US Treasury Secretary Steve Mnuchin is set to impose useless, ridiculous regulation aimed at self-hosted wallets. But since he can't really regulate the apps you put on your computer, he has to do it through the exchanges. What the regulation really does is require exchanges to make you KYC before withdrawing.
Coinbase CEO Racist Boy came out against this news when it surfaced as a rumor a few months earlier. However, it wasn't doing that because of you. It was only concerned with its IPO, which is rumored to be around the corner. Unless it gets stopped in the US by government because traditional US finance wants to clear the way for an ETF.
I am putting this in writing. Please, God, strike down the Coinbase IPO. Let the regulation Mnuchin means to suffocate us, the noble investor, suffocate the selfish racists at Coinbase and all who invest in their bullshit.
Next subject. We should really take an offensive on these regulations instead of just waiting for them to come down. I truly believe that whales who owe their wealth to crypto should pool resources and start a Washington lobby. There is no better investment for a business than a politician — it's about the only thing other than crypto that can give you 100X gains in months.
Until we get to that point, here are some tips to keep the taxman out of your pocket with Mnuchin's new regulation.
- Stay away from centralized platforms when you buy your crypto. Coinbase wants to IPO, so it's going to give all of your information to any government that wants it. If you buy your crypto from them, government can track it anywhere. They will be able to see all of your transactions and may use that information against you if you are audited. Get your crypto from non-KYC OTC exchanges. I wouldn't trust OTC sellers who make you KYC, because they may represent other entities. Don't buy from Square (CashApp) or Paypal. These links tell you why. The premium you pay to stay anonymous is worth it.
- Increase your number of wallets. If you're already in crypto, you likely do your business through a few main wallets. Increase that number. Get some new ones, and start your process clean when you use them. Never let the funds from your old compromised wallets and your new wallets mingle. If you have some wallets with a chain that started from a KYC like Coinbase, keep those as your "mainstream wallets." Use them for fiat transactions and account for them in your taxes. Your new wallets, keep those clear. That's your money, and you should keep it. You can cash out to fiat through OTC.
- Use coin mixers. Coin mixers break the transaction trail of your coins. You will pay 5-10% for this privilege, but it is worth it. This helps you keep your money from the taxman.
- Start a business, get an international friend & travel. If you don't have to off-ramp your crypto into fiat into a US bank, well then, you won't really have to answer to the US taxman, will you? Use the borderless properties of crypto to off-ramp somewhere else. Then have yourself a nice trip to pick up your gains. Yes, it will be work to start an international business and get some trusted international friends. But that's not exactly working in a coal mine. I'd say finding like-minded people on a beach in Bali is a business worth exploring.
- Take loans for business accounts in the US. You should never take fiat straight out from your crypto. Take it through a banking app that lets you give yourself a loan. Take the loan out to a business account, and make sure the money is used for a "business expense."
Jeff Bezos didn't pay any federal taxes on a trillion dollars, and neither should you. The US government has done nothing but stifle innovation and slow down processes. They don't deserve any of your hard earned money, especially if you're taking the risk in crypto. Until those little shits in Washington decide to regulate a bailout for the noble investor, keep your gains to yourself.