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In most (all ?) countries except US, you are not taxed for crypto to crypto conversion. However you are taxed when you convert crypto to fiat. For example if yo
by ddrdrck_ 4y ago
In most (all ?) countries except US, you are not taxed for crypto to crypto conversion. However you are taxed when you convert crypto to fiat. For example if you want to secure your bitcoins benefits by converting them to 1M USD, in France you should pay 300k USD (30% flat tax). But if you convert them to 1M UST, or USDT, or USDC, or whatever, then you pay nothing.
So using stablecoins is a way of securing volatile crytpo assets for any period of time, while not having to pay taxes immediately (only when you decide to convert to fiat)
Of course this makes sense only if the stablecoin is actually stable ...
- nikanj 4y agoYou're not taxed, because the tax authorities rely on self-reporting. Trading one asset for another asset is ~always a taxable in most (all?) countries.
- ddrdrck_ 4y agoWell not in France at least, and as far as I know this is the same in most EU countries. I do not really know for Asia and Africa though, but I only ever heard of US (and now of UK). I will add that in some EU countries you are not taxed at all (assuming this is not your day job), even when converting to fiat ! Portugal, Belgium and Germany. Also Switzerland (not in EU)
- tom_ 4y agoYou are taxed on this in the UK: https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-sell-cryptoassets https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-whe... - it's an instance of these rules, which apply to most types of asset: https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13090 https://www.gov.uk/hmrc-internal-manuals/capital-gains-manua...