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One of the largest mortgage lenders in the United States, United Wholesale Mortgage (UMW), stopped accepting payments in cryptocurrency six weeks after the launch of the corresponding program. Among the reasons, the company cited regulatory uncertainty and related costs.
In mid-August, UMW announced that it would allow customers to pay mortgage fees using bitcoin. The company wanted to study and test the new tool to determine if it was a faster, simpler, and cheaper solution.
“We are evaluating the feasibility and requirements in order to accept cryptocurrency to satisfy mortgage payments.” – @Mishbia15
— United Wholesale Mortgage (@UWMlending) August 16, 2021
“Thanks to our technology team, these transactions were successful. Due to additional costs and regulatory uncertainty in the field of cryptocurrencies, we have come to the conclusion that at the moment we are not ready to go beyond the pilot program,” the new press release says.
UMW stressed that the testing experience allowed the organization to prepare for the introduction of digital assets. The company will re-integrate bitcoin payments when “transactions with cryptocurrencies become something that contributes to business development.”
According to CNBC, as part of the pilot program, UMW accepted six cryptocurrency transactions and tested three assets – bitcoin, Dogecoin and Ethereum. In a conversation with the TV channel, the lender’s CEO Matt Ishbia noted that there was no significant demand for such a service among customers.
Because IRS classifies cryptocurrencies like bitcoin as property, some participants in the experiment may be presented with tax bills for payments made in digital assets.
“Many people don’t realize that whenever they pay with cryptocurrency for a cup of coffee or other consumer goods, the action is classified as capital gains,” explained the head of the tax strategy department. CoinTracker.io Shehan Chandrasekera.
Recall that in September, the American online retailer Shop.com added support for payments in cryptocurrency as part of a partnership with the BitPay processing service.
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