Connect with us


IRS is Investigating Cryptocurrency ATMs and Kiosks



The Internal Revenue Service (IRS), which is the revenue service wing of the U.S. government, recently announced that it would be launching investigations into cryptocurrency ATMs and kiosks regarding tax evasion matters. In addition, it would also look into whether they were being used to aid in the purchase of controlled substances, money laundering, and other similar crimes.

Cryptocurrency kiosks and ATMs are today a popular method used by crypto enthusiasts to purchase and sell digital assets. According to a recent interview, their uptake in the United States has been on the rise in the past few months, which may explain the concerns raised by the IRS. The IRS is concerned as they become more popular and accessible, more people will start to use them as a means of tax evasion.

Concerns Raised by the IRS

For the IRS, the main issue lies in the fact that any person can walk up to any one of the crypto kiosks or ATMs and receive BTC after depositing hard cash. Naturally, the Internal Revenue Service would want to get to know such users and their intentions with the crypto. The authorities would also investigate where they got the money to purchase digital assets.

Nonetheless, their interest is not only in the users but in the owners as

well. They would like to know the people who have been making money by availing the crypto ATMs and kiosks to the public for use.

According to the IRS:

“The device owners are required to abide by the same know-your-customer, anti-money laundering regulations, and we believe some have varying levels of adherence to those regulations.”

Law Enforcement Agencies

John Fort, the Investigation Chief at the IRS opines many other agencies have raised the same concerns. Fort added that together with his team, they have already reached out to other agencies in the law enforcement sector that would like to have such information.

He further stated that some agencies, together with their allies had already started monitoring the devices to check whether they were being used for illegal activities. Currently, no case has been filed yet. However, Fort was also quick to point out that their inventory has some ongoing cases.

The IRS official stated that there was a possibility that the open cases may or may not be directly linked to various bank accounts. While noting that there is an increase in the use of these devices, he admitted that this was not a simple solution. If not carefully attended to, it could end up forcing people to start using foreign exchanges.

News Source


Tyrone Ross on Why Financial Advisors Are Taking Notice of DeFi



Financial advisor and crypto advocate Tyrone Ross joins The Breakdown for a discussion on financial advisors, DeFi and the most important company in crypto.

One man. Three piping hot takes. In this special interview episode of The Breakdown, financial advisor and crypto advocate

Tyrone Ross shares his thoughts on:

  • Why financial advisors are the key to bringing in the next wave of crypto investors
  • Why DeFi is an even bigger deal than you think – and not just to the hackers and entrepreneurs building on it
  • Why Square’s Cash App – not Binance, not Coinbase, not anyone else – is the most important company in crypto

Check out more episodes of The Breakdown on CoinDesk.

news source

Continue Reading


Crypto Dealer SFOX Adds New Service for Fund Managers to Invest in Digital Assets



San Francisco Open Exchange unveiled Thursday its new “Separately Managed Account Solution” to help investors create their own crypto trading strategies.

The service enables fund managers to manage individual securities in a single account for their clients in the traditional financial services industry. However, the company claimed the new service has not been available to those who invest in digital assets.

According to a blog post from SFOX, the new service will allow fund managers to design and administer personalized crypto trading strategies for their clients.

The company said crypto investors can also use its tax-reporting products to take taxes into consideration when making portfolio management decisions.


service caters to crypto hedge fund managers, traders and service providers as well as traditional asset managers who invest in crypto assets.

In May, the crypto dealer announced a partnership with New York-based M.Y. Safra Bank to provide its traders with deposit accounts backed by the Federal Deposit Insurance Corporation (FDIC).

Founded in 2014, SFOX says it now serves more than 175,000 traders across the world and has processed over $11 billion worth of transactions.

Separately managed accounts as a financial service have been widely used by asset managers who work for institutional investors such as high net worth individuals and mutual funds. It allows people to manage portfolios more efficiently by putting different investments in one account.

news source

Continue Reading


Deribit Takes On New Trading Tools to Capture ‘Exploding’ Options Market



Amid increasing activity within the crypto derivatives market, software maker Trading Technologies (TT) announced Wednesday it would provide trading tools to users of leading crypto exchange, Deribit.

Included in the suite are advanced order types, charting and analytics as well as access to a feature allowing users to create algorithms for bot trading.

TT users eligible to trade on Deribit will be able to access all listed products, including bitcoin (BTC) and ether (ETH) futures, perpetual and options contracts. Dutch-based (for another month) Deribit, founded in 2016, is now the fifth crypto-only exchange that TT supports, alongside BitMEX, CoinFLEX, Coinbase and Bakkt.

TT’s vice president of cryptocurrencies, Michael Unetich, said demand for crypto derivatives was strong in regions such as the U.S., Asia and Europe.

“We hope to provide trading access to the highest volume derivatives exchanges in the world. CME is one leading derivatives venue, while others are located in Asia.” Unetich said.

Trading Technologies creates professional trading software, infrastructure and data solutions for a wide variety of users, including proprietary traders, brokers, money managers, chartered tax advisors (CTAs), hedge funds, commercial hedgers and risk managers. Traditional financial institutions like Goldman Sachs; stock exchanges like the Johannesburg Stock Exchange; and Europe’s largest derivatives exchange Eurex also use the 25-year-old firm’s tools.

Exploding options market

Jehan Chu, co-founder and managing partner of Kenetic, a Hong Kong-based blockchain investment and trading firm said TT’s connection to Deribit was a “massive show of confidence” for the “exploding” options market. 

“TT’s long credible history and impressive user base combined with Deribit’s experience as one of the first crypto options platform is an exciting match that should significantly increase volumes over time,” Chu said.

Commenting on the Asia-Pacific region for retail investors, Chu also said the TT and Deribit partnership would “expand the options markets for Asian traders through a familiar and trusted platform.”

news source

Continue Reading