The Swapper platform is a legally registered Qualified Intermediary service that will allow digital currency investors to carry out 1031 like-kind exchanges on your cryptocurrency with all the benefits of blockchain technology. While traditional Qualified Intermediary services rely on e-mail, snail mail and require burdensome paperwork, Swapper will allow instant transactions designed for volatile conditions, privacy through encryption and robust security. At the same time, Swapper will generate a record of transactions on the Swapper blockchain that will make it easier for investors to properly track, prepare and file their necessary paperwork.
How does swapper.io build on the current service? Swapper is 1031-exchanging incorporating a blockchain VIA tokenization. The swapper blockchain will be coordinated with the swapper.io platform to explore the blockchain and each unique transaction and document it on an individual account basis. Those records will be stored but accessible to clients via reports made that are associated to their accounts. Their records will be stored as private hashes for privacy purposes but can be produced as reports that act as proof of transaction. While in escrow, the clients’ funds are held in an FDIC Bank of America bank account that is bonded and insured for up to $1 million dollars per client. This will also then in effect be the first token creation event incorporating FDIC insurance and protection into the world of cryptocurrency.
See their white paper here, https://swapper.io/Swapper_White_Paper.pdf
Why is the blockchain perfect for this service? Utilizing the blockchain is more effective and efficient, no giant servers needed, no risk of lost documents or filings, the ability to incorporate swapping with cryptocurrency which is a market that has produced immense amounts of profit and continues to grow. Swapper, as the service progresses, will also eventually be upgraded to perform these actions via smart contracting which will automate much of the process and potentially allow integration into other exchanges such as Coinbase or Kraken etc.
How will this benefit the cryptocurrency space? Capital gains taxation is a topic that’s talked about little but growing in importance with cases like Anonymous Coinbase Users VS. The US department of Treasury happening as we speak. Let’s not forget also that tax season is just around the corner for the 2nd most profitable year in cryptocurrency history. 2017, depending on how you account it, pales only to 2013 in terms of capital profit created since inception and the difference now is that there’s tax guidance this time. Bitcoin users expecting things not to be different than they were in the spring of 2014 in terms of tax obligations, may be unprepared for what awaits us all this time. Another unique and interesting tool Swapper offers usersnis the ability to bypass withdrawal and exchange limits of crypto investments into fiat. Most exchanges have a daily and/or weekly limit which can unwantedly leave users stuck with cryptocurrency in a volatile market.
Swapper.io will allow users, if they choose, to legally defer their immediate tax obligation so they may re-invest and grow their nest egg. The swapper platform will also be asset neutral meaning real estate transactions or art sales may utilize the service and benefit from the swapper blockchain on their 1031 dealings as well.
The project is expected to be a popular and highly utilized tool in the crypto currency realm starting at the beginning of 2018 for this year’s tax season and it will be interesting to see how it affects people’s tax bills after this record year for bitcoin and altcoins across the board.
To participate in the Swapper early bird ITO or to find out more please visit https://Swapper.io
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