💸 BlockFi explains the no-tax perk of crypto-backed cash loans
Crypto backed cash loans are on the rise in what Bloomberg calls a "wild West environment" of finance. Loans are marked by 20-50% crypto collateral with interest rates varying from a new points to 16 percent. Bloomberg notes how a few dedicated firms, like BlockFi, are stepping into an internationally murky market which has yet to be addressed by U.S. government regulation. Since crypto assets are tagged as capital gains under IRS regulations, they are none taxable events, a selling point for borrowers.
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