Crypto lenders like BlockFi and Genesis Capital have been pushing the tax free perk in a bid to get more borrowers; since taxes are not levied until assets are sold borrowers are putting up their bitcoin as collateral to gain access to cash; this perk has help some crypto lenders see big jumps in volume over the last year; the biggest risk is still price volatility with cryptocurrency as there have been significant fluctuations over the last few years; It’s a way to remain invested and not create a taxable event and get access to liquidity,” said former Wall Street trader Edgar Fernandez to American Banker. Source.
