The UK Watchdog forestalls Against Coin Boost Inc.

FCA issued a warning to only deal with authorized financial companies
20 June 2018   1242

On Monday the Financial Conduct Authority (FCA) has published a warning against Coin Boost Inc. for proposing financial services or products in the United Kingdom without authorization. As claimed on their webite, Coin Boost Inc. suggests investment plans for bitcoin traders and markets itself as the most “secured place to invest your bitcoins.” It declares it is a registered legal international investment company in the US and its activities are controlled by the US international business officials. It also demands it acts in accordance with US legislation.

The broker confirms to have an office at 313 Patterson Road, Brooklyn, New York, UNITED STATES OF AMERICA, 11209. The UK regulatory has yet again published an alert to only deal with financial firms that have been authorized by the FCA. Individuals can check the Financial Services Register in order to see whether an organization is authorized.

The watchdog statement also informed the UK investors that if something goes wrong while trading with unauthorized brokerages, they will not be optative to get assistance from the FCA. This warning follows a recent report that demonstrated the grow of online investment fraud, that Finance Magnates reported on in January. The report claimed that investors had lost an average of GBP 87,410 (USD 118, 379) per day during 2017.

The conclusion made by the FCA’s report is that scammers’ tactics have changed and many now utilize social media and other online marketing methods to reach potential investors, instead of approaching them through traditional tactics such as cold calling.

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   168

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.