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by tablespoon
1944 days ago
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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 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... |
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