Swan Bitcoin Implements New Policies to Terminate Accounts Engaging with Bitcoin Mixing Services

Swan Bitcoin's Decision to Terminate Accounts

Swan Bitcoin, a prominent bitcoin exchange platform, recently made an announcement regarding the termination of accounts that directly interact with mixing services. The company cited pressure from banking institutions as the reason behind this decision, following a proposal by the Financial Crimes Enforcement Network (FinCEN) to increase the bookkeeping requirements for such transactions.

Introduction of New Restrictive Policies

Swan Bitcoin, which operates out of California, has introduced new policies with regard to mixing services. In a letter addressed to its customers, the company stated that accounts engaging directly with transactions involving coin mixing services now face the risk of termination.

The company clarified that this change was prompted by the pressure exerted by its banking partners, in response to the proposed rule by FinCEN. The rule aims to establish additional responsibilities for institutions facilitating transactions that incorporate mixing services.

Yan Pritzker's Perspective

Yan Pritzker, co-founder and CTO of Swan Bitcoin, emphasized that while the company supports coin mixing as a privacy service, it cannot onboard customers with fiat without collaborating with qualified custodians and banks. Rather than engaging in investigative work, the company prefers to avoid potential risks altogether.

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?"

Community Backlash

Despite Pritzker's statements, some members of the crypto community have voiced their opposition to Swan's new policies, arguing that they contradict the ethos of the exchange.

Samourai Wallet, a wallet known for its mixing services, strongly criticized Swan Bitcoin's actions, accusing the exchange of enforcing a proposal that has yet to become law. The wallet encouraged users to close their accounts or engage with mixing services to force the exchange to terminate them.

Samourai Wallet expressed their dissatisfaction:

"It's still a proposal you lame f*cking p*ssies. Instead of mounting a defense, you preemptively comply? Absolute losers."

Vlad Costea, the host of the Bitcoin Takeover podcast, also condemned Swan Bitcoin's actions, describing them as "dystopian" and aimed at fostering an anti-Bitcoin compliance culture. He stated, "As a European, I don't have access to Swan. But if I did, I'd stop using the service ASAP."

What are your thoughts on Swan Bitcoin's decision to terminate accounts? Share your opinions in the comments section below.

Frequently Asked Questions

What is the interest rate on a gold IRA?

It all depends upon how much money you invest. If you have $100,000 to spare, then yes. If you have less than $100,000, then no.

The amount of money you put into an IRA determines whether or not it earns interest.

If you have more than $100,000 in retirement savings each year, you might consider opening a regular brokerage accounts.

While you may earn more interest there than elsewhere, you are also exposed to more risky investments. If the stock market crashes, you don’t want all your money to be lost.

A IRA will be more beneficial if you can only contribute $100,000 annually. At least until the market recovers.

Are gold IRAs a good option for investment?

An investment in gold can be made by buying shares of companies that mine it. This is a good way to make money when you invest in gold and other precious metals like silver.

Two drawbacks exist when you own shares directly.

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What are the fees for an IRA that holds gold?

The average annual fee of an individual retirement account is $1,000. However, there are many different types of IRAs, such as traditional, Roth, SEP-IRAs, and SIMPLE IRAs. Each type has their own set of rules. If the earnings are not tax-deferred you could be subject to taxes. The amount of time you intend to keep the money must be considered. If you plan on holding onto your funds for longer, you’ll likely save more money by opening a Traditional IRA rather than a Roth IRA.

A traditional IRA allows you to contribute up to $5,500 per year ($6,500 if you’re 50 or older). The Roth IRA allows unlimited contributions each year. The difference between them? With a traditional IRA, the money can be withdrawn at your retirement without tax. A Roth IRA will entail taxes for any withdrawals.

Which type of IRA can be used to store precious metals?

Employers and financial institutions often offer Individual Retirement Accounts (IRA) as an investment vehicle. You can contribute to an IRA account which grows tax-deferred and can be withdrawn at any time.

You can save taxes and pay them later with an IRA. This means that you can deposit more money into your retirement plan than have to pay taxes on it tomorrow.

An IRA’s beauty is that earnings and contributions grow tax-free up to the time you withdraw them. If you do withdraw the funds earlier than that, you will be subject to penalties.

You can also make additional contributions to your IRA after age 50 without penalty. If you choose to take withdrawals from your IRA during retirement, you’ll owe income taxes and a 10% federal penalty.

Withdrawals that are made prior to the age of 60 1/2 are subjected to a 5% IRS tax penalty. Withdrawals between ages 59 1/2 and 70 1/2 are subject to a 3.4% IRS penalty.

An IRS penalty of 6.2% applies to withdrawals above $10,000 per year.

Are silver and gold IRAs a good idea for you?

If you are looking for an easy way to invest in both gold and silver at once, then this could be an excellent option for you. There are other options as well. Contact us anytime if you have questions about these types investment options. We’re always glad to help!

Can you make money from a gold IRA

It is important to first understand the market in order to be able to invest and secondly to identify what products are currently available.

If you don’t know anything, it is best to wait until you have enough information so that you can trade effectively.

It is important to find a broker who provides the best services for your account type.

You can choose from a variety of accounts, including Roth IRAs or standard IRAs.

A rollover is also an option for those who already own stocks and bonds.

How do you withdraw from an IRA that holds precious metals?

If you have an account with a precious-metal IRA company like Goldco International Inc, you might consider withdrawing your funds. This way, when you decide to sell your metals, they will still be worth much more than if you had left them inside the account.

Here’s how to withdraw your precious metal IRA money.

First, verify that your precious metal IRA allows withdrawals. Some companies permit this, while some don’t.

Second, determine whether you can take advantage of tax-deferred gains by selling your metals. Many IRA providers provide this benefit. Some IRA providers offer this benefit, but others don’t.

To find out if fees apply, thirdly check with your precious-metal IRA provider. There may be an additional charge for withdrawing.

Fourth, it is important to keep track of your precious-metal IRA investments for at most three years after you have sold them. This means that you must wait until January 1st of each year to calculate capital gain on your investment portfolio. You will then need to file Form 8949 which contains instructions on how to calculate the amount of gain that you have realized.

In addition to filing Form 8949, you must also report the sale of your precious metals to the IRS. This step ensures that you pay taxes on all profits earned from your sales.

Consider consulting a trusted attorney or accountant before selling your precious metals. They can help ensure you follow all necessary procedures and avoid costly mistakes.

Statistics

The maximum yearly contribution to an individual’s IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.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)
Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)

External Links

How To

How to Open a Precious Metal IRA

Precious metals remain one of the most highly-valued investment options. Precious metals are a popular investment option because they provide investors with higher returns than traditional bonds and stocks. It is worth your time to research and plan before you invest in precious metals. Here are the basics to help you open your precious metal IRA account.

There are two main types of precious metal accounts: physical precious metals accounts and paper gold and silver certificates (GSCs). Each type has its advantages and disadvantages. GSCs offer easy access and trade, while physical precious metals accounts provide diversification benefits. To learn more about these options, keep reading below.

Physical precious metals accounts consist of coins, bars, and bullion. This option offers diversification benefits but also has some drawbacks. Precious metals can be expensive to store, buy and sell. Moreover, their large size can be difficult to transport them from one location to another.

However, silver and gold certificates made of paper are quite affordable. They can also be traded online and are easily accessible. This makes them an ideal choice for those who don’t desire to invest in precious metallics. They aren’t as diverse as physical counterparts. Additionally, they are backed by government agencies like U.S. Mint and could lose value if inflation rates rise.

When opening a precious metallic IRA, make sure to choose the right account for you and your financial situation. Consider the following:

Your tolerance level
Your preferred asset allocation strategy
How much time are you willing to put in?
Consider whether you will use the funds to trade short-term.
What tax treatment do you prefer?
What precious metal(s), would you like to invest?
How liquid is your portfolio?
Your retirement date
Where you’ll store your precious metals
Your income level
Your current savings rates
Your future goals
Your net worth
Any special circumstances that may affect your decision
Your overall financial picture
Preference between paper and physical assets
Your willingness to take on risks
Your ability to manage losses
Your budget constraints
Your desire to be financially independent
Your investment experience
Your familiarity with precious metals
Your knowledge of precious metals
Your confidence in economy
Your personal preferences

Once you’ve determined which type of precious metal IRA best suits your needs, you can proceed to open an account with a reputable dealer. These companies are often found by word of mouth referrals or online research.

Once you’ve opened your precious metal IRA, you’ll need to determine how much money you want to put into it. There are different minimum deposits for precious metal IRA accounts. Some accounts only require $100, while others may allow you up to $50,000.

As mentioned above, you can decide how much money you want to invest in your precious metal IRA. You might choose to make a larger initial investment if your goal is to build wealth over the long-term. You might prefer a lower initial deposit if you intend to invest smaller amounts every month.

There are many types of investments that can be purchased, as well as precious metals you can use in your IRA. The most popular are:

Bullion bars and rounds of gold, as well as coins
Silver – Rounds, and coins
Platinum – Coins
Palladium – Round and bar forms
Mercury – Round and bar forms

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By: Sergio Goschenko
Title: Swan Bitcoin Implements New Policies to Terminate Accounts Engaging with Bitcoin Mixing Services
Sourced From: news.bitcoin.com/swan-bitcoin-to-terminate-accounts-interacting-with-bitcoin-mixing-services/
Published Date: Tue, 14 Nov 2023 05:30:03 +0000