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AdamHDavis

Will I be able to buy fiat with un-KYC'd XRP in 10 years?

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How will current hodlers of #XRP be able to legally redeem their XRP for fiat in the future if there is no valid KYC/AML trail for the 2017/2018-era crypto exchanges which they purchased their XRP from originally?

My concern is that fiat Gateways in the future will not accept XRP which does not have a complete KYC documentation trail for each address which it has been held by. 

Or do the KYC/AML laws only require that the individual / account who wants to buy the fiat IOU's provide KYC information about themselves to that Gateway?

Thanks for any help in better understanding this.

https://ripple.com/build/gateway-guide/

Edited by AdamHDavis

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19 minutes ago, AdamHDavis said:

How will current hodlers of #XRP be able to legally redeem their XRP for fiat in the future if there is no valid KYC/AML trail for the 2017/2018-era crypto exchanges which they purchased their XRP from originally?

My concern is that fiat Gateways in the future will not accept XRP which does not have a complete KYC documentation trail for each address which it has been held by. 

Or do the KYC/AML laws only require that the individual / account who wants to buy the fiat IOU's provide KYC information about themselves to that Gateway?

Thanks for any help in better understanding this.

https://ripple.com/build/gateway-guide/

I can't imagine a situation in which xrp or any crypto bought can not be sold for fiat due to being purchased prior to kyc/aml enforcement. The implications of this could spell out the end of the market. 

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If its being sent to a US bank account, they already know you. If you discuss with them prior to a large wire, they should let you do it. If they don't have necessary docs, you will provide them so they can check the boxes. This happened with hedge funds a few years back. Anyone invested in off shore vehicles prior to AML requirements had to provide a stack of documentation if they ever wanted to redeem. After that, it wasn't a problem. I don't believe it to be too different here.

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Criminals, terrorists, money launderers, drug runners, illegal weapons dealers generally don't pay taxes on the income they've earned.  Pay your taxes each year with proof of original purchase/swap from the exchanges and report it to the IRS, and pay your taxes.  I think you'll be feeling quite quite safe about your XRP not being recognized as a legitimate and legally acquired asset. 

In other words, it's important to establish a clear chain of title for onesself if you feel that this is a matter in question. 

 

Edited by xrphilosophy
Clarification

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It seems the newbie is a great example of the new crop of crypto investors. The new group that is getting to crypto to FUD everyone without offering any insight into the community. You can really spot a newbie with the comments they post. Unlike the ole days of relevant questions and a common goal for all of the early adopters. Just saying...

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Already discussed this with my bank.  They know me, they know I have invested in crypto.  I have been told there will be no problem when it comes time to wire funds back to them.

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On 05/03/2018 at 8:55 PM, XRPonTheIronThrone said:

If its being sent to a US bank account, they already know you. If you discuss with them prior to a large wire, they should let you do it. If they don't have necessary docs, you will provide them so they can check the boxes. This happened with hedge funds a few years back. Anyone invested in off shore vehicles prior to AML requirements had to provide a stack of documentation if they ever wanted to redeem. After that, it wasn't a problem. I don't believe it to be too different here.

Thanks for this explanation!

Ok, so it looks like this would cover the transaction from a fiat-crypto exchange (like Coinbase today) to a conventional bank. Would there be any concerns related to that fiat-crypto exchange (the fiat Gateway on the Ripple network) though? 

That is, will this Gateway just accept XRP from anywhere and give you fiat IOU's no questions asked? 

I guess I'm trying to get my head around the scope of KYC/AML rules - is the case that as long as the government knows who is receiving the money, they are satisfied, or do I need to demonstrate that I have received the money from a positively identified source as well? (Which would be impossible for XRP purchases from a crypto-only exchange like Binance, which does not have any KYC requirements).

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In 10 years you will have no need to exchange your XRP or fiat. Either it will be worthless or it will be so widely accepted that you will be spend it anywhere.

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https://www.accenture.com/t00010101T000000__w__/de-de/_acnmedia/PDF-44/Accenture-Ripple-Reisebank-video-transcript.pdf

16 hours ago, AdamHDavis said:

Thanks for this explanation!

Ok, so it looks like this would cover the transaction from a fiat-crypto exchange (like Coinbase today) to a conventional bank. Would there be any concerns related to that fiat-crypto exchange (the fiat Gateway on the Ripple network) though? 

That is, will this Gateway just accept XRP from anywhere and give you fiat IOU's no questions asked? 

I guess I'm trying to get my head around the scope of KYC/AML rules - is the case that as long as the government knows who is receiving the money, they are satisfied, or do I need to demonstrate that I have received the money from a positively identified source as well? (Which would be impossible for XRP purchases from a crypto-only exchange like Binance, which does not have any KYC requirements).

 

 

As i think about this more, it probably matters more about why you are accepting crypto/digital assets, the amounts, and if you are paying your taxes. If you aren't paying the Piper and you're moving large amounts, i think you may get more special treatment and KYC/AML may apply to you more so than others. Silk Road being shut down was a prime example of how sophisticated regulators/law enforcement were willing to be to trace BTC back to Dread Pirate Roberts. This is all still very new and regulators have even stated they want regulation but not too much as to stifle innovation. I think the focus now is that all exchanges have KYC/AML until more and more people use crypto to the point where you can pay for normal goods and services out of a digital wallet and forgo the need for a debit card/cash (and its feasible to be unbanked). Until then, the exchanges are in the cross hairs. Japan and Korea are prime examples. But proving the source to be KYC/AML? I do not know for certain, there are only certain instances today where that happens.  

Edited by XRPonTheIronThrone

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