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Cryptocurrency withdrawal 1: Withdrawal from Taiwan exchange (domestic income)
Due to recent feedback from many community users about MAX Exchange, the fund risk control review period is too long. If users are worried about their funds being stuck, you can refer to another exchange in Taiwan: Bito
Using Taiwan Exchange is currently the most convenient channel for cryptocurrency withdrawals. If there are no tax considerations or the amount is small, it is recommended to directly use Taiwan MAX Exchange to withdraw Taiwan dollars.
Steps for withdrawing NT$ from MAX Exchange:
Transfer Cryptocurrency: Transfer your cryptocurrencies to the MAX Exchange Wallet
Trade to Taiwan Dollars: Convert your cryptocurrency holdings to TWD
Withdrawal of New Taiwan Dollars: Bank account required
Waiting for arrival: usually within 1 – 3 working days
The current TWD withdrawal fee from MAX transactions is NT$15 per transaction. Although this method of withdrawal is faster, this withdrawal method will be regarded as "domestic income" and will be included in "general income tax."
If you want to include the "basic tax amount" with a higher tax-free limit, you need to use overseas withdrawals.
Due to the recent risk of C2C/P2P receiving illegal funds, it is less recommended for users (accounts may be locked)
Key points of overseas cryptocurrency withdrawals (overseas income)
Tax considerations: Compared with directly converting cryptocurrencies into New Taiwan Dollars, overseas USD withdrawals provide investors with more flexible tax planning space.
Exchange rate advantage: As the world's major reserve currency, the U.S. dollar has strong stability and liquidity, which can reduce risks caused by exchange rate fluctuations.
Regulatory uncertainty: Since cryptocurrency-related regulations are still in the development stage in many countries, regulatory developments are uncertain.
Of course, the most important thing when choosing to withdraw funds in US dollars is tax considerations.
When making USD withdrawals, investors need to pay special attention to tax issues. According to Taiwan’s current regulations, if an individual’s basic income (including overseas income) exceeds NT$7.5 million, the excess amount is subject to a 20% income tax.
The calculation of basic income includes:
Net personal comprehensive income
Overseas income
Specific insurance benefits
Income from unlisted stocks and securities investment trust funds
Non-cash donation amount
Therefore, when making U.S. dollar withdrawals, investors need to consider their overall income and reasonably arrange the time and amount of withdrawals to optimize tax planning.
Cryptocurrency withdrawal 2: USD withdrawal via wire transfer back to a bank in Taiwan
Major platforms: Bitfinex and Kraken.
Bitfinex withdrawal process:
Residential address and bank information need to be verified first
Convert cryptocurrencies from USDT to USD
Select the "Bank Transfer" withdrawal method
Fill in bank information (SWIFT code, etc.)
Please wait 3 – 7 working days for payment to arrive
Kraken withdrawal process:
Convert cryptocurrencies to USD
Select the "Bank Frick (SWIFT)" withdrawal method
Fill in the beneficiary bank information
Usually 1 – 3 working days for arrival
To put it simply, although Kraken has a higher commission for placing orders, since Bitfinex has a minimum withdrawal fee of 60 USD, you can use Kraken for withdrawals if the transaction is within 50,000 USD. For transactions above 50,000 USD, it is recommended to use Bitfinex.
Further reading:
【2024 Bitfinex Greenleaf Lending and Withdrawal Tutorial】
【2024 latest】Kraken Kraken Exchange: USD withdrawal, registration tutorial
Notice:
1. Please do not allow funds to move in and out quickly on the exchange. Please deposit it for at least a period of time before withdrawing it, otherwise there will be a high chance of being risk controlled.
2. Different banks may have different attitudes toward cryptocurrency-related transactions. It is recommended to choose a cryptocurrency-friendly bank.
3. The XREX platform has recently changed the withdrawal bank to a domestic bank, so it is no longer applicable to the declaration of overseas income. Investors need to pay special attention to this change when choosing a withdrawal platform.
Cryptocurrency Withdrawal 3: Transfer Withdrawal, Wire Transfer to Digital Bank
As the policies of governments and banks on cryptocurrency continue to change, users can wire transfer funds to a "cryptocurrency-friendly virtual bank" and then transfer the funds back. This is a relatively safe operation method and is currently the most common route. :
Kraken (GBP) > iFAST > Wise (can be exchanged for USD) > National banks/US stock brokers, etc.
Kraken (GBP) > iFAST > National Banks
iFAST Global Bank is a UK-regulated digital bank headquartered in Singapore that is more cryptocurrency-friendly.
Wise is a very well-known international remittance platform in the world, with a wide range of users and good exchange rates. If you need to perform currency exchange or U.S. stock operations, you can call Wise.
If using iFAST to withdraw funds, users can ask Kraken’s customer service staff to add an FPS remittance channel, and the handling fee is approximately 1.95 GBP.
The advantage of using a digital bank is that they often offer better exchange rates and lower fees, while also providing investors with the flexibility to transfer funds.
1. Never wire U.S. dollars directly from Kraken to Wise. Wise has stricter risk controls for cryptocurrency deposits.
2.iFAST is a newer bank, and the bank can change its risk control policy at any time.
Cryptocurrency Withdrawal 4: Cryptocurrency Payment Card Spending and Withdrawals
Cryptocurrency payment cards are a convenient option for investors who don’t want to convert cryptocurrencies directly into fiat currency. Below is a comparison of two popular cryptocurrency payment cards:
The "related handling fees" of using a payment card are much higher than direct withdrawals. The only advantage at present is that it is convenient for users to directly make daily small payments. If there is no such need, it is recommended to use the method mentioned above to make rent.