Swan Bitcoin, a leading bitcoin exchange platform, has recently made an announcement regarding its decision to terminate accounts of users who directly interact with mixing services. The company has cited pressure from banking institutions as the reason behind this move, following the proposal presented by the Financial Crimes Enforcement Network (FinCEN) to increase bookkeeping requirements for such transactions.
Swan Bitcoin Introduces Restrictive Policies
Swan Bitcoin, a California-based Bitcoin services platform, has informed its customers about a change in its policies regarding mixing services. In a letter sent to its users, the company stated that moving forward, accounts that engage with transactions linked to coin mixing services will be at risk of termination.
The company explained that this change was prompted by the pressures exerted by its banking partners due to the introduction of a proposed rule by the Financial Crimes Enforcement Network (FinCEN). This rule aims to establish new responsibilities for institutions that facilitate transactions involving mixing services.
Yan Pritzker, co-founder and CTO of Swan Bitcoin, addressed the issue by stating that while the company supports coin mixing as a privacy service, onboarding customers with fiat requires connecting to qualified custodians and banks. Instead of conducting investigative work, the company has chosen to mitigate risks by implementing these new policies.
Pritzker stated:
"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?"
A Community Outrage
Despite Pritzker's explanation, some members of the crypto community have strongly criticized Swan's new policies, claiming that they contradict the exchange's ethos.
Samourai Wallet, a wallet that offers mixing services, heavily condemned Swan Bitcoin's actions, accusing the exchange of acting as an enforcer for a proposal that is not even law yet. They urged users to close their accounts or provoke the exchange into terminating them by interacting with mixing services.
Samourai Wallet emphasized:
"It's still a proposal, you lame f*cking p*ssies. Instead of mounting a defense, you preemptively comply? Absolute losers."
Vlad Costea, host of the Bitcoin Takeover podcast, also criticized Swan Bitcoin's actions, describing them as "dystopian" and an attempt to establish an anti-Bitcoin compliance culture. He concluded by saying, "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 new account termination policies? Share your opinions in the comments section below.
Frequently Asked Questions
How much should precious metals make up your portfolio?
This question can only be answered if we first know what precious metals are. Precious Metals are elements that have a very high relative value to other commodities. This makes them highly valuable for both investment and trading. Gold is today the most popular precious metal.
There are however many other types, including silver, and platinum. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
All precious metals prices tend to rise with the overall market. They do not always move in the same direction. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower interest rates, making bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. Because they are rare, they become more pricey and lose value.
To maximize your profits when investing in precious metals, diversify across different precious metals. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
How much of your IRA should include precious metals?
You should remember that precious metals are not only for the wealthy. It doesn't matter how rich you are to invest in precious metals. In fact, there are many ways to make money from gold and silver investments without spending much money.
You may consider buying physical coins such as bullion bars or rounds. It is possible to also purchase shares in companies that make precious metals. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You'll still get the benefit of precious metals no matter which country you live in. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices rise with time, which is a different to traditional investments. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
Should You Invest Gold in Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. You can invest in both options if you aren't sure which option is best for you.
Gold offers potential returns and is therefore a safe investment. Retirees will find it an attractive investment.
While many investments promise fixed returns, gold is subject to fluctuations. As a result, its value changes over time.
This doesn't mean that you should not invest in gold. This just means you need to account for fluctuations in your overall portfolio.
Another benefit to gold? It's a tangible asset. Gold is much easier to store than bonds and stocks. It can also be transported.
You can always access your gold as long as it is kept safe. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
A portion of your savings can be invested in something that doesn't go down in value. Gold rises in the face of a falling stock market.
Gold investment has another advantage: You can sell it anytime. You can easily liquidate your investment, just as with stocks. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
You shouldn't buy too little at once. Begin by buying a few grams. Then add more as needed.
Remember, the goal here isn't to get rich quickly. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
Which precious metal is best to invest in?
Answering this question will depend on your willingness to take some risk and the return you seek. Although gold has been considered a safe investment, it is not always the most lucrative. For example, if your goal is to make quick money, gold may not suit you. If you have the patience to wait, then you might consider investing in silver.
If you don’t want to be rich fast, gold might be the right choice. If you want to invest in long-term, steady returns, silver is a better choice.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
External Links
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
cftc.gov
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
How To
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. It is best to start saving for retirement as soon you can (typically at age 50). It is important to invest enough money each and every year to ensure you get adequate growth.
You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles allow you to make contributions without paying taxes on earnings until they are withdrawn from the account. These savings vehicles are great for those who don't have access or can't get employer matching funds.
Savings should be done consistently and regularly over time. You may not be eligible for any tax benefits if your contribution is less than the maximum allowed.
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By: Sergio Goschenko
Title: Swan Bitcoin Implements New Policies to Terminate Accounts Interacting 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
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