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The ease with which digital resources are used to make land purchase payments has been more complex than expected by crypt holders. Most real estate agents and mortgage loan sellers have taken a keen approach to accepting digital currencies from their previous position. This is mainly due to the uncertainty of the regulation and the inadequate procedures of due diligence of the market to eliminate the proceeds of money laundering.
Uncertainty in 2019 CryptoEconomics
With only a week until 2019, cryptographic markets are showing signs of improvement. This could mean new levels of support for altcoin prices as we plunge deeper into the year or continue to run if the upward trend is not sustained. The trend in land prices, on the other hand, remains reliable for a couple of macroeconomic factors to react. It is clear that the two trajectories of 2019 remain uncertain as the crypt has a history of high volatility.
According to the CEO of Propy, Natalia Karayaneva, the main reason why real estate agents are moving away crypto the payments are the familiarity already existing with the fiat that most people prefer to date. The CEO also explained that great crypto transactions are exposed to hacking that could cost companies a fortune. He added that you should send the amount in small portions to mitigate this risk; a way that stakeholders still have to buy the idea.
Crypto & # 39; s Tax Evasion Myth
Propy is involved in enlightening real estate agents and potential clients on how to do business with crypto-oriented real estate. Karayaneva said that the reference market of the company includes securities and guarantee companies. The two types of companies are responsible for issuing the property insurance policy and supervising transactions within the real estate sector respectively. He continued to notice strongly that;
"Moreover, when buying real estate using cryptocurrency, it is a taxable event, unlike the myth among some investors that the use of bitcoin will eliminate taxes – it is not true"
So far, Propy has been involved in a couple of real estate deals that have been encrypted. However, the company's main obstacle is guiding its stakeholders on how to deal with legal preparations in the EU and the United States. This did not prevent the company from overseeing the Bitcoin and Ethereum transactions against Fiat in other regions such as Ukraine.
Inefficiency related to Crypto's trust
A good number of agreements have been left on the table due to the problem of trust in cryptocurrency in which background checks are almost impossible. Recently, the founder of Mycro.Jobs, Bruckmann Andre had an offer for a guest who wanted to rent one of his properties during the Christmas season and pay in the crypt. However, the agreement was not successful as Bruckmann was skeptical about the specifics of the client concerned. According to him, the situation would have been very different if there had been a means of verifying the legitimacy of the client.
The Volatile Crypto Market
Other stakeholders in the Fin Tech arena who have commented on why the real estate sector will not collect crypto before include Stefan Neagu. The co-founder of the digital identity management system has supported this vision with the point of a volatile market which in history has not been preferred by investors. This simply means that the most likely solution was an introduction of stable currencies supported with the major currencies.
The other factor that Stefan pointed out with the lack of an efficient due diligence procedure or an environment within the cryptographic markets. It argues that sources of funds placed in digital resources can be problematic when it comes to declaring such proceedings to regulatory authorities. Therefore, this undermines many participants in the cryptographic market concerned, a trend that will probably continue until clear rules are established.
Know your client (KYC) and AML practices in Crypto
On the basis of current statistics, Neagu's opinion was that most of the potential real estate buyers and tenants were not satisfied with encrypted transactions. As far as possible, the parties involved must pass the KYC / AML procedures and requirements required for such transactions. Neagu summarized his feelings on this subject with some insights;
"With the right tools or applications, the owner may be able to control the source of the funds, but even so, there are many additional steps needed to access Crypto. I assume there are not many people [real estate owners] who want to go one step further only to accept cryptography as a means of payment ".
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