The Nigerian fintech startup, Vella Finance, has recently made the decision to stop offering crypto-related services and instead shift its focus to providing banking services specifically tailored to small and medium-sized businesses. Co-founder Tolu Adedayo stated that this strategic move was based on business reasons and the need to better serve their target market.
In a recent announcement, Vella Finance informed its users and subscribers that it will no longer be offering crypto-related services starting from October 30th. The decision to pivot away from crypto was driven by the realization that providing both crypto and banking services simultaneously is not feasible. According to Adedayo, the company's mission to serve businesses within regulatory confines and leverage user and transactional data made it logical to transition into an end-to-end banking system.
Adedayo further explained, "We're going fully into SME Banking. Banking requires playing in regulatory confines. We already serve businesses from the onset backed by user and transactional data. It just makes sense to offer an end-to-end banking system to better serve them."
While interest in digital assets like bitcoin and tether appears to be on the rise, Vella Finance's decision to drop crypto services is a strategic move focused on capitalizing on the growing demand for banking services in the small and medium-sized business sector.
Rising Nigerian Crypto Interest
Interestingly, Vella Finance's decision comes at a time when Nigeria is experiencing a surge in crypto transaction volumes. According to a Chainalysis report, Nigeria is one of the only six countries in the top 50 globally where crypto transaction volumes have grown year-over-year. Additionally, the rapid depreciation of Nigeria's local currency is also contributing to the increased interest in crypto assets.
Despite this apparent interest in crypto, Adedayo remains confident in the company's decision to shift its focus solely to banking services. He revealed that Vella Finance has plans to introduce new features that will solidify its position in the business banking space.
As Vella Finance withdraws from the crypto scene, it aims to enhance its offering and provide a comprehensive banking solution tailored to the needs of small and medium-sized businesses. This strategic decision reflects the company's commitment to delivering top-notch banking services within the regulatory framework while leveraging its existing user and transactional data.
What are your thoughts on Vella Finance's shift away from crypto services? Let us know in the comments section below.
Frequently Asked Questions
How is gold taxed within an IRA?
The fair market price of gold when it is sold determines the tax due on its sale. When you purchase gold, you don't have to pay any taxes. It isn't considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
You can use gold as collateral to secure loans. Lenders look for the highest return when you borrow against assets. This usually involves selling your gold. It's not guaranteed that the lender will do it. They might just hold onto it. Or they might decide to resell it themselves. Either way you will lose potential profit.
So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. You should leave it alone if you don't intend to lend against it.
Are gold investments a good idea for an IRA?
If you are looking for a way to save money, gold is a great investment. It's also a great way to diversify your portfolio. But gold has more to it than meets the eyes.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is often called “the most ancient currency in the universe.”
But unlike paper currencies, which governments create, gold is mined out of the earth. That makes it very valuable because it's rare and hard to create.
The supply and demand for gold determine the price of gold. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. Gold's value rises as a result.
The flip side is that people tend to save money when the economy slows. This leads to more gold being produced which decreases its value.
This is why investing in gold makes sense for individuals and businesses. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
You'll also earn interest on your investments, which helps you grow your wealth. In addition, you won’t lose any money if gold falls in value.
Can I buy Gold with my Self-Directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. You can also transfer funds from an existing retirement fund.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts are financial instruments based on the price of gold. You can speculate on future prices, but not own the metal. However, physical bullion is real gold or silver bars you can hold in your hands.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Guidelines for Gold Roth IRA
You should start investing early to ensure you have enough money for retirement. As soon as you become eligible, which is usually around age 50, start saving and keep it up throughout your career. It is important to invest enough money each and every year to ensure you get adequate growth.
You may also wish to take advantage of tax-free investments such as a SIMPLE IRA, SEP IRA, and traditional 401(k). These savings vehicles let you make contributions and not pay taxes until the earnings are withdrawn. They are a great option for those who do not have access to employer matching money.
Savings should be done consistently and regularly over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
By: Terence Zimwara
Title: Vella Finance Drops Crypto Services to Focus on Banking for Small and Medium-Sized Businesses
Sourced From: news.bitcoin.com/nigerian-fintech-startup-vella-finance-drops-crypto-related-services/
Published Date: Tue, 31 Oct 2023 11:30:26 +0000