What People Should Know About Crypto Cards
Companies are trying to make it easier than ever to spend as well as earn Bitcoin. Mastercard is one of the credit card companies in the world. This summer, it plans to launch a credit card with crypto exchange Gemini, co-founded by billionaires Cameron Winklevoss and Tyler Winklevoss.
But there is a massive catch according to accountants and financial advisers. Every time you take a crypto card out of your wallet to pay for various services, you are logging a “taxable event”. Many people don’t realize that whenever they spend cryptocurrencies to buy consumer items, that triggers a capital gains event.
People should be aware of one very important fact. Notably, there is always a difference between how much you paid for Bitcoin or other cryptocurrencies, which is the cost basis, and the market value at the time you spend it. That contrast can trigger income capital gains taxes, in addition to other taxes, such as sales tax.
Nevertheless, a lot of people don’t seem to care about the tax headache. Interestingly, Visa said that more than $1 billion was spent by clients globally on goods and services through their crypto-linked cards. We are talking about the first six months of the year. Crypto cards offer several perks, so it is not surprising that customers are willing to use them regularly. They don’t have to worry about annual fees and crypto cards offer an easy off-ramp when it comes to crypto cash.
Alchemy Pay and its crypto cards
The hybrid crypto-fiat payment gateway Alchemy Pay continues to expand its operations. It announced the launch of virtual crypto-linked cards that will support and accept more than 40 cryptocurrencies.
Millions of merchants around the world that use the Visa and Mastercard networks will accept virtual cards linked to digital wallets such as Google Pay and PayPal. The cards will also be accepted on main eCommerce platforms such as Amazon as well as eBay. The hybrid crypto-fiat payment gateway expects to launch its new service towards the end of 2021 or early 2022.
It is also moving into the European as well as Asian markets through partnerships with two companies. The first partner is the crypto exchange MEXC Global and the second partner is a custody provider Cobo Custody. The partnership with the crypto exchange will provide fiat on-ramps for MEXC’s European market. It will also enable customers to deposit fiat onto MEXC Global with their credit and debit cards.
