Crypto.com Prepaid Card and Crypto Exchange Thread

Sounds like a PITA with all the required exchanging going on. Technically you have to report capital gains/losses on your crypto->fiat and crypto->crypto exchanges. So you have to keep track of every single exchange, calculate adjusted cost base in C$ etc.

Keeping my eye on this, but crypto and the whole process of switching around money makes my head hurt.

Bull Dog wrote: ↑ @Eleventeen referral bonus is 50 USD which is about 10 MCO

At the time I heard about it/signed up, year and a bit ago - the referral bonus depending on the referrers card tier. I found someone with the 2nd highest tier card, so I got 80 USD in MCO (But it actually credited in CRO). The top tier black card offered 100 usd, lowest offered 50 usd.

Probably be discontinued now and everyone just gets 50 MCO equivalent.

rhw123 wrote: ↑ Sounds like a PITA with all the required exchanging going on. Technically you have to report capital gains/losses on your crypto->fiat and crypto->crypto exchanges. So you have to keep track of every single exchange, calculate adjusted cost base in C$ etc.

Maybe technically legally true.. However as crypto.com is registering with fintrac and will follow all canadian regulations, they may eventually automatically upload your capital gains info to the CRA like banks currently do to make the process pretty seamless.

Overall atm, ya it's a bit of work to get it all set up at the moment.
Once it's officially launched in canada, I think it will actually be easier than your average bank to open and fund.. As there KYC tech is really cool and high tech/secure - analyzes your passport/drivers license vs your face.. So some advantages there:
- No sending in ID's manually, no need to go to canada post or a bank branch. (They did mention early adopters will have to send proof of address, but they may be able to bypass that later too ... especially if your address on your driver's license matches)
- Can be more trusted in the KYC chain for full limits without answering possibly obscure credit union questions.
- Should be easy to fund via linking any canadian bank account . (While the banks can block card transactions, they have no ability and I'd bet, no legal right, to deny you from sending EFTs. eTransfers may also become a thing, though that they likely can block (just blacklist any of crypto.coms email addresses)

Ultimately they are a well trusted singapore fintech, so they have certainly have the resources and money to make the canadian integration work well. Just have to wait and see.

I think it's the right step forward anyways for becoming a more high tech country. Our legacy banks are too old and too set in there ways to adopt crypto, so a hybrid fintech that supports visa and crypto I think is a great start to get us on the path. Some of the more forward thinking banks/card issuers im sure won't block crypto purchases anyways, EG: Brim might be fine atm, as they aren't tied to any big 5 and are a fintech.

Bull Dog wrote: ↑ I think if I get started in crypto I'll keep track of my crypto costs, and just declare income at tax time for whatever net profit I made from converting crypto to fiat currency during the year. And it would make sense if I had some crypto that I was losing money on to sell enough of it at a loss before the end of year to even things out.

The cashback from the MCO card is just earned as MCO coins so I wouldn't declare that unless I sold them into fiat currency. No one I know declares cash back on Canadian credit cards as revenue.

I recommend you read https://www.canada.ca/en/revenue-agency ... guide.html.

Basically, all of the below are examples of where you possibly generate a capital gain or loss.

Bull Dog wrote: ↑ You can also fund Crypto.com by purchasing tusd or pax crypto coins within the app with your bank debit card, which won't incur you any cashback fees and for which crypto.com is not charging any upcharge for at the moment, and switching them within the app to fiat currency.

titaniumtux wrote: ↑ Alternatively just transfer accrued MCO into MCO prepaid card balance, which is in fiat...then spend it and earn 1-5% cashback on that, too.

Eleventeen wrote: ↑ They actually paid me my 80 MCO sign up bonus in a really confusing way:
In CRO - their "chain" coin..

<snip/>

So yea i think the advertising that they reward/comp you in MCO is outdated, and they actually just do CRO into the exchange now. (Easy enough to exchange the two with no fee's anyways so doesn't really matter unless you forget to do it, just confusing)

Bull Dog wrote: ↑ Or I guess most people could cash out in pounds or Euro transferred to Transferwise Multi Currency account, but as you know they deactivated my account and stole my money ( to date ) .

Bull Dog wrote: ↑ @rhw123 That's another reason not to keep foreign currency in your Transferwise Multi Currency Account or Revolut account- if it goes up in value that's a capital gain and should be taxed.

Capital gain if converted back to CAD.

Bull Dog wrote: ↑ @rhw123 That's another reason not to keep foreign currency in your Transferwise Multi Currency Account or Revolut account- if it goes up in value that's a capital gain and should be taxed.

Typically not an issue unless you actively trade back and forth to make a profit. If your US dollars go up in value you can still simply spend them in the US without generating a single taxable event.

It's not really comparable because cryptocurrencies are commodities, not currencies. Exchange one for another and you have a taxable event. Exchange one for money and you have a taxable event. And unlike real currencies you can't really spend cryptocurrencies so "spending" always involves exchanging.

"With the prepaid card, the 500 MCO stake that offers free Netflix and Spotify for life is an even more impressive offering than Canadian chequing account signup offers"

Assuming you keep the stake, correct?

jcharch wrote: ↑ "With the prepaid card, the 500 MCO stake that offers free Netflix and Spotify for life is an even more impressive offering than Canadian chequing account signup offers"

Assuming you keep the stake, correct?

Yes, this is true.

If you remove the stake, the card still earns cashback but at a reduced rate, and you'd lose the freebies. After the 6 months term, you have the option to withdraw, but it'd nerf the card.

In comparison, a lot of ppl keep min balance in a big bank chq account just to get AF waiver on a premium CC, so I consider the 500 MCO stake to be a better deal.

@Bull Dog you should have staked the 500 MCO earlier.

Now the staking tiers are in CRO, and at substantially higher amounts when converted to CAD.

I may still go for the 4% card, but getting there will require much more effort than I had expected.

Titaniumtux,

Start looking at this recently after your post. I was considering this but now looks like they lost trust.

Good analysis here


Also there is a good discussion here
https://www.reddit.com/r/Crypto_com/com ... _cro_swap/

realinvestor101 wrote: ↑ Titaniumtux,

Start looking at this recently after your post. I was considering this but now looks like they lost trust.

Good analysis here


Also there is a good discussion here
https://www.reddit.com/r/Crypto_com/com ... _cro_swap/

A lot of mixed opinions.

Not quite a "pump and dump". You can lock in for the $50 USD in CRO referral incentive, but min buy-in is clearly much higher now. Wouldn't be worth it for the referral bonus alone (although it doesn't hurt).

After six (6) months, you can withdraw, but if you withdraw your CRO...your card will lose most of its perks. That mean if you really must cash out, then downgrade to a card one tier lower to mobilize some of your coins.

I have mixed thoughts on this myself. I really wanted to upgrade to the next tier in about a month's time. Now it'll take me longer than a month to reach that goal. Still worth it IMO, since my CRO has more than doubled in value since I bought in, and I'd otherwise be staking at 18% annual return in weekly dividends anyway.

Bull Dog wrote: ↑ @Titaniumtux the crypto world is pretty insane with its ups and downs. I was looking at the Spend debit card which isn't available in Canada, and probably never will be, which is crazy since it is headquartered downtown Toronto. The spend coin went down 98% from when it was issued, since the Spend company decided to concentrate on business e-commerce with their crypto. The holders kept saying it was going to "pump" after being down to almost zero, since the company was actively recruiting business clients, and sure enough last week it went up 700% If I had even bought 500.00 I'd be at 3500.00 right now.

Nice find!

Bull Dog wrote: ↑ I didn't buy any

FOMO at its finest. Don't sweat it, there was no way to predict that spike. If you wanna intercept the next one, be on the lookout for more Altcoins...they can start off like penny stocks and some may sky-rocket.