Crypto currency (IF banned from CA)

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www.bloomberg.com

Anyone Seen Tether’s Billions?

A wild search for the U.S. dollars supposedly backing the stablecoin at the center of the global cryptocurrency trade—and in the crosshairs of U.S. regulators and prosecutors.
www.bloomberg.com www.bloomberg.com

After I returned to the U.S., I obtained a document showing a detailed account of Tether Holdings’ reserves. It said they include billions of dollars of short-term loans to large Chinese companies—something money-market funds avoid. And that was before one of the country’s largest property developers, China Evergrande Group, started to collapse. I also learned that Tether had made loans worth billions of dollars to other crypto companies, with Bitcoin as collateral. One of them is Celsius Network Ltd., a giant quasi-bank for cryptocurrency investors, its founder Alex Mashinsky told me. He said he pays an interest rate of 5% to 6% on loans of about 1 billion Tethers. Tether has denied holding any Evergrande debt, but Hoegner, Tether’s lawyer, declined to say whether Tether had other Chinese commercial paper. He said the vast majority of its commercial paper has high grades from credit ratings firms, and that its secured loans are low-risk, because borrowers have to put up Bitcoin that’s worth more than what they borrow. “All Tether tokens are fully backed, as we have consistently demonstrated,” the company said in a statement posted on its website after the story was published.

Tether’s Chinese investments and crypto-backed loans are potentially significant. If Devasini is taking enough risk to earn even a 1% return on Tether’s entire reserves, that would give him and his partners a $690 million annual profit. But if those loans fail, even a small percentage of them, one Tether would become worth less than $1. Any investors holding Tethers would then have an incentive to redeem them; if others did it first, the money could dry up. The bank run would be on.

The officials who gathered in July at the Treasury Department are discussing regulating Tether like a bank, which would force Devasini to finally show where the money is, or even undermining it by issuing an official U.S. stablecoin. The strange thing is that, at least for now, most participants in the crypto market, including some very large and sophisticated operators, don’t seem to care about any of the risks. Just last month, traders bought $3 billion in new Tethers, presumably sending billions of perfectly good U.S. dollars to the Inspector Gadget co-creator’s Bahamian bank in exchange for digital tokens conjured by the Mighty Ducks guy and run by executives who are targets of a U.S. criminal investigation.

Play safe out there, boys and girls
 
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weird that the pandora papers highlighted corruption by hundreds of the worlds richest and most powerful people evading tax but not a single one of them using crypto!
mainly all dollars and real estate.
meanwhile in other news,a uk govt owned legacy bank in a spot of trouble lol
www.bbc.co.uk

NatWest faces fine over money laundering failings

The state-backed bank pleads guilty to offences and could now be hit with a large penalty.
www.bbc.co.uk
 
Just curious, if you were to make a tidy profit, let's say £20k. What are the chances of this being noticed by anyone that might want to take a chunk of it - someone rhyming with Jeremy Paxman for instance.

What would be the best/safest way of keeping this safe? Purely hypothetically, obviously.
 
heatmeiser said:
Just curious, if you were to make a tidy profit, let's say £20k. What are the chances of this being noticed by anyone that might want to take a chunk of it - someone rhyming with Jeremy Paxman for instance.

What would be the best/safest way of keeping this safe? Purely hypothetically, obviously.
Click to expand...
im not sure if this is place to ask,
the BIG socialists on here (most are probably living at home with their parents) wont be happy seeing posts on tax avoidance.
as you probably know you trigger a taxable event if you convert crypto into fiat,20k (its probably only a few hundred quid depending on your circumstances)might not flag up but the banks are only too eager to grass you up to HMRC.
i would just hold the 20k in bitcoin,its only going up in the long term,if you need fiat for a big purchase for example,borrow off the banks at near 0% interest,they cant give enough of it away!
bank loans arent taxable and you can sell you bitcoin in drips and drabs if you struggle to make the loan repayments.
i wouldnt hold 20k of £ in the bank,its like holding an ice cube in your hand!
this isnt financial advice by the way,its just what i do!
 

heatmeiser said:
Just curious, if you were to make a tidy profit, let's say £20k. What are the chances of this being noticed by anyone that might want to take a chunk of it - someone rhyming with Jeremy Paxman for instance.

What would be the best/safest way of keeping this safe? Purely hypothetically, obviously.
Click to expand...
You get 12.5k without having to pay capital gains tax. As for the other 7.5k - hypothetically, you could use a service like tornado cash to anonymously send ETH to your partner, or someone you trust, they could then cash out the 7.5 under their own CGT allowance.

You could also use p2p to sell your crypto, much harder for the banks/HMRC to sniff out but still possible. With p2p you pay a premium to sell your crypto, but it just appears as a bank transfer between two people.

Otherwise, just pay the tax on the 7.5k and be done with it.

I get what @nikom court is saying, I prefer not to sell my crypto too but taking profits is good, if you need it for a house/car then go for it. Also good luck getting a 0% loan off the banks for 20k they just simply don't exist for 'normal' people unless you have significant assets to use as collateral
 
DuuuncanHadaPigeon said:
You get 12.5k without having to pay capital gains tax. As for the other 7.5k - hypothetically, you could use a service like tornado cash to anonymously send ETH to your partner, or someone you trust, they could then cash out the 7.5 under their own CGT allowance.

You could also use p2p to sell your crypto, much harder for the banks/HMRC to sniff out but still possible. With p2p you pay a premium to sell your crypto, but it just appears as a bank transfer between two people.

Otherwise, just pay the tax on the 7.5k and be done with it.

I get what @nikom court is saying, I prefer not to sell my crypto too but taking profits is good, if you need it for a house/car then go for it. Also good luck getting a 0% loan off the banks for 20k they just simply don't exist for 'normal' people unless you have significant assets to use as collateral
Click to expand...
the last cash loan i got was from sainsburys bank to buy a car,similar amount quoted here at 2.5% apr.
in the same time period my btc has gone up roughly 400%,
all shopping and medium sized purchases (holidays,new boiler etc) go on a 0% credit card.
 

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