The Hong Kong Securities and Futures Commission (SFC) has issued a reminder to crypto investors in the region, emphasizing the importance of using or trading on approved virtual asset trading platforms (VATPs). In a statement released on February 5, 2024, the SFC urged investors to verify the regulatory status of a VATP before engaging in any transactions.
Background: Unlicensed Operators and Realistic Prospects
This latest warning from the Hong Kong regulator comes several months after it advised users to avoid using unlicensed operators. At the time, the SFC stated that many of these entities had little chance of obtaining a license.
Two Lists: Licensed Entities and Platform Applicants
The SFC also highlighted the importance of paying attention to the lists on which VATPs are featured. There are two lists: one for licensed entities and another for those that have applied for a license.
According to the SFC, VATPs featured on the "List of licensed virtual asset trading platforms" are officially licensed by the SFC. On the other hand, VATPs on the "List of virtual asset trading platform applicants" include platforms operating in Hong Kong that have submitted license applications to the SFC on or before February 29, 2024.
Consequences for Non-compliant VATPs
The SFC disclosed that Virtual Asset Service Providers (VATPs) failing to submit their license applications by February 29 will be required to cease operations by May 31. Additionally, the SFC advised crypto users who are utilizing VATPs not featured on either list to close their accounts or consider transferring their funds to licensed VATPs.
The SFC also cautioned that trading on platforms listed as virtual asset trading platform applicants carries a risk, as their respective license applications are still being processed. The regulator concluded its statement by urging users to avoid trading on unapproved VATPs, as they offer no protection.
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Frequently Asked Questions
How to Open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. If you do, you must open the account by completing Form 8606. For you to determine the type and eligibility for which IRA, you need Form 5204. This form must be submitted within 60 days of the account opening. Once this has been completed, you can begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process will look identical to an existing IRA.
To be eligible for a precious metals IRA, you will need to meet certain requirements. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. And, you have to make contributions regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. However, you won't be able purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. This option is available from some IRA providers.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they are not as liquid or as easy to sell as stocks and bonds. They are therefore more difficult to sell when necessary. They don't yield dividends like bonds and stocks. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.
How much do gold IRA fees cost?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
If you want to diversify, you may be required to pay extra fees. These fees will vary depending upon the type of IRA chosen. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
In addition, most providers charge annual management fees. These fees range between 0% and 1 percent. The average rate is.25% each year. However, these rates are typically waived if you use a broker like TD Ameritrade.
Can the government take your gold
Your gold is yours and the government cannot take it. You have earned it by working hard for it. It is yours. This rule may not apply to all cases. You can lose your gold if you have been convicted for fraud against the federal governments. You can also lose precious metals if you owe taxes. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
Which precious metal is best to invest in?
This depends on what risk you are willing take and what kind of return you desire. While gold is considered a safe investment option, it can also be a risky choice. For example, if your goal is to make quick money, gold may not suit you. Silver is a better investment if you have patience and the time to do it.
If you don’t want to be rich fast, gold might be the right choice. Silver might be a better investment option if steady returns are desired over a long period of time.
What is a Precious Metal IRA?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These are “precious metals” because they are hard to find, and therefore very valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Bullion is often used for precious metals. Bullion is the physical metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. This will ensure that you receive annual dividends.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, you pay a small percentage tax on the gains. Additionally, you have access to your funds at no cost whenever you need them.
What precious metals do you have that you can invest in for your retirement?
It is gold and silver that are the best precious metal investment. They are both easy to trade and have been around for years. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: The oldest form of currency known to man is gold. It's also very safe and stable. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: Silver is a popular investment choice. It's a good choice for those who want to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinum: A new form of precious metal, platinum is growing in popularity. It is very durable and resistant against corrosion, much like silver and gold. However, it's much more expensive than either of its counterparts.
Rhodium – Rhodium is used to make catalytic conversions. It is also used for jewelry making. And, it's relatively cheap compared to other types of precious metals.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also more affordable. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
cftc.gov
irs.gov
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
finance.yahoo.com
How To
A growing trend: Gold IRAs
As investors look for ways to diversify their portfolios and protect themselves against inflation, the gold IRA trend is on the rise.
The gold IRA allows owners to invest in physical gold bullion and bars. It can be used as a tax-free way to grow and it is an alternative investment option for people who are not comfortable with stocks or bonds.
A gold IRA allows investors the freedom to manage their wealth without worrying about volatility in the markets. Investors can use the gold IRA for protection against inflation and potential problems.
Investors also have the benefit of physical gold, which has unique properties such durability, portability and divisibility.
Additional benefits of the gold IRA include the ability to quickly pass ownership to heirs. Additionally, the IRS does not consider gold a money or a commodity.
Investors looking for financial security are increasingly turning to the gold IRA.
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By: Terence Zimwara
Title: Hong Kong Regulator Urges Crypto Investors to Only Use Approved Trading Platforms
Sourced From: news.bitcoin.com/hong-kong-securities-regulator-issues-warning-to-unlicensed-virtual-asset-trading-platforms/
Published Date: Tue, 06 Feb 2024 11:30:34 +0000
