ETANA Custody, Ewallet platforms and KRAKEN

[Btraveler]

Hello there people,

As you had noticed, at this moment is necessary to put funs on Kraken and withdrawal them via Etana Custody Platorm.

At this point, which differences are between Ethana and Advcash, Transferwise or Perfect Money platforms, which also offer multicurrency accounts where your money is hold into?

On the other hand, a cuestion only for Kraken. If you're verified in Kraken with KYC but never put FIAT into and, after exchange your crypto, you withdrawal for Fiat in a bank account on Armenia or Georgia, your EU country will know it? I mean, if your FIAT money NEVER LEAVE OR ARRIVES TO to bank accounts held in your name on any EU COUNTRY (not your EU country neither other EU countries), will Kraken or Etana will notify your EU country of origin about you're trading on Kraken?

 

[Untangle]

If Bank is part of scheme to share account holder info, it will notify tax authorities of your country of residence (included past residence the previous year if you moved country unless they don't know it) and also tax authorities of country where you hold a passport (even if you are not a resident there)

Type of operation on your account is irrelevant.

 

[Btraveler]

Ok. The situation is:

The Bank I uploaded info is from Armenia
I'm EU citizen
It will only enter bitcoin funds to Kraken or Ethana and later I'll Withdrawal to armenian account (no EU bank at this point)

 

[Untangle]

I checked, Armenia is not on CRS OCDE list so you should be ok. And is still not planned to be part of CRS in 2020.
But year on year more countries are joigning, so keep an eye on the list.

https://www.oecd.org/tax/automatic-...-by-jurisdiction/crs-by-jurisdiction-2020.htm

 

[Btraveler]

I checked, Armenia is not on CRS OCDE list so you should be ok. And is still not planned to be part of CRS in 2020.
But year on year more countries are joigning, so keep an eye on the list.

https://www.oecd.org/tax/automatic-...-by-jurisdiction/crs-by-jurisdiction-2020.htm

Hello there "Untangle". I knew that. The fact is if Ethana will disclose my details to my EU country about my movements on that Etana Wallet account or not

 

[Untangle]

Sorry, got you now. Well I am no expert, but my understanding is that any of those exchanges are considered as financial institutions, especially in the US. As such they are part or CRS and FATCA (US citizens only), so yes they may disclose information to your country or residence/citizenship I would say :-(
That's my understanding, feel free to correct me if I am wrong.

 

[Untangle]

Now you could use Bisq and transfer some coins to another individual and get cash to your Armenian account directly this way...but exchanges may have shared info already. I think it only become a problem if you cash out directly and don't declare them

 

[Btraveler]

Hello @Untangle In a normal way that I deposit FIAT with EU bank account or Withdrawal FIAT to EU bank account, it's logical that yes, they will disclousure or, at least, my EU contry will received via CRS which accounts that I have in Europe are receiving that movements.

The fact is, If I only deposit to Etana via Bitcoin, for example, and only withdrawal to the Armenia account?

 

[Btraveler]

Now you could use Bisq and transfer some coins to another individual and get cash to your Armenian account directly this way...but exchanges may have shared info already. I think it only become a problem if you cash out directly and don't declare them

I know BISQ, but there's very low volumne in Armenian DRAM currency and very low people to deal with for that reason...

 

[Untangle]

I know BISQ, but there's very low volumne in Armenian DRAM currency and very low people to deal with for that reason...

Ok but if you sell BTC to me for example, my account is UK, I can still pay you selecting Armenian currency for the recipient bank account I would imagine? I get paid in different currencies myself and bank always converts it to GBP.

If somebody sends euro to your Armenian bank account, would they not simply convert it to local currency?

And I would imagine you hold a visa/Mastercard for that account that you will use in Europe so most likely your Armenian account will charge you a fee here anyway, quiet possibly?

And be careful as some EU countries trace Visa/Mastercards transactions locally anyway, so if you do operations with an Armenian Visa card but your full name is in the card, transactions will come up and tax authority will know your are a local resident using a foreign card. I know they do this in France for example.

 

[Btraveler]

Hello there @Untangle ,

Well. When you add a new bank account (in Armenia, in my case) on BISQ, users interested in my BTC to exchange for armenian dram, have to transfer via swift to armenia...I don't find offers...Maybe I don't understand you. It's possible to put the Swift armenian account as SEPA in some way and that it works for my case?

 

[Untangle]

Hello there @Untangle ,

Well. When you add a new bank account (in Armenia, in my case) on BISQ, users interested in my BTC to exchange for armenian dram, have to transfer via swift to armenia...I don't find offers...Maybe I don't understand you. It's possible to put the Swift armenian account as SEPA in some way and that it works for my case?

Ok. Yeah I can send money to Armenia from my UK bank I just checked. It won't use SEPA but Swift
I don't see the problem either way, sender will be debited in his/her local currency and you will get in dram.