Quick Update on ERC20 MAID

Snap.
They wanted trade logs but won’t accept csv. They said pdf OK.
I converted csv to pdf, then pdf weren’t OK.
Then I screenshot proof of trading and they wanted my name on the same page something not even possible on their exchange.
Then they threatened to lock my acc with 4 hrs notice ( better than the 2 previous times where I got 0 notice ).

Pulled all funds, now today they say I’m re verified and won’t lock the account…

Pita and a 5 week back and forth , where they just wanted more and more as you experienced.

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When it felt like they were just looking for a reason to lock my account I lost confidence. I’d rather wait for an alternative than have them steal a single dollar from me.

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Hi Sotros, I have a question: when you convert Omni to ERC20 you have to go thru KYC/AML.

Do you know if we have to go thru the same procedure once we will convert from Omni to SNT?

Thanks!

@andreruigrok where did you see that this will be a requirement? could you point me to the relevant info please.

I believe it is, correct me if I am wrong.

Details on what is necessary from a compliance standpoint are being finalized. It is highly likely that some form of KYC/AML will be necessary. Ultimate requirements are TBD.

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Thx much appreciated :+1:t2:

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Just so most people know, this could be considered a taxable event by trading MAID for ethMAID, depending on your jurisdiction.

It’s like using a bridge from Ethereum to Polygon or Binance Chain - you wrap your MAID. Everyone should check, but it is very unlikely to be a tax event…


Privacy. Security. Freedom

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To be expected from an intelligence agency backed exchange. Never enough information collection for these people. Speaking of which…

A honeypot of invasive info on all the people interested in a privacy project would be a very heavy burden to everyone involved, unless information collection is part of the design goal in similar vein to the exchange referenced above.

DeFi runs billions daily for years now through wrapped tokens with no FATF requirements (or tax consequence). A change in jurisdiction may be warranted to avoid the risk of all this outstanding effort having underwhelming community response.

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NOT TAX ADVICE:

That article seems to regard wrapping as a taxable event. In UK I’d be surprised if this wasn’t the case, given that not doing so is inconsistent with their aproach (where exchange of one token for another is a taxable event).

So in UK that would mean a tax liability for any Capital Gains between the value of MAID when you wrapped it and the value when you bought. The same would appear to apply when exchanging MAID for SNT.

The situation in other countries is different from UK though, so wrapping and exchange may not be taxable where you are.

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Cointracker is in the business of tracking crypto portfolio for tax purposes. They default to wrapping as being non-taxable but with the same open ended warning as with token swaps (like the upcoming MaidSafeCount to Safe Token):

As with many newer crypto phenomena - most tax offices haven’t given official guidance on wrapped tokens.

This also appears to be case in the UK, apparently, from HMRC: Cryptocurrency - Tax Treatment of Wrapped Cryptoassets

At the end of the day without clear guidance or precedents to go by from any of our respective tax offices, it comes down to how conservative you wish to personally treat them (from Cointracker link above):

Conservative position: taxable . It could be argued that the wrapped version of the original coin is a new coin resulting in a disposition of the original coin. Crypto-to-crypto trades are taxable (A15).
Aggressive position: not taxable . The intention of wrapping a coin is to add additional functionality to the original asset to make them work with DeFi protocols. Therefore, it is not a disposition and wrapping is not a taxable event.
(CoinTracker defaults to this approach which is pro-taxpayer)

Of course none of this is tax advice. Not even our local Tax Office (any of them) are dishing that out for wrapped tokens or the myriad of other Defi constructs that are available… yet.

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I’m not an expert and this is not real tax advice, but, logically to me, it shouldn’t be a taxable event. After all, you still have full claim on the original token, you didn’t “dispose” of it. I think of it closer to a collateralized loan. You leave your MAID on collateral with a custodian, and you are leant wrapped tokens.

Think of it like a casino. You give them cash, they give you chips. If you convert cash to chips at a casino and don’t realize any gain when you convert them back to cash, there’s no taxable transaction there.

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I think the analogy would be exchanging something that may have risen in value (eg shares) for casino tokens (rather than exchanging cash on which there can be no capital gain, for casino tokens). If you did that you would I think be liable for any capital gain in the value received for those shares.

I agree it isn’t clear whether logically, wrapping should be taxable, but I expect that in UK it will be.

But you aren’t selling or disposing of anything. Your casino chips are just representations of your cash (or shares if you want to go that route). You could take those chips you just acquired, turn around, and give them back to get back exactly what you gave them as collateral.

It’s even more logically sound, because casinos will give you back the same value, but not necessarily the same exact cash/shares/whatever you gave them. In this scenario, the casino stores your collateral in a personalized vault, and you get back exactly what you gave them.

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It’s not the value at the casino in/out exchange that matters here. It’s the difference in value of the shares (or MAID) between when you first acquired them and when you exchanged them at the casino.

I understand your logic, which I think is that the casino could return your collateral (shares/MAID). It’s a valid argument, but it’s my opinion that in UK they will treat it as a tax event. Not because I think your logic is flawed, just because the tax office get to decide the rules, and unless you are able to risk a lot of money on lawyers you have to accept them.

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Please tell us what ERC20 MAID will be. Is it basically a wrapped MAID from the Mastercoin token, or some new token?

Wrapped MAID (Omni nee Mastercoin).

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On the bright side, if maid is down in value vs when you purchased, you can wrap it not losing any and record a loss.

I say thay but im not sure of the detail’s, but i sure hope no one will take a % of the coin, or if they do it woukd be minimal.