a reddit user by the username tarmogoyf333 posted this picture of a letter he received from his bank that is based in Lapeer, Michigan
this is not a large national or international bank but the fact that we see JP Morgan calling bitcoin a fraud and then lakestone saying that transactions into crypto is not allowed is a very big warning sign for what is to come. what do YOU think the banking industry's next move is? people are buying crypto in record numbers and its only growing, taking away business from centralized banks, I personally think we will see a split, some banks will try to ban crypto purchases while others will try to start their own exchange, giving incentive for customers who have native accounts with them e.g : "The Chase crypto exchange offers a low exchange rate for those with a chase account and direct deposit!" this is only my speculation, as of now all we have seen is banks demonize crypto and not refuse to allow purchase of it.
thanks for reading!
This is huge!
There is nothing they can do about it. Crypto is here to stay.
I believe this too, but what do you think they will TRY to do? I think it could effect the market in the short term
Hello and thanks for this most interesting note @sactheskydiver. I agree with your view the banks will be split, at least until the central bank comes down hard with threats against what it sees as being “rogue banks”.
I see some banks opening up a business of supplying safekeeping for people’s cryptocurrences, with some kind of guarantee that they will compensate their clients if they make a mess in the process. I suppose it is unlikely that this will happen in the USA; but in another country that I do not recall just now this process has already begun.
As regards the banking industry’s moves, I buy the argument that we have already seen a big one: the start of futures trading on the CME. Please go here https://steemit.com/bitcoin/@lestatisticien/bitcoin-could-make-you-rich-but-bitcoin-futures-traders-may-be-the-king-s-men , to see my related post.
I believe that you are correct in directing peoples’ attention to an important fact -- using our bitcoin “riches” requires that we cross the bridge between crypto and fiat, and that bridge is controlled by the banks!
Cheers!
is correct If I recieved a letter like this, I would start to look for an other bank ...
They seriously said that
This really shouldn't surprise anyone. The banks that do not understand blockchain and crypto technology ban it. They are not open to new ideas of you creating wealth on your own. They want to sell you something they've come up with. They want you to borrow money so they collect that interest. You're nothing to these banks but a $.
The banks that do understand crypto fear it more than the banks that do not understand it. This is where you get the Jamie Dimon's of the banking world calling it a farud so they can get in on it. Apparently a large part of JP Morgan is pushing for them to get in on it so its already doing what Jamie doesn't want. Dividing the bank thus reducing its power. I believe more big banks will get in on blockchain technology than will pass on it. Look at Ripple.. The banks cannot win and they know it. As long as the U.S. Govt doesn't decide to ban it which after reading the provisions in the new tax law where every single transaction as of Jan 1 is taxable I don't see a ban... ever. Once people figure out yeah you do have to pay your taxes on crypto gains this will be a huge amount of money for Uncle Sam. Sucks for you and me but it seems to me they see it as a cash cow. Keep your transaction count low or make them good/worth it.
Personally I am going to pay my taxes accordingly rather than get burned later after an audit. Keep in mind bigger deposits trigger red flags within the IRS. If you have done well and have sold BTC or whatever for profit in the form of cash there is record of it. The exchange you use should be able to show you every single trade you made, bittrex shows me. Can download my entire history right now. So if you get audited and they want to see that stuff you have to show them. There is no saying no. You can get a lawyer and fight it. You will lose. They will get those records. They will see every single penny you have moved. This idea that blockchain makes you anonymous and invisible simply isn't 100% true. It does for your transactions with crypto to others yes. They can see your wallet but don't know who you are. When it comes to Uncle Sam.. Well you're not invisible at all. And there is a record of everything you do. When they want to see it you will provide access or you will go to jail. Not to be a downer but this is reality people. Cash leaves a trail. Think about it. Thinking you're immune to taxes here in the United States is just a terrible, terrible idea, you could potentially loose everything you worked so hard to get.. A simple search of 2018 crypto tax code/law and you can read it yourself. Sam is coming for his cut.. Don't be the person who reads this and in 10 years is in prison for tax evasion.
If I recieved a letter like this, I would start to look for an other bank ...
They seriously said that here and in the other hand speculate on every risky maret they found ?!
can you post a link to that letter so I can add to this post?
ohhhh I just realized you said "if" doh!
=)
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STOPloooool. the best part of the letter is at the bottom imo:
"Louise Vermillion; AVP Loss Prevention Officer". I mean,c´mon... Loss Prevention Officer???? What is this supposed to be? LMAO!
Right? If that's doesn't say the centiment I don't know what does!!!
If I were you I would go to the bank personally and tell them that I am closing my account and will be telling everyone about your banks bad business policies. I would also try to bring this to the media's attention.
I've asked Transferwise team, they said the same, risk of having the account closed and payment refunded also.