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Depends on the jurisdiction. In most European countries for example, you only pay tax when cashing out
by namdnay 4y ago
Depends on the jurisdiction. In most European countries for example, you only pay tax when cashing out
- logifail 4y ago> when cashing out Cashing out meaning "selling crypto for fiat"? What about if you sell BTC for another crypto or for gold or ...
- lottin 4y agoIt means selling the asset, full stop.
- logifail 4y ago> It means selling the asset, full stop So it seems from the outside that stablecoins exist primarily to take advantage of grey areas in taxation legislation - and possibly also KYC/AML legislation - which allow investors in certain jurisdictions to avoid taxable events which would otherwise occur when trading. Building a business model on dodging taxes isn't a great look, is it?
- folmar 4y agoWe also have umbrella investment funds doing the same thing but without crypto.
- deadbunny 4y agoIn the UK swapping between crypto is a taxable event.
- mjul 4y agoNote that “cashing out” in some EU countries means transacting your cryptocurrency tokens in any way, not just trading them for money. Example: Sweden taxes your gains when you transact a cryptocurrency holding, also when you exchange from one cryptocurrency to another. [1] Same for Denmark [2]. Check your relevant tax legislation for your local rules. [1] https://skatteverket.se/privat/skatter/vardepapper/andratillgangar/kryptovalutor.4.15532c7b1442f256bae11b60.html https://skatteverket.se/privat/skatter/vardepapper/andratill... [2] https://skat.dk/skat.aspx?oid=8953 https://skat.dk/skat.aspx?oid=8953