold bars to silver coins.
Precious Metal Investment Products come in two main formats. Because they are tangible, physical bullion products like bars and coins can be considered assets. ETFs, on the other hand are financial instruments that track price movements of an underlying asset such as gold. ETFs trade like stocks on stock exchanges, which means investors can buy shares of them directly from the company issuing them.
There are various types of precious metals available for purchase. Silver and gold are frequently used for ornaments and jewelry making, while palladium and platinum are more often associated with luxury items. Palladium has a tendency to retain its value longer than platinum making it an ideal choice for industrial uses. Silver is also useful for industrial purposes, although it is usually preferred for decorative applications.
Due to the expense of mining and refining natural materials, physical bullion is more expensive. However, they are generally safer than paper currencies and provide buyers with greater security. For example, consumers can lose confidence in the currency or look for alternative currencies when the U.S. dollars loses its purchasing power. Physical bullion products on the other side do not depend upon trust between countries and companies. Instead, they are backed up by central banks and governments giving customers peace-of-mind.
The supply and demand for gold affect the price of gold. The price of gold will rise if there is more demand. Conversely, a decrease in supply can cause the price to fall. This dynamic allows investors to profit when the gold price fluctuates. Investors who own physical bullion products benefit from these fluctuations because they receive a higher return on their money.
Precious metals are not affected by interest rate changes or economic recessions, unlike traditional investments. As long demand is strong, gold prices will continue to climb. Because of this, precious metals are considered safe havens during times of uncertainty.
These precious metals are the most in demand:
- Gold – This is the oldest kind of precious metal. It is often called “yellow gold”. While gold is a well-known element, it is very rare to find underground. Most of the world’s remaining gold reserves are found in South Africa.
- Silver – After gold, silver is the second most precious precious metal. Silver is also mined from natural resources, just like gold. However, silver is more commonly extracted from ore than from rock formations. Because of its durability and malleability, as well as resistance to tarnishing, silver is widely used in commerce and industry. The United States makes more than 98% all of the global silver production.
- Platinum – Platinum ranks third in the most valuable precious metals. It is used in many industries, such as fuel cells, catalytic converters and high-end medical equipment. In dentistry, platinum is used to make bridges, crowns, and fillings.
- Palladium – Palladium is the fourth most valuable precious metal. Its popularity is growing rapidly among manufacturers because of its strength and stability. You can also use palladium in electronics, automotives, and military technology.
- Rhodium – Rhodium has been ranked fifth among precious metals. Although rhodium is extremely rare, it is highly sought after because of its use in automobile catalysts.
- Ruthenium – Ruthenium ranks sixth in the list of most valuable precious metals. Although there is a limited supply of palladium and platinum, ruthenium can be found in abundance. It is used to make steel and engines for aircraft, as well chemical manufacturing.
- Iridium – Iridium ranks seventh in the list of most valuable precious metals. Iridium plays an important role in satellite technology. It is used for the construction of satellites with orbital capabilities that transmit television signals and other communications.
- Osmium – Osmium is the eighth most valuable precious metal. Osmium is commonly used in nuclear reactors because of its ability to withstand extreme temperatures. It’s also used in jewelry, medicine and cutting tools.
- Rhenium – Rhenium has been ranked as the ninth most valuable precious metallic. Rhenium is used for refining oil, gas, semiconductors, rocketry, and other purposes.
- Iodine: Iodine, the tenth highest-valued precious metal, is also known as Iodine. Iodine is used for photography, radiography and pharmaceuticals.
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By: Terence Zimwara
Title: Australian Government Official Questions ASIC’s Failure to Warn Investors about Hyperverse Scam
Sourced From: news.bitcoin.com/australian-government-official-to-question-regulator-over-its-failure-to-warn-crypto-investors/
Published Date: Wed, 10 Jan 2024 11:00:18 +0000
