Crypto Wallet vs EMI - What is best?

[respect]

Hi,

I would like to know your opinions about these 2 forms of storing money:

- crypto wallet (hardware wallet)
- electronic money institution (EMI)

None of them get reported to the tax authorities (via CRS/FATCA) so in theory, you can store as much money as you want in them, not declaring it to tax authorities and you won't have any problems. However, sometimes, EMIs customer support ask you about where the money is coming from for KYC purposes, and that adds some friction as they ask you for invoices.

What are your thoughts?

 

[moneromadman]

Check out "trezor" hardware wallet. Store your 13 words in your head and you have funds that are un-confiscatable. Act with caution whilst using your wallet and you have a very safe means of storing and transferring all of your funds.

 

[franzel]

Dude... did you just compared crypto to fiat?

The system behind the value is based on different things. You can´t compare an EMI to a hardware wallet, since the characteristics are not even slightly close.

Hardware Wallet -> Money is your´s (you might need to exchange it if you cant pay with crypto)
EMI -> You better be nice and friendly with the support, because your money can disappear within seconds

 

[respect]

Check out "trezor" hardware wallet. Store your 13 words in your head and you have funds that are un-confiscatable. Act with caution whilst using your wallet and you have a very safe means of storing and transferring all of your funds.

I currently hold several NANO LEDGER S and store the recovery words in a safe place.

Dude... did you just compared crypto to fiat?

The system behind the value is based on different things. You can´t compare an EMI to a hardware wallet, since the characteristics are not even slightly close.

Hardware Wallet -> Money is your´s (you might need to exchange it if you cant pay with crypto)
EMI -> You better be nice and friendly with the support, because your money can disappear within seconds

Problem with cryptos is volatility and liquidity. BTC could be today at $9000 and tomorrow at $8000. In terms of liquidity, yeah, you can exchange it in a exchange pretty easy, but there are always fees involved in conversion.

Why do you think EMIs are that unreliable? I mean, they are not backed up by a guaranteed fund such as banks (max 100.000€), but there are pretty big monsters in this space, such as Revolut, which has a funding of over $330M. They are not as safe as banks, but they don't report to CRS / FATCA as banks do.

 

[W4rhol]

Why do you think EMIs are that unreliable? I mean, they are not backed up by a guaranteed fund such as banks (max 100.000€), but there are pretty big monsters in this space, such as Revolut, which has a funding of over $330M. They are not as safe as banks, but they don't report to CRS / FATCA as banks do.

Don't forget that a State can change the rules of the game when they want. So your 100.000 euros guaranteed can become 10.000 euros guaranteed in 24 hours.

 

[respect]

Don't forget that a State can change the rules of the game when they want. So your 100.000 euros guaranteed can become 10.000 euros guaranteed in 24 hours.

That's true, and it happened in Greece and Cyprus I think.

 

[acetylsemax]

They are not as safe as banks, but they don't report to CRS / FATCA as banks do.

How do you know that? If they become real "monsters" then they will surely be required to report. They are almost all based in the EU. This document appears to indicate the Leupay considers its accounts reportable. According to Str eber EMIs are in principle captured by AEOI but may not be reporting yet.

 

[JohnLocke]

That's true, and it happened in Greece and Cyprus I think.

Greece and Cyprus has become a state in the USA ?

 

[respect]

Greece and Cyprus has become a state in the USA ?

State = country, I think @W4rhol was referring to that

 

[respect]

How do you know that? If they become real "monsters" then they will surely be required to report. They are almost all based in the EU. This document appears to indicate the Leupay considers its accounts reportable. According to Str eber EMIs are in principle captured by AEOI but may not be reporting yet.

Some of them report to CRS / FATCA, but they are not obligate to. It's not a requisite as it happens with banks.

 

[W4rhol]

Yes, State = Country, in French we make the distinguish between the State (The administrative side who rules the citizen) and the country (the people, the land etc etc).