$AST Airswap should be steered clear of by U.S. investors because the IRS requires backup withholding when paying individuals with crypto currencies. I noticed that AST has been one of the biggest gainers in the crypto world in the last couple days. So I decided to look into what this platform does, and when I saw the Airswap method of allowing peer-to-peer transfers on the Etherium network, my tax side just jumped up with a big "Nooooo!".
Per the guidelines the IRS issued about Bitcoin in 2014 crypto currencies are treated as property rather than a currency, and when you transfer property to another individual you are required by the IRS to obtain the tax identification number of that person, and if they are not a U.S. citizen to withhold backup withholding of 24%. If you do not make this backup withholding, you can be on the hook to pay this to the IRS if audited!
Thus I implore anyone out there who is a U.S. citizen and trading in crypto currencies to steer clear of ANY peer-to-peer trading platforms. The risk is monumental when you consider you could owe that for each transaction... Could be far higher amount owed than the amount of crypto currency in your accounts.
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For more information see:
https://www.irs.gov/pub/irs-drop/n-14-21.pdf
https://www.irs.gov/taxtopics/tc307