The Virtual Assets Regulatory Authority (VARA) in the United Arab Emirates (UAE) has announced that Bored Gen DMCC (BG), the issuer of the Islamic Coin, has fully cooperated with their ongoing investigation into the token's issuance and distribution. However, BG still needs to obtain appropriate approvals before distributing the Islamic Coin (ISLM) in the Dubai market.
BG's Undertaken Measures
VARA recently disclosed that BG has fully cooperated during their investigation and has taken remedial measures to improve market assurance. These measures include implementing adequate public disclosures.
In its enforcement notice on November 16, VARA stated that the ongoing investigation has revealed technical non-compliance issues. As a result, BG is required to obtain appropriate approvals before distributing the Islamic Coin in the Dubai market. However, BG can continue its non-VA activities as long as it maintains regular engagement with VARA and complies with all applicable regulatory requirements.
Issuer vs Developer Entity
Contrary to VARA's statement, BG claims that it is not the issuer but a developer entity. BG's role involves developing essential components like the Haqq Wallet and Launchpad. The public sale of ISLM reportedly took place on the Republic platform, a regulated entity based in the United States. The sale adhered to Reg D and S for U.S. and non-U.S. investors respectively, with Dubai explicitly excluded from the sale.
The cooperation of Bored Gen DMCC with the Virtual Assets Regulatory Authority's investigation into the issuance and distribution of the Islamic Coin is a positive development. However, BG still needs to obtain the necessary approvals before distributing the token in the Dubai market. The distinction between BG as a developer entity, rather than an issuer, adds further complexity to the situation. It remains to be seen how this investigation will unfold and what impact it will have on the Islamic Coin's future.
What are your thoughts on this story? Let us know in the comments section below.
Frequently Asked Questions
How much of your IRA should include precious metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't have to be rich to invest in them. You can actually make money without spending a lot on gold or silver investments.
You might consider purchasing physical coins, such as bullion bars and rounds. Stocks in companies that produce precious materials could be purchased. You might also want to use an IRA rollover program offered through your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
And, unlike traditional investments, their prices tend to rise over time. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
What does gold do as an investment?
The supply and demand for gold affect the price of gold. Interest rates also have an impact on the price of gold.
Gold prices are volatile due to their limited supply. Physical gold is not always in stock.
How is gold taxed in Roth IRA?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
Each state has its own rules regarding these accounts. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. Massachusetts allows you to delay withdrawals until April 1. New York is open until 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.
Do You Need to Open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. There is no way to recover money that you have invested in precious metals. This includes any loss of investments from theft, fire, flood or other circumstances.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These items have been around thousands of years and are irreplaceable. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
Consider a reputable business that offers low rates and good products when opening an IRA. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
Remember that you will not see any returns unless you are retired if you open an Account. So, don't forget about the future!
Who owns the gold in a Gold IRA?
The IRS considers any individual who holds gold “a form of income” that is subject to taxation.
You must have gold at least $10,000 and it must be stored for at the least five years in order to take advantage of this tax-free status.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
A financial planner or accountant should be consulted to discuss your options.
What Precious Metals Can You Invest in for Retirement?
It is gold and silver that are the best precious metal investment. They're both easy to buy and sell and have been around forever. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: Gold is one the oldest forms currency known to man. It is stable and very secure. Because of this, it's considered a good way to preserve wealth during times of uncertainty.
Silver: Investors have always loved silver. It's a good choice for those who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinum: A new form of precious metal, platinum is growing in popularity. It's resistant to corrosion and durable, similar to gold and silver. However, it's much more expensive than either of its counterparts.
Rhodium: Rhodium is used in catalytic converters. It is also used for jewelry making. It is relatively affordable when compared to other types.
Palladium: Palladium has a similarity to platinum but is more rare. It's also more affordable. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
Are You Ready to Invest in Gold?
It depends on how much you have saved and if gold was available at the time you started saving. Consider investing in both.
In addition to being a safe investment, gold also offers potential returns. Retirees will find it an attractive investment.
Most investments have fixed returns, but gold's volatility is what makes it unique. Therefore, its value is subject to change over time.
This does not mean you shouldn’t invest in gold. This just means you need to account for fluctuations in your overall portfolio.
Another advantage to gold is that it can be used as a tangible asset. Gold is much easier to store than bonds and stocks. It can also be transported.
You can always access your gold if it is stored in a secure place. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
It's also a good idea to have a portion your savings invested in something which isn't losing value. When the stock market drops, gold usually rises instead.
Gold investment has another advantage: You can sell it anytime. As with stocks, your position can be liquidated whenever you require cash. You don’t even need to wait until retirement to liquidate your position.
If you do decide to invest in gold, make sure to diversify your holdings. Don't place all your eggs in the same basket.
Also, don't buy too much at once. Start by purchasing a few ounces. Then add more as needed.
It's not about getting rich fast. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
Guidelines for Gold Roth IRA
Starting early is the best way to save for retirement. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. It is essential to save enough money each year in order to maintain a steady growth rate.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles allow you to make contributions without paying taxes on earnings until they are withdrawn from the account. They are a great option for those who do not have access to employer matching money.
Save regularly and continue to save over time. You will lose any potential tax advantages if you don't contribute enough.
By: Terence Zimwara
Title: UAE Virtual Assets Regulator Confirms Cooperation from Islamic Coin Issuer
Sourced From: news.bitcoin.com/uae-virtual-assets-regulator-says-islamic-coin-issuer-has-cooperated-fully/
Published Date: Sat, 25 Nov 2023 11:30:14 +0000