Kraken, a global leader in cryptocurrency exchange, has disclosed its intentions to acquire the esteemed Coin Meester B.V. (BCM), a top-notch crypto broker based in the Netherlands. This acquisition forms a critical part of Kraken's ambitious European expansion strategy. With firm dedication to navigate and conform to the European trading regulations, it is ultimately directing its efforts towards achieving registrations in multiple European markets.
The Future of Crypto Exchange with Kraken's New Acquisition
In a recent revelation, Kraken divulged its upcoming acquisition of Coin Meester B.V. (BCM), a Dutch-based cryptocurrency broker. Tracing its roots back to 2017, BCM is recognized as an established and highly-respected crypto broker in the Netherlands. It offers an array of services which include buying, selling, and staking cryptocurrencies, alongside providing access to more than 170 different types of cryptocurrencies.
The Potential Benefits of Kraken's Acquisition of BCM
Kraken's strategic acquisition of BCM will potentially consolidate its foothold in the Netherlands. The benefits will reach beyond that to BCM’s clienteles who will have the advantage of accessing Kraken’s distinguished product offers, superior security standards, and round-the-clock customer support services. This bold move is a testament to Kraken's commitment towards enhancing its presence and competitiveness in the European region.
Perspectives from Kraken CEO
David Ripley, the CEO of Kraken, expressed his excitement about the acquisition: “Integrating BCM into our network will significantly boost Kraken's position in the Dutch market. Additionally, BCM’s longstanding customers will reap the benefits of a broader product portfolio.”
Ripley noted the favorable conditions provided by the Netherlands. With its advanced economic landscape, openness to innovation, and high level of cryptocurrency adoption, the country is an ideal location to leverage, as part of European expansion efforts.
European Expansion Aligned with Regulatory Compliance
Marking a significant step towards its European expansion plan, Kraken’s decision also aligns with the introduction of the Markets in Crypto-Assets (MiCA) regulatory framework by the European Commission. The initiation of this regulation encourages industry players to invest and provide customers with superior and competitive products and services within the region.
Kraken, with VASP licenses currently operating in Ireland, Italy, and Spain, is earnestly seeking to acquire more registrations in various other European markets. This steadfast commitment to regulatory compliance will spur Kraken’s growth and expansion across these markets.
The Future of the Proposed Acquisition
However, the ongoing acquisition plan is subjected to certain conditions which predominantly include acquiring essential regulatory approvals.
Indeed, Kraken's strategic acquisition of a reputable Dutch crypto broker proves to be a significant part of its European market expansion strategy. Only time will tell how this acquisition affects Kraken's stance in the European crypto market.
Frequently Asked Questions
Should you open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. If you lose money in your investment, nothing can be done to recover it. This includes all investments that are lost to theft, fire, flood, or other causes.
Protect yourself against this type of loss by investing in physical gold or silver coins. These items have been around for thousands of years and represent real value that cannot be lost. These items are worth more today than they were when first produced.
Consider a reputable business that offers low rates and good products when opening an IRA. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
Remember that you will not see any returns unless you are retired if you open an Account. So, don't forget about the future!
How to Open a Precious Metal IRA
First, you must decide if your Individual Retirement Account (IRA) is what you want. Open the account by filling out Form 8606. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should not be completed more than 60 days after the account is opened. After this, you are ready to start investing. You can also choose to pay your salary directly by making a payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process will be identical to an ordinary IRA.
To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS stipulates that you must have earned income and be at least 18-years old. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. You must also contribute regularly. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
You can use a precious metals IRA to invest in gold, silver, palladium, platinum, rhodium, or even platinum. You can only purchase bullion in physical form. This means you won't be allowed to trade shares of stock or bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. This option can be provided by some IRA companies.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. Second, they are not able to generate dividends as stocks and bonds. Therefore, you will lose more money than you gain over time.
Should You Invest Gold in Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. Consider investing in both.
In addition to being a safe investment, gold also offers potential returns. It's a great investment for retirees.
Although most investments promise a fixed rate of return, gold is more volatile than others. This causes its value to fluctuate over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. This just means you need to account for fluctuations in your overall portfolio.
Another benefit to gold? It's a tangible asset. Gold is much easier to store than bonds and stocks. It can also be carried.
As long as you keep your gold in a secure location, you can always access it. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
It's also a good idea to have a portion your savings invested in something which isn't losing value. Gold rises in the face of a falling stock market.
You can also sell gold anytime you like by investing in it. You can also liquidate your gold position at any time you need cash, just like stocks. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Don't buy too many at once. Begin by buying a few grams. Continue adding more as necessary.
It's not about getting rich fast. Instead, the goal is to accumulate enough wealth that you don't have to rely on Social Security.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
How much money should I put into my Roth IRA?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. These accounts are not allowed to be withdrawn before the age of 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, your principal (the original deposit amount) cannot be touched. You cannot withdraw more than the original amount you contributed. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
You cannot withhold your earnings from income taxes. So, when you withdraw, you'll pay taxes on those earnings. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's further assume you earn $10,000 annually after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. So you would only have $6,500 left. Because you can only withdraw what you have initially contributed, this is all you can take out.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. You can withdraw your contributions plus interest from your traditional IRA when you retire. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs are not allowed to allow you deductions for contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal requirement, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
What Precious Metals Can You Invest in for Retirement?
Silver and gold are two of the most valuable precious metals. They are both simple to purchase and sell, and they have been around for a long time. You should add them to your portfolio if you are looking to diversify.
Gold: This is the oldest form of currency that man has ever known. It's stable and safe. It is a good way for wealth preservation during uncertain times.
Silver: Investors have always loved silver. It's an ideal choice for those who prefer to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It's resistant to corrosion and durable, similar to gold and silver. It is however more expensive than its counterparts.
Rhodium. Rhodium is used as a catalyst. It is also used as a jewelry material. It is also very affordable in comparison to other types.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also much more affordable. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Can I buy or sell gold from my self-directed IRA
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts are financial instruments based on the price of gold. These contracts allow you to speculate on future gold prices without actually owning it. You can only hold physical bullion, which is real silver and gold bars.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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)
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads and Example. Risk Metrics
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. It was also traded internationally due to its high value. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). The result was a decrease in foreign currency demand, which led to an increase in their price. The United States began minting large quantities gold coins at this time, which led to a drop in the price. The U.S. government needed to find a solution to their debt because there was too much money in circulation. They decided to return some of the gold they had left to Europe.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. After World War I, however, many European countries started using paper money to replace gold. The price of gold rose significantly over the years. Even though gold's price fluctuates, it is still one of the most secure investments you could make.
By: Kevin Helms
Title: Kraken's Strategic Acquisition: A Planned Leap into European Crypto Market
Sourced From: news.bitcoin.com/kraken-to-expand-its-presence-in-europe-with-acquisition-of-dutch-crypto-broker/
Published Date: Sat, 07 Oct 2023 02:30:04 +0000