You Can Use Wise to Withdraw Fiat From Select Crypto Exchanges
CoinJar users can now use Wise to cash out of crypto into their local currency. Wise is a global technology company specializing in international money transfers. The service has now expanded to include fiat withdrawals from select cryptocurrency exchanges.
This development should streamline the process of moving funds from the crypto world and traditional banking systems.
Wise account needed
CoinJar spoke to a spokesperson at Wise who explained the process to us. They said that before you can withdraw fiat from a crypto exchange, you'll first need to sign up for a Wise account.
To join up to Wise, you need to show ID and go through the sign-up process.
Once set up with Wise, you can then connect the account to your CoinJar account. Then you can convert your crypto to your local fiat currency on CoinJar, and you can withdraw the money into your Wise account.
Currently, Wise says they don’t support fiat transfers from your Wise account onto exchanges, it only facilitates withdrawals. However, some customers have reported successfully depositing funds from their Wise account onto CoinJar.
Wise and crypto exchanges
Not all exchanges are eligible. Wise currently only supports fiat transactions with cryptocurrency exchanges registered in the UK or the EU, with the exception of Binance. You can’t withdraw fiat from Binance to your Wise account.
Australian exchanges and Wise
In Australia, Wise supports CoinJar for fiat withdrawals, because CoinJar is a UK-registered exchange, as well as being an Australian exchange.
Wise can do this now because it is a direct member of the Australian payment systems, allowing for smoother and more efficient transactions for its users.
Crypto is evolving
The cryptocurrency industry is constantly evolving, and regulations surrounding fiat-to-crypto transactions are subject to change. So keep an eye on announcements from Wise.
Wise's expansion into the cryptocurrency space seems to reflect the growing demand for seamless integration between traditional finance and digital assets.
Frequently asked questions
What is CoinJar and how does it relate to the broader cryptocurrency market?
CoinJar is a cryptocurrency exchange which operates in Australia and the UK. It allows users to buy and sell cryptocurrencies, including the first cryptocurrency, Bitcoin, which emerged in 2009.
CoinJar is just one player in the vast cryptocurrency market, which consists of various exchanges, wallets, and other financial services related to digital assets.
Why would someone want to cash out of CoinJar and into a Wise account?
Many retail investors who hold cryptocurrency in CoinJar might want to convert their financial assets (cryptocurrencies) into fiat currencies like AUD, USD, GBP or EUR. Wise offers a convenient way to store and spend fiat currencies globally via their multi-currency card.
Can I directly transfer cryptocurrency from CoinJar to my Wise account?
No, cryptocurrency cannot be directly transferred to a Wise Card. Cryptocurrencies exist on a distributed ledger, which is different from the systems that traditional financial institutions use.
To get fiat currency into your Wise account, you'll need to sell your cryptocurrencies on CoinJar first.
How do I sell my cryptocurrencies on CoinJar?
CoinJar allows you to sell your amounts of cryptocurrency for fiat currency. This is similar to how traditional stock markets work, but in this case, you are trading cryptocurrencies instead of stocks.
What fees are involved in selling cryptocurrency on CoinJar and transferring fiat to Wise?
CoinJar charges fees for selling cryptocurrencies, which can vary depending on the specific coin and the amount. Wise also has fees for currency conversions and transfers. It's essential to be aware of these fees before proceeding.
Are there any tax implications when cashing out of CoinJar?
Yes, selling cryptocurrency for fiat currency can trigger capital gains tax events. The tax rules vary depending on your location and how long you held the cryptocurrency. Consult a tax professional for guidance on your specific situation.
Is cashing out of CoinJar the same as investing in cryptocurrency?
No, cashing out is the opposite of investing. Investing in cryptocurrency involves buying and holding cryptocurrencies with the hope that their value will increase over time. Cashing out involves selling your cryptocurrencies to lock in any gains or minimise losses.
What happened in the crypto market in September 2021 that might be relevant?
September 2021 was a volatile month for the crypto market. The market cap of all cryptocurrencies reached a new all-time high, but there was also a significant correction. It's crucial to understand market fluctuations and their potential impact on your investment strategy.
Are there alternatives to using CoinJar and Wise for cashing out?
CoinJar allows users to sell cryptocurrency and transfer funds directly to their Australian, UK, or EU bank accounts.
Additionally, the CoinJar Card enables users to make purchases using their cryptocurrency balance.
There are other cryptocurrency exchanges and fiat currency accounts available. You could also explore peer-to-peer (P2P) trading platforms or using crypto debit cards or a crypto credit card that allow you to spend cryptocurrency directly without converting it to fiat.
Also you could just keep your crypto in your CoinJar wallet, rather than move it to your bank accounts.
What are bearing accounts, and how do they relate to cashing out?
Bearing accounts (also known as interest-bearing accounts) are accounts that earn interest on the balance held. Some cryptocurrency platforms offer bearing accounts for certain cryptocurrencies. These accounts allow you to earn interest on your crypto holdings before you decide to cash out.
Bearing accounts often require the staking or lending of cryptocurrency to a third party, which introduces additional risk factors.
What is a smart contract?
A smart contract is a self-executing computer program stored on a blockchain. It automatically enforces the terms of an agreement between parties once pre-defined conditions are met, removing the need for intermediaries.
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