Another gift from our EU rulers… From what I understand, exchanges, banks, wallets, they all have to request and store identity data for sender and receiver, from 1 january 2025. Revolut just sent emails about this, saying that they use TRUST as a third party processor for this.
Now, many of us EU fine citizens farm Storj in Kraken and withdraw fiat.
Does this new law applies to Storj as sender and Kraken as receiver, also, for EU citizens?
Did Storj took any masures to put an ID to it’s sender wallet according to this system?
I did’t read the law. So any input is welcomed.
For exchanges in the EU they have to know you. So you are forced to do KYC (at least in Germany).
To do anything with my crypto on binance I had to identify myself with id. And to get extended access to everything (binance earn and I think future trading) I even had to do proof of address with bank statement or other official bill.
It’s pretty strict here
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Yes, I know about KYC on exchanges. They are pretty old requirements.
I was wondering about the part that says the sender must be identified too; in our case Storj Inc is the sender, because it pays us to our wallets on those exchanges.
So Storj must identify itself before the exchange can process the deposit.
This is what I understand.
Storj Labs specifically does not recommend using exchange addresses to receive your payouts, for various reasons, so now it looks like you have yet another reason why not to do this. I don’t think it should be on Storj to make changes to accommodate users who specifically do not follow the Storj guidance. On the other hand, the payouts are done from a specific Storj wallet, you may inform your local tax authorities or the exchange you are sending the STORJ tokens to that the address belongs to Storj Labs.
Note that this is not tax advise, just my personal opinion.
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I think you meant note otherwise it would mean 2 negatives make it a positive i.e. It is a tax advice.
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I don’t believe this is so simple. But we will wait and see if Kraken demands something for EU customers.
As long as Storj token it’s just an utility token, using more than one wallet to move the founds, meaning another wallet besides an exchange wallet, it’s unpractical and costly.
On one hand Storj sais “use your own wallet” which makes sense if you want to hodl, on the other hand, Storj sais “it’s just an utility token”, so exchange it to fiat when you receive it, because hodl it it’s futile.
So which one is it?
This strategy of “we won’t assume anything about this project regarding SNOs needs, just use what you have and your personal wallet, because the token is an utility token and the storagenode needs server workload proof hardware” gives me contradictory thoughts about Storj Inc.
More realistic advises and approaches to SNOs needs would be great… just my opinion.
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This is not a valid nor sustainable approach. All recommendations to avoid exchanges is not rooted in reality, and are not even in SNO’s best interests; it’s CYA advice STORJ has to issue as a company, and we all know it.
It’s like saying “we don’t recommend using banks, send money in the envelope and store it in the mattress, that’s our guidance; if you want to send money to the bank – it’s on you, we don’t recommend it, banks can default, or ban your account, or you forget your login credential, – ‘not your mattress – not your money’”.
Exchanges are the future, not users messing with passphrases, addresses, wallets, zksyncs, etc. It’s unreasonable to ask SNO to have to figure out all the crytocurrency implementation details when companies exist that take this burden off customers, allowing to access the money with a username and a password, like a normal person.
We already do a huge favor to storj by accepting and putting up with this nonsensical token instead of USD or EUR. Don’t push it. Storj does not get to dictate how vendors are paid.
As with any third party, there is a risk involved. Banks usually are more trustworthy than exchanges. You may recall the many instances an exchange just disappeared. Banks often don’t disappear so easily.
You may go and find another “customer” that takes your storage and pays you in EUR or USD. I think Storj can dictate how their providers are paid.
I have an alternative offer for you. I’ll give you a wallet address that you put on your nodes and we make a contract that I’ll pay you the EUR value of every STORJ that comes to that address - 20%. I’ll need your name, address and Bank Account information for that.
Maybe I’m missing what you are trying to say, but:
- Why would I agree to such an expensive contract, when exchanges do it 20x cheaper?
- Why would I make a contract with you, an entity who does not operate in my country, with unknown number of customers, and no accountability?
The point is moot: why should I worry about exchanges disappearing with all of $10 storj payment, let alone precisely within the two minutes the money is in their custody? (it was their long con all along – to disappear with my $10, I won’t be able to financially recover from that…)
No, I can decide not to share storage with anyone, including storj, because pennines they pay don’t justify any amout of time figuring out the intricacies of cryptocurrencies.
See the problem with this thinking?
So if storj want vendors – they better find a way to remove friction from paying said vendors.
(Sorry in advance that I make ads biased to binance)
Binance has a maker taker fee of just 0.1% for any trade made in the spot marked. So it’s waaay cheaper.
And you can even do a SEPA transfer for free on binance (at least if you life in the EU)
So if I get like 100usd from StorJ all I have to pay is the 10 cents fee for binance.
So the 20% is a really bad deal.
And it’s the biggest exchange that exists at the moment (at least to my knowledge)
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I’m offering an alternative. I didn’t say it was the better one. If you trust me is up to you. Same with an exchange that where you do KYC. I can make a website, if that makes it more trustworthy. I operate in Germany. Does Kraken operate from you Country? I don’t think so.
If I look at the available Storage, I think currently Storj does not need more vendors. Also who says the available ones can’t offer more storage?
Of course it is. The discussion was about not using an exchange address as payment address. Alternatives are definitely not cheaper. That’s why people use that. Learning about crypto and dealing with it costs time and depending how you value your time it’s also way more expensive. The third option, the one I was proposing, is having a third party deal with it and save your time, but in exchange it costs you more.
Similar to hiring a real estate agent to find you a nice house. That is obviously more expensive than looking for it yourself. But you may not get the same result.
I’m confused. The exchange is that third party that saves you time. And it costs less.
The goal was not to invent the most expensive and least efficient way possible; its was the opposite. And exchanges win by large margin
- significantly simpler to use than any alternative.
- significantly cheaper than any alternative.
This analogy does not help. Of course you will find better house without real estate agent. It’s not their job to find you a house… Paying someone to find a house for you will yield worse result and cost more. “Saving time” this way before dropping several mill is literally the definition of being penny wise pound foolish. but never mind, let’s not go too deep into this broken analogy.
We have been supporting users for about a decade now. We have seen exchanges and online wallets vanish over-night and we have had users ask us what they can do about their lost tokens.
We always suggest you store your tokens in a wallet you control so the above doesnt happen to you. We dont recommend exchange wallets because you dont control them.
I totally understand the argument about gas fees from your wallet to an exchange when you want to transfer to fiat. Honestly, part of the problem with that is the high prices gas is often at. If they would get gas down to cents it would be less impactful. But here we are.
When it makes sense for the company to provide guidance on new laws or changes, we will post that in announcements. For now, your use of Exchange shared wallets is at your own risk.
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Totally agree. And the risk can be reduced to practically zero by not storing any money at exchanges any longer than necessary. Receive payout → swap → withdraw cash. Probability of exchange vanishing within that 2 minutes times storj payout == 1.0e-37.
While I agree that drastically lowering gas fee would be nice, exchanges can and do add more value than just absorbing fees: absorbing users from figuring out wallets and risking losing private keys, and creating tax statements for you.
There is a not zero probability that they are lock you in on Withdrawal. My friend now exactly in this situation. He was able to convert and submit a withdrawal request. Passed a month, but money still pending.
Not all exchanges are equal and treating their customers as customers.
I can disclose the name of this shitty exchange - everyone must not consider them as an option - BiBox. They are clearly scammers. Once logged in, you will be never able to login back unless you download their custom APK-spy which they call application.
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