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How the Bitcoin Credit Card Works

Since the beginning of time, we have accepted money as our medium of exchange. And today, Bitcoin has taken charge. It also made it possible for anyone to send money without the use of any third parties. In fact, the total value of all existing cryptocurrencies exceeds $2 trillion.

Different financial service organisations are now using this currency to attract new consumers. If you have Bitcoin and need to make regular transactions with it, then you should get a Bitcoin credit card. It gives you control of your own wallet and private keys that allow access to your funds.

By now you may be wondering how buying a cup of coffee with Bitcoin works. If you want to keep your fingers on the Bitcoin pulse, then a Bitcoin credit card is a great way to go. But what is it all about? Here’s everything you need to know about Bitcoin credit cards and how they work.

What is a Bitcoin Credit Card?

A Bitcoin credit card works like a traditional rewards credit card. It rewards credit card transactions with Bitcoin instead of mileage or cash back. You can place a higher priority on receiving your rewards in Bitcoin rather than cash.

But to reap the benefits of using one, you should have an excellent credit score. According to any credit bureau agency, the highest you can get is an 850 credit score. This is known as the perfect credit score. With such a score, you can have better financial options, including loans and mortgages.

So how do you get an 850 credit score?

Getting the perfect credit score is hard, but not impossible. All you have to do is make a habit of following the best practices below:

  • Make timely payments on your loans, credit cards, and the likes
  • Pay your debts weekly so that you can avoid having balances
  • Consider increasing your credit limit
  • Keep your old accounts open
  • Apply for new credit cards only when you need it

It also helps to monitor your credit report regularly. This will help you identify any discrepancies in your report. Should there be any, get the help of credit repair services to get your credit fixed.

They work with creditors and credit bureaus to improve your credit score by cleaning up your credit records. Top-rated credit repair companies can help you improve your credit score, especially if you have bad credit.

If you’re wondering how much credit repair costs, no worries. Some affordable credit repair services are available for you. These cheap credit repair services can also help you achieve the perfect credit score possible.

How Does the Bitcoin Credit Card Work?

Bitcoin credit cards function in the same way as any other credit card on the market. The more you spend on the card, the more rewards you get. But, in this case, you will receive bitcoin in exchange for your purchases. It’s worth noting that each card rewards you bitcoin differently.

To know more about how bitcoin credit cards work, here are some examples.

1. BlockFi Rewards Visa Signature Credit Card

BlockFi launched the world’s first Bitcoin credit card last 2021. After signing up, you will receive BlockFi’s Rewards Points instead of cryptocurrency. If you have purchases above $30,000 yearly, you can get 2% back in cryptocurrency. This resets every year on the card’s anniversary date.

BlockFi will turn the points into bitcoin as soon as you deposit them and your account is in good standing.

To get the card, you need to have an excellent credit score. If you’re finding it hard to improve your credit rating, hire credit pros to help you in this aspect.

With this card, you can earn extra rewards from your bitcoin holdings and cryptocurrency exchanges. You can get 0.25 percent cash back on all qualified trades and up to $500 in cryptocurrency every month. You can also get $30 in cryptocurrency for recommending the card to each person.

The card works on the Visa network and has no yearly or international transaction fees.

2. Gemini Credit Card

Gemini is a popular cryptocurrency exchange that also released a crypto credit card. This bitcoin credit card enters the market with the most flexible offer. You can earn rewards in a wide range of cryptocurrencies. You can, then, move them off the Gemini platform into your own cryptocurrency wallet.

Their rewards are proven to be competitive with those of others who offer cryptocurrency credit cards. The best thing is that there is no annual or foreign transaction fee!

To get this card, you need to qualify for the following:

  • You’re a registered Gemini user
  • A resident in the US
  • Have a 670 to 850 credit score
  • Have a driver’s license or passport

Once you’re approved, you can pick from three-card colours: black, rose, or silver. This customisation is not available on many credit cards. They will also give you a virtual card, so you can start using it right away while you wait for your real card to arrive. You can use your Gemini Credit Card in any place that accepts Mastercard.

3. Upgrade Bitcoin Rewards Card

The Upgrade Bitcoin Rewards Credit Card is one of several cards issued by Sutton Bank. It’s like a credit card and a loan in one. That means you can make purchases and then pay off your debt in equal monthly instalments. You can do this over a defined period of time with a fixed interest rate.

But that’s not all: when you make monthly payments, the card gives you 1.5% back in bitcoin. This makes it another product in a growing trend of credit cards that provide cryptocurrency incentives.

This is perfect if you haven’t decided on whether you should get into cryptocurrency or not. The Upgrade Bitcoin Rewards Card allows you to do so without risking your own money.

4. Venmo Credit Card

Many people use Venmo to send and receive money from their friends and family. But, if you look at the app’s other features, you’ll see that the mobile payment service has a lot more to offer. One such thing is the Venmo Credit Card.

You can participate in a personalised rewards program. By doing so, you can earn cash back on where you spend the most, with no annual fee. That means you will get 3% cashback on the top eligible spending category, 2% on the next, and 1% on others. These spending categories can include bills, dining, groceries, gas, beauty and health, and transportation.

You can use the rewards you get in different ways using the app, such as: 

  • Paying your credit card bill
  • Completing Venmo requests
  • Paying authorised merchants
  • Converting it to real money and transferring it to your bank account
  • Buying cryptocurrency

By applying for one, you will see that your Venmo app adds your Venmo credit card as a payment option. Additionally, you can use it in places where Visa credit cards are accepted. The QR code on your credit card also allows other people to “Venmo” you or request a payment on the spot.

Should You Get a Bitcoin Credit Card?

You should only apply for a Bitcoin credit card if it will reward your spending patterns. If you’re interested in cryptocurrencies, earning bitcoin incentives can be beneficial.

But make sure you understand the benefits of each card against the costs. Here are some thoughts to consider:

  • How much is the reward rate?
  • Will you be paying an annual fee?
  • Are there any other charges?
  • Are there other benefits or privileges that come with the card?
  • Is it possible to get a better deal with another card?

By choosing the best rewards credit cards on the market, you can get better benefits and incentives. Remember that you can buy Bitcoin using your cashback benefits from a regular credit card. It makes more sense to choose a credit card that offers a larger cashback rate in exchange for a lower annual fee.

While cryptocurrency rewards appear appealing, they are also volatile. It’s much like a stock market investment. There’s no telling what the value of the coins will be after a few months or so. Be sure you make the right decision when it comes to applying for bitcoin credit cards.

Final Thoughts

The Bitcoin credit card has the potential to change the way we use cryptocurrencies. It will be possible to pay for goods and services using bitcoins. This means that you won’t have to convert your bitcoins into fiat currency before buying. The more widespread the acceptance of cryptocurrency, the more useful this credit card will become.

If you want to test the waters of Bitcoin and cryptocurrency, it can be a good way to dip your toes in. There are plenty of options available right now, so you’re not limited to only one choice here. So go ahead and give Bitcoin credit cards a try. You never know what might happen.

New Monaco Law includes Restrictions on Solicitation for Financial Products

Financial entities not licensed in Monaco that are currently servicing Monaco clients are recommended to conduct a review of how they service and approach their Monaco client base.

Monaco law on financial activities has recently been modified by Law 1.515 dated 23 December 2021 which was published in the Monaco legal gazette on 7 January 2022. One of the main changes is the introduction of a general prohibition for entities not duly licensed in Monaco to conduct solicitation for financial services and products even on a cross-border basis.

Initially, the draft bill contained restrictions on cross-border solicitation from non-licensed entities that were limited to natural persons acting outside the scope of their financial activities.

At a late stage in the legislative process, this reference to “natural persons acting outside the scope of their financial activities” was deleted and the prohibition to solicit now applies irrespective of the category of investors.

Such prohibition is supplemented with criminal sanctions (potential fines and jail sentences).

The broad scope of this new prohibition and the absence of any of the habitual exemptions (e.g. private placement, offer reserved to institutional and professional investors, etc.) carries its load of legal uncertainty. This situation is detrimental to the local private banking sector which rely on offshore issuers of financial products to service their local client base.

We have received a significant number of queries from global financial institutions servicing Monaco players of the private banking and asset management sectors, including external asset managers to ascertain the risk level in relation to this new unfavourable legal framework.

For entities not licensed in Monaco that are currently servicing Monaco clients, we recommend to conduct a review of how they service and approach their Monaco client base to ascertain whether any adjustments are necessary.

Our Firm has a strong expertise in providing legal and regulatory assistance in relation to financial activities and is regularly involved in structuring cross-border and local activities in compliance with Monaco law.

Baker McKenzie Grows Tax Practice with Stephanie Pantelidaki Hire

A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organisation in order to fund government spending and various public expenditures, and tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.

Baker McKenzie has hired Stephanie Pantelidaki as Head of Financial Services Transfer Pricing in the firm’s tax practice. Stephanie joins from PwC, where she has worked in both the firm’s United Kingdom and Switzerland offices.

Baker McKenzie is a multinational law firm headquartered in Chicago, Illinois. Founded in 1949 as Baker & McKenzie, it has 77 offices in 46 countries, and over 6000 lawyers worldwide. It is one of the largest law firms in the world by headcount and revenue.

Stephanie has over twenty years’ experience advising on transfer pricing and international corporate tax issues with a particular focus on financial services – having worked with leading institutions in banking and capital markets, investment management, and the insurance sectors.

She started her career in academia as an economic adviser and research fellow at London Business School, and went on to work for organisations including Andersen, KPMG and Baker McKenzie where she helped establish the Transfer Pricing team in the London office.

Alex Chadwick, head of Baker McKenzie’s tax practice in London, said: “Stephanie is a truly exciting hire for Baker McKenzie. We’re seeing increased demands from financial institutions for transfer pricing works and her skills and expertise will enable us to deliver an even better service for our clients.”

Alex Chadwick, Baker McKenzie’s London Managing Partner, said: “We’re welcoming Stephanie back to Baker McKenzie at a great time, with opportunities in abundance for continued growth across the tax practice. Her experience, crossing academia and finance, mean she will bring a lateral-minded point of view to the team. She’s going to be a fantastic asset to us.”

Stephanie’s hire follows a number of recent significant lateral appointments including Leveraged Finance partner Ben Wilkinson, who joined Baker McKenzie from White & Case, M&A partner Nick Rainsford, who joined from Ashurst, private equity partner Justin Hutchinson, who joined from Kirkland & Ellis, Adam Eastell a partner from Slaughter & May and Nick Bryans, also from Ashurst.

Only 21% of Applicants for Top Jobs Are Women

Women made up just 21% of employees being put forward for top jobs at financial services firms last year, compared to 79% who were men.

The limited number of women taking senior management roles shows there has been little progress in hiring and promoting more women at senior levels within financial services.

This is despite the broad consensus about the importance of improving gender diversity in financial services.

A review of 4044 individuals taking up senior roles at financial services firms last year shows that approximately 833 were women and 3211 were men.

This data refers to all financial services firms, including banks, insurers, fund managers, hedge funds and private equity funds.

One of the reasons often given for the low number of women in senior roles in financial services is that the industry is less friendly towards women who wish to work more flexible hours, or from home, due to childcare requirements.

Pinsent Masons adds that firms need to be committed to making the cultural changes that allow for women to excel in financial services.

A growing number of firms are signing up to the Treasury’s Women in Finance Charter in order to deliver these cultural changes.

A recent analysis of 187 Women in Finance signatories found 64% had increased the proportion of women in senior roles last year while 12% had maintained the same level of representation.

Previous research showed that in 2018/19 women represented 26% of individuals put forward for senior roles, compared to 71% for men.

However, this year’s figures are not directly comparable as the latest figures includes d data on a wider range of financial services businesses.

Pinsent Masons grows its Financial Services offering in Dubai

Multinational law firm, Pinsent Masons, has appointed Banking & Finance partner Matthew Escritt to lead the firm’s Banking & Finance practice in the Middle East, based in Dubai.

Matthew joins from Norton Rose Fulbright, where he has been for the past 19 years, with the past eight spent as partner in the banking and finance team. During this time he has worked in London, Moscow, Bahrain, Singapore and Dubai.

Matthew is a banking and finance specialist, advising on all areas of structured cross border finance, including syndicated lending acquisition, development finance, asset finance, vendor finance, and structured trade and commodity finance. He is familiar with both conventional and Islamic finance funding structures. He also advises on financial restructuring and insolvency mandates. Based in Dubai, he will be leading the Banking & Finance practice in the Middle East (within the Finance & Projects group) and will focus primarily on clients in the Financial Services sector.

Commenting on Matthew’s appointment, Michael Watson, head of the Finance & Projects group at Pinsent Masons said: “Matthew’s reputation precedes him and we look forward to welcoming him as head of our banking and finance practice in Dubai. His experience and expertise will greatly strengthen the practice, enabling them to deepen relationships with existing clients as well as developing new ones. His appointment is another fantastic addition to our growing international capabilities.”

Alexis Roberts, head of the Financial Services sector at Pinsent Masons added: “Matthew’s appointment is a pivotal one in increasing our financing bench strength and will enable us to better support our clients within the Financial Services sector. His breadth of experience and the clients that he’s worked with will allow us to grow our offering across the sector. We greatly look forward to him joining the team.”

Matthew Escritt, head of Banking and Finance in the Middle East added: “I am excited to have been given the opportunity to lead Pinsent Masons’ Banking & Finance practice in the region and to be part of an international team tasked with growing a strategically important practice area to complement the firm’s existing strengths. It will also ensure that we are able to provide vital, full-service support to our clients as they navigate today’s challenging business environment. Given the diverse talents of the individuals involved and the well-known strengths of the existing practice I am confident that we are well placed to achieve our goals.”

Adding to the growing multinational Finance & Projects group, Matthew’s appointment follows that of Anthony Morton in Frankfurt, James Harris in Asia, Jim Hunwick in Sydney and Eran Chivka in Paris.

Richard Lewis and Emily Reid featured in The Lawyer’s Hot 100 list

Hogan Lovells litigation partner, Richard Lewis, and Head of Financial Services, Emily Reid, are featured in The Lawyer’s Hot 100 list, published today.

The prestigious list from leading UK legal magazine The Lawyer celebrates the most innovative and creative lawyers in the UK from private practice, in-house and the Bar.

Richard Lewis was recognised by The Lawyer for his work on complex CIS-related matters such as his ongoing work on the PrivatBank case against its former owners Kolomoisky and Bogolyubov. He has also recently picked up a major new mandate in the Kazakhstan Kagazy litigation.

The Lawyer commented: “In the UK legal market, Hogan Lovells litigation partner Richard Lewis is the go-to guy for complex CIS-related matters.”

Emily Reid heads the Hogan Lovells Financial Services practice and leads the Banking, Lending and Payments practice. Innovation has always been a significant part of Emily’s practice from her ground-breaking work on the UK’s first ever debit card to advising Zopa, the world’s first peer-to peer lender and challengers, such as Curve, on bringing their ground breaking products to market.

The Lawyer commented: “In the tech community, Reid is a fairy godmother for early-stage companies, leading a mentoring programme that each year provides 10 fintech-focused start-ups with £25,000 worth of free legal advice. In 2020, she will capitalise on that knowledge by encapsulating it into chatbots that will answer client queries automatically 24/7.”

Richard and Emily commented: “It is a privilege to be considered among the best lawyers in the UK. We are both delighted with today’s recognition.”