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It's to exit your crypto positions without the costly process of going into fiat.
by thinkloop 6y ago
It's to exit your crypto positions without the costly process of going into fiat.
- ogogmad 6y agoWhy is converting to fiat any more expensive than selling for Tether? [edit] Maybe I've figured it out: It's essentially a way of moving a sum of fiat between exchanges without going through a bank. If you withdraw to a bank, then you have to wait a while before you can move that money back into an exchange. At least that's my experience.
- x3n0ph3n3 6y agoExiting to fiat requires KYC reporting and taxes. Tether, in many settings, allows you go get away with _not_ doing that.
- ogogmad 6y agoBut that requires that the exchange doesn't impose KYC requirements when you withdraw Tether. Do such exchanges exist? Are they legal? Bitfinex, which is closely affiliated with the company that runs Tether, actually does not allow you to withdraw Tether without doing KYC. This circles back to my first post.
- arcticbull 6y agoThere are plenty of non-Bitfinex un-banked exchanges that allow you to do whatever you want, including the DEXs.
- ogogmad 6y agoOK, so let's say you buy and sell crypto using DEXes, and take home your profit in the form of Tether (or another stablecoin). What happens if you want to spend it on things? You can't use Amazon, eBay or any supermarket because none of them take Tether - so you're left holding a bag of useless Tether. Again, what is the point?
- arcticbull 6y ago> Exiting to fiat requires KYC reporting and taxes. Tether, in many settings, allows you go get away with _not_ doing that. The IRS has been very clear, when you swap one crypto for another, it's a taxable event. Generally it's not a good idea to avoid the reporting. [edit] Cleaned up as I likely misread your statement.
- ur-whale 6y ago> it's a taxable event. In USistan
- deleted 6y ago[deleted]
- usmannk 6y agoIs discussing a venue for (possible, depending on your location) tax fraud equivalent to admission of participating in tax fraud?
- arcticbull 6y agoThanks for pointing that out, I've edited it to clear up what I meant. Poor wording on my part.
- frankenst1 6y agoTether is also a "crypto position" and does not hold any special tax exemption status. If you exchange your crypto asset A for any other crypto asset B (e.g. Tether) it creates a taxable event under most jurisdictions.