Stablecoins to face new restrictions in Japan
asia.nikkei.com
asia.nikkei.com
The Bank of Japan and the large banks in Japan operate one giant, corrupt, stupid oligarchy. It’s the insane incompetence of these entities, and witnessing it first-hand, that made me realize that non-bank crypto/digital currencies and stores of value are going to end up winning. Living in a first-world country with a third-world banking system has been an absolute eye-opener.
Don’t buy the hype — this is all about helping a bunch of entities that have done very little to serve the needs of the people whose tax revenue directly subsidizes their elaborate racket. The worst part is, these large Japanese banks aren’t just a domestic problem: outside of their borders, they’re some of the largest financiers of environmental destruction in the world (palm oil plantations, coal mines, etc) because they know the Japanese media will never tell the public what they’re up to.
It’s almost as though these global regulators and banks are hoping for massive systemic risk and failure in crypto, so they can step in and “save the world.” And, judging from 90% of the comments in these sorts of articles on HN, the “enlightened” public will cheer them on as they do it.
What if Tether was relying on a Bahamas bank created by the writer of inspector gadget ? That d be quite worrying to let them continue saying it's all safe and real, no?
The anti-crypto people on here are as annoying as the “social networking websites are not worth hundreds of millions of dollars” were in the early 2000s.
That doesn't remove from you the duty to explain why we should allow giant cons for the sake of trying someth. It's not like stocks of public companies, which were half scams half building railways. I d argue here crypto is not helping build railways :(
Oh and it's harder to lose all your saving on a speculative frenzy with social medias, so I d say we need to be more cautious this time.
Boy when you find out how Tether and the crypto markets operate, you're going to be pretty disappointed.
Somehow they've managed to create a more corrupt and stupider oligopoly by all measures.
Make no mistake central banks themselves aren't threatened by all this. What they are, is by charter, responsible for managing the fall-out. The charter of central banks tends to be to manage the money supply to create a low and predictable rate of inflation over medium timeframes - and to maximize employment. If enough people tank the economy by buying Paolo's Bahamian Funbucks, the broader economy can in fact suffer and it will then cause the central banks to have to step in to carry out their mandates. Just like 2008.
> It’s the insane incompetence of these entities, and witnessing it first-hand, that made me realize that non-bank crypto/digital currencies and stores of value are going to end up winning.
This is just tinfoil hat economics. Citation needed.
And remember, extraordinary claims require extraordinary evidence.
For example, we are in what amounts to be a "silent" depression. If we were on a gold standard we would have had a great depression again, instead, our modern money system lets us sustain a mortal wound and let us get away with limping at a snails pace.
What kind of reforms would be necessary to get out of this mess? Ah, yes, the abolishment of the nominal 0% interest rate on cash.
What does the cryptocurrency community do? They double down on massive speculation. They are stuck in the past.
>It’s almost as though these global regulators and banks are hoping for massive systemic risk and failure in crypto,
Nah, the regulators create ineffective rules, the banks game them as systemic risk is highly profitable if there is an even greater entity that bails them out.
Well that's a generous read of Tether's backing. [1]
[1] https://ag.ny.gov/sites/default/files/2021.02.17_-_settlemen...
Because if not, that sounds like a massive tax gap that should probably be addressed.
This was clarified in the 2017 tax reform, and the IRS has also said it applies pre-2017 (pre-2017 law is totally worth challenging but its much lower value involved so its history).
I know plenty of people, including their CPAs, that get this wrong. Mostly because they never had to handle taxes themselves before, but they imagine things like only paying taxes when dollars hit their bank account, a wild abstraction that is saying the crypto exchange financial institution is ignorable for taxes and all their onchain data is ignorable for taxes.
(Fun question to upset everyone: suppose you, along with some other people, own an ownership/control token in a DAO. The DAO makes some trades on your behalf. Who incurs what tax liability?)
As governance tokens aren’t equity, and there is nothing to pass through
Either way, there would be enough board seats OR shareholders from different places to dilute ownership to ensure there was no subpart f income
bearer board seats, even better than bearer shares. Crypto is immediately picking up the baton after all that energy was used to jettison bearer shares off the planet over the prior two decades.
Sure, it's dumb to renew my Notes software and have that be a taxable event but...not my problem anymore :)
Kill the stablecoins, kill the valuations, kill the manias, stop the madness. Or at least help, anyways.