The Hong Kong division of Bitget, a Singapore-based cryptocurrency exchange, has announced that it will no longer be seeking a trading license in the region. Speculation suggests that this decision may be connected to Bitget's rumored acquisition of OSL, a licensed Hong Kong exchange.
No New Users Accepted
Bitget's subsidiary, Bitgetx, revealed on November 13th that it has decided to drop its pursuit of a Virtual Asset Trading Platform (VATP) license in Hong Kong. As a result, Bitgetx's Hong Kong website, www.Bitgetx.hk, will cease operations and permanently exit the Hong Kong market on December 13th.
The crypto platform has advised users in the region to withdraw their assets before this date. Failure to do so will result in permanent loss of access to these assets once the exchange ceases operations. Additionally, Bitgetx will not permit any trading of assets and will not accept new users leading up to the deadline day.
"We apologize for any inconvenience and challenges this decision may cause. Our priority is to ensure a smooth and orderly offboarding process for all our users. Our customer support team is available to assist with any questions or concerns regarding the closure and the transfer of your assets. We appreciate your support and understanding during this period of change," stated the crypto exchange.
Possible Connection to OSL Acquisition
Colin Wu, a well-known Asian blockchain and crypto journalist, suggested on X (formerly Twitter) that Bitgetx's decision to forgo the VATP license could be related to Bitget's rumored acquisition of OSL, a licensed Hong Kong exchange.
Although OSL has not officially confirmed the acquisition, it did announce the suspension of trading its shares on the Hong Kong stock exchange on the morning of November 13th. The halt in trading was attributed to "a notifiable transaction which constitutes inside information of the company," according to OSL.
What are your thoughts on this story? Let us know in the comments section below.
Frequently Asked Questions
What are the pros and disadvantages of a gold IRA
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. However, there are also disadvantages to this type of investment.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5%-2.0% per year. Others charge management fees that range from $10 to $50 per month.
Insurance is necessary if you wish to keep your money safe from the banks. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers limit the amount of gold that you are allowed to own. Others let you pick your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Physical gold is more costly than gold futures. Futures contracts, however, allow for greater flexibility in buying gold. You can set up futures contracts with a fixed expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy does NOT include theft protection and loss due to fire or flood. However, it does cover damage caused by natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
Additional to your insurance, you will need to consider how much it costs to store your gold. Storage costs are not covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.
A qualified custodian is required to help you open a Gold IRA. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians cannot sell your assets. Instead, they must hold them as long as you request.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. You should also specify how much you want to invest each month.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. The company will review your application and send you a confirmation letter.
Consider consulting a financial advisor when opening a golden IRA. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
Who holds the gold in a gold IRA?
The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
Consult a financial advisor or accountant to determine your options.
How much are gold IRA fees?
An Individual Retirement Account (IRA) fee is $6 per month. This includes the account maintenance fees and any investment costs associated with your chosen investments.
To diversify your portfolio you might need to pay additional charges. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Many providers also charge annual management fees. These fees range from 0% to 1%. The average rate is.25% per year. These rates can often be waived if a broker, such as TD Ameritrade, is involved.
How do I open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form must be submitted within 60 days of the account opening. Once this has been completed, you can begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS states that you must be at least 18 and have earned income. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. You must also contribute regularly. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. However, you can't purchase physical bullion. This means you can't trade shares of stock and bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option is available from some IRA providers.
There are two main drawbacks to investing through an IRA in precious metallics. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. Second, they are not able to generate dividends as stocks and bonds. You'll lose your money over time, rather than making it.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Legal – WSJ
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads, Example and Risk Metrics
bbb.org
How To
Investing in gold vs. investing in stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. This is because many people believe gold is no longer financially profitable. This belief is due to the fact that many people see gold prices dropping because of the global economy. They fear that investing in gold will result in a loss of money. There are many benefits to investing in gold. Below we'll look at some of them.
Gold is one of the oldest forms of currency known to man. There are thousands of records that show gold was used over the years. People around the world have used it as a store of value. As a means of payment, South Africa and many other countries still rely on it.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don’t know the current market rate for gold bullion, you can always consult a local jeweler to get their opinion.
It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. The price of gold may have fallen, but the production costs haven’t.
It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. It is sensible to avoid buying gold if you are only looking to cover the wedding rings. This is not a wise decision if you're looking to invest in long-term assets. You can profit if you sell your gold at a higher price than you bought it.
We hope you have gained a better understanding about gold as an investment tool. Before making any investment decisions, we strongly advise that you thoroughly research all options. Only after doing so can you make an informed decision.
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By: Terence Zimwara
Title: Bitget's Hong Kong Division Drops Pursuit of Trading License
Sourced From: news.bitcoin.com/bitget-subsidiary-drops-hong-kong-license-pursuit-amidst-osl-acquisition-rumors/
Published Date: Thu, 16 Nov 2023 08:30:29 +0000
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