I'm carrying on such a distressing doubt. I'd like to make use of Trust Wallet, to count on an additional software wallet where I own the private keys, in the case of my current in app wallets would fail. But I know Trust Wallet is owned by Binance and Binance began to ask me third level KYC, what in my country results in an arduous process. So I'm afraid, if I make use of Trust Wallet, I won't be able to withdraw my funds (to my local exchange that's able to convert cryptocurrencies to FIAT and then send the money to my bank account) because I didn't complete the third level KYC asked by Binance. Some ideas?
Is it compulsory the third level KYC on Binance to use all Trust Wallet features?
- Thread starter Pousinha
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- #3
Yes, I'm yet using in-app hot wallets (AW, bitcoin.com and I think I'll try electrum too) and I'd like to add Trust Wallet to them, but I'm worried because this latter is Binance property and Binance requires an arduous third level KYC.
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- #6
I did yet second level KYC. I yet had before Binance asked me for the third level no mind the small amount I always moved. I had left my Binance account to zero during a turbulence in June 2022, so I preferred by far an in-app wallet giving me the ownership of the private keys. And then Binance asked for my tax report. I can imagine it strongly depends on the country. In mine, third level KYC became compulsory to even move an amount under 100 dollars. And I'm doubtful about Trust Wallet because it's a Binance property. My tax report contains several pages, so it's not that easy an upload to finish the third level KYC Binance requires in my country.
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- #8
The thing is I live in a very stressful country in terms of bureaucracy. Having Binance headquartered in my country too, maybe a governmental rule is involved in such requirements. If TrustWallet weren't a Binance property, I could make its use without worrying about.
Even though Trust wallet belongs to the Binance exchange, Trust wallet is independent, meaning the rules are different from Binance as a crypto exchange. If Trust wallet requires KYC only ID card, you can try Trust wallet in small amounts, and use coins that have low transaction and blockchain fees. Tax calculations will be calculated on the local crypto exchange when you convert to local money.
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- #10
OK, thank you! In any way, my country is facing a taxation issue cause a new tax law should begin to work for the next month: staked cryptocurrencies out of local exchange will face a 15% taxation since 6000 reais when pumps happen. And in-app wallets are considered foreign exchanges by the local government (it's a nonsense, I know: that's when a government produces laws about subjects it hasn't the least knowledge).
Currently almost all countries have taxed crypto, but in general tax is imposed on capital gains, so if you make a loss you are not subject to tax, but in my country if you buy you are subject to VAT of 0.22% of the transaction value, whereas if you sell you are subject to Income Tax of 0.2% of the transaction value ( no matter profit or loss). That's why I avoid exchanging crypto for fiat money on local exchanges.
