BTC is a Pin, not a Bubble, BTC Foundation Founder Says

Jon Matonis thinks it's great that big banks are getting interested in crypto
02 April 2018   1343

Co-founder and CEO of Bitcoin Foundation Jon Matonis sure that the fears associated with the "bubble" of cryptocurrency are unreasonable. On the contrary, this is just the stock markets are always artificially "inflated" by central banks, he said in an interview with Business Insider at the Innovate Finance conference in London earlier this month.

To the people who say bitcoin’s a bubble, I would say bitcoin is the pin that’s going to pop the bubble. The bubble is the insane bond markets and the fake equity markets that are propped up by the central banks. Those are the bubbles.
 

Jon Matonis

Co-founder and CEO, Bitcoin Foundation

He is confident that now the economy is moving away from "legal currencies managed by banks", decentralized assets like bitcoins support this shift.

Prior to the Bitcoin Foundation, Matonis was a trader in the Japanese bank Sumitomo and Visa. Non-profit organization was founded to support core-developers of bitcoin-protocols. Matonis was on the foundation's board from 2012 to 2014 and to this day holds the post of executive director.

Despite skepticism about the existing financial system, he is sure that it's great that big banks like Goldman Sachs are showing increasing interest to the world of cryptocurrency.

They’re going to develop futures markets, options markets, I even think you’re going to start to see interest rate markets around bitcoin. We’re used to hearing things about Libor, the index for bitcoin interest rates is Bibor.
 

Jon Matonis

Co-founder and CEO, Bitcoin Foundation

According to him, regulators around the world are trying to find a "common language" with cryptocurrencies, and in the UK they recently announced the creation of an appropriate work group.

I think we should operate in an environment of caveat emptor, let the buyer do his research. This hopefully has forced a lot of investors to do more research. No one is forcing them to invest in ICOs [initial coin offerings]. If you’re worried about the risk, just walk away.
 

Jon Matonis

Co-founder and CEO, Bitcoin Foundation

In May last year, the executive director of the Bitcoin Foundation, John Matonis, joined the nChain blockchain company. 

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   180

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.