We’re pleased to report that the pipeline of new loans is looking healthy, and new auctions will be landing on site shortly.
Cypress-based KoronaPay, a money transfer service operating across Europe and the CIS region, has banned all crypto-related transactions including cryptocurrency trading, according to a statement from the company. KoronaPay states that it halted crypto following reports that the Central Bank of Russia has started to examine the operations of Russian banks with crypto exchanges. Recently, the Central Bank issued a consultation on crypto that was highly critical of the sector cautioning on the risks for investors as well as being critical of mining.
KoronaPay is an Electronic Money Institution (EMI) licensed and regulated by the Central Bank of Cyprus. The company has been in business for 18 years serving 50 different countries. KoronaPay states that it is acquiring over 10,000 new users every week and is targeting €300 million of remittances per month in Europe by the end of 2022. KoronaPay claims to be the largest money transfer service in Russia and the CIS region.
Related to the crypto ban, KoronaPay reports that it has deployed an anti-fraud tool that uses AI to monitor and block transactions with crypto exchanges.
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.