
Coinbase lets you convert your tokens into gift cards - venturis_voice
https://techcrunch.com/2018/07/25/coinbase-lets-you-convert-your-tokens-into-gift-cards/
======
pjc50
> "Gift cards aren’t as convenient as receiving money on your bank account or
> a debit card. But they’re a great way to avoid telling your bank that you
> made money by speculating on cryptocurrencies. Many banks directly report
> data on their users to local tax authorities. But don’t forget that Coinbase
> can track all your withdrawal events and notify tax authorities too."

Sigh. Always comes down to tax evasion or illegal transactions.

~~~
JumpCrisscross
> _tax evasion_

Not only tax evasion. Stupid tax evasion. Tax evasion that leaves a screaming
paper trail. None of this is being enforced right now. But in a downturn?
Particularly if the offender has assets? Enormously stupid way to do an
already stupidly-risky thing.

~~~
fred_is_fred
In the US anyway you can report someone for tax evasion and receive a portion
of what they recapture. All these people will get caught eventually.

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charlesdm
"Gift cards aren’t as convenient as receiving money on your bank account or a
debit card. But they’re a great way to avoid telling your bank that you made
money by speculating on cryptocurrencies. Many banks directly report data on
their users to local tax authorities. But don’t forget that Coinbase can track
all your withdrawal events and notify tax authorities too."

So this "journalist" is telling people it's a great idea to evade tax...
hmmmm...

~~~
giancarlostoro
Sounds like the opposite to me or is my legalese off? It reads more like a
warning than anything.

~~~
GenericsMotors
Maybe...but it sounds like the "warnings" that grape juice manufacturers
placed on their products during Prohibition, to prevent turning them into wine
accidentally by letting them ferment.

~~~
lolc
Do you know examples of such labels? I have grapes :-)

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AJRF
Couldn't someone create a 'Credits' card that converts crypto to 'Credits' and
get the top 100 stores on board, through some form of incentivisation (i.e no
processing fees, like there are with CC and Debit cards) therefore bypassing
Fiat, but do it in the form of a 'Gift Card'?

It seems you can bypass some regulations by doing this. How long would it take
until the regulatory board starts banging down your door.

~~~
CPLX
They could consider using "dollars" which conveniently are accepted means of
transaction by literally everyone.

~~~
AJRF
Oh yes Dollars, how could I forget! You forgot to mention the other upsides;
they are subject to taxes when converting from crypto, you can literally have
them lose value in your pocket via deflationary monetary policy, the work only
with the confines of a nations borders, the list goes on and on!

~~~
JumpCrisscross
> _they are subject to taxes when converting from crypto_

Using a Bitcoin gift card to purchase goods is the same as selling it for
cash.

> _you can literally have them lose value in your pocket via deflationary
> monetary policy_

Deflation means your money _gains_ value doing nothing. The dollar is
inflationary. It loses a little bit of value if it sits around doing nothing.
(If you have lots of money losing money to inflation, you're hiding illegally-
obtained currency or doing something stupid.)

Moreover, this is an odd complaint to make of the dollar relative to
cryptocurrencies, which have a habit of suddenly losing lots of value.

> _the work only with the confines of a nations borders_

Dollars are relatively internationalized. And again, an odd complaint to make
of the dollar relative to cryptocurrencies.

 _Disclaimer: I am neither a lawyer nor a CPA. This is not legal nor tax
advice._

~~~
pc86
> _Deflation means your money gains value doing nothing. You 're criticizing
> an aspect of inflationary monetary policy._

What a surprise, the person railing against fiat currency and trying to
reinvent credit cards "but with bitcoin, and without fees!" has no idea what
they're talking about.

And I think you only need that disclaimer if you _are_ a lawyer or CPA and
what you're saying could reasonably be construed as legal or tax advice.

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aphextron
Cool, so it looks like they're going all-in on the international money
laundering clearing house thing. I'm sure it will be quite profitable.

------
koolba
> Gift cards aren’t as convenient as receiving money on your bank account or a
> debit card. But they’re a great way to avoid telling your bank that you made
> money by speculating on cryptocurrencies. Many banks directly report data on
> their users to local tax authorities. But don’t forget that Coinbase can
> track all your withdrawal events and notify tax authorities too.

Does TechCrunch have any actual editorial review process or do “journalists”
publish whatever tax evasion / money laundering 101 instructional article they
want?

~~~
debt
They just publish whatever companies pay then to publish.

------
wslh
FYI BitPay offers buying Amazon gift cards with Bitcoins since 2017
[https://blog.bitpay.com/amazon-gift-cards/](https://blog.bitpay.com/amazon-
gift-cards/)

You can buy until $ 2000 daily.

