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Tax arbitrage, iirc. In some jurisdictions like the US, exiting your position into USD is a taxable event for capital gains taxes. I seem to recall stable coi
by SkyMarshal 6y ago
Tax arbitrage, iirc. In some jurisdictions like the US, exiting your position into USD is a taxable event for capital gains taxes. I seem to recall stable coins were invented to avoid that. I can't imagine tax authorities allow that loophole though.
- tablespoon 6y ago> Tax arbitrage, iirc. In some jurisdictions like the US, exiting your position into USD is a taxable event for capital gains taxes. I seem to recall stable coins were invented to avoid that. I can't imagine tax authorities allow that loophole though. If they did, it looks like it's closed now. At least in the US, converting between two cryptocurrencies is a taxable event: > There are plenty of questions about whether or not investors can claim a direct crypto conversion (e.g. bitcoin to ethereum) as "like-kind", avoiding taxes on those transactions. The tax laws changed beginning in 2018, and like-kind exchanges are only applicable to real estate transactions. https://www.coinbase.com/learn/tips-and-tutorials/crypto-and-bitcoin-taxes-US https://www.coinbase.com/learn/tips-and-tutorials/crypto-and...
- jonplackett 6y agoI wonder what % of that is getting declared...
- Bombthecat 6y agoIn germany, they don't allow that loop hole. If you made profit and traded against another coin, you pay tax, simple. If you hold for a year though. You dont pay taxes. My portfolio is up quit a bit now and its almost a year. Hope it stays almost like that just few more weeks :) But who knows?