Morgan Stanley to lead the Wall Street Pack into Crypto

Morgan Stanley is preparing to make the step into crypto, hoping to beat the Wall Street pack and leave long time rival Goldman Sachs behind, as insiders claim
01 May 2018   1193

As it has been declared in the interview with an unnamed insider at Morgan Stanley, that has been reprinted by SludgeFeed, Morgan Stanley is intending to add cryptocurrency to their trading products within a short period of time. The company's  aim is to create a special desk for institutional traders, ICOs, and arbitrage, and also to do it before Goldman Sachs or any of the other major financial institutes do.

The anonymous source claimed that Morgan Stanley is rapidly consulting with money managers and hedge funds which already have money in the space and are concentrated on “firms that are apt to add to their current portfolios as opposed to starting from scratch.”

Truth be told this is the next arms race. EVERYONE IS RUSHING INTO CRYPTOS. Everyone. There isn’t a bank, a fund, a fund company, a former legend attempting to reclaim old glory, private equity, venture capital, lending, exchanges, consulting firms – everybody. It is the digital gold rush. And our firm wants to get there and pull as many levers as we can. 
Unnamed source

Nasdaq CEO Adena Friedman said CNBC’s Squawk Box last week that creating a Nasdaq cryptocurrency exchange is under consideration which lead to Bitcoin raising  an all-time high on the CboE as institutional means came into the market. Goldman Sachs intending not to be left behind has been indicating that it too will set up a trading desk working with cryptocurrency and has recently finished their first high-level crypto-centric position. The firm employed Justin Schmidt, a former trader, as vice president and head of digital asset markets in Goldman’s securities division. The bank is going to have its platform up and launching by the end of summer 2018.

Wall Street’s enter to the cryptocurrency market seems inevitable since institutional investors are stated to push money into the space. The number of cryptocurrency hedge funds has increased eight times since 2016 but stay limited as to what they can do with their money since no bank has yet filled the niche of providing crypto services but, by all indications, this will change by the end of 2018.

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.