[winslett]

It is one step closer to shutting the doors on Bitcoin as an isolated financial ecosystem. Bitcoin-to-actual-USD is a trackable / taxable event. Whales avoid it like the plague.

By moving to a pseudo-dollar like Tether, market makers can hang out while they wait for a suspect better buy-in price in the future. Should pseudo-dollars go way, they actual-Dollar transactions get a taxable haircut. Additionally, the friction of going from actual-Dollar to Bitcoin increases.

Tether is effectively behaving as a crypto-clearing house with their pseudo-dollar.

[avalys]

Aren't sales of Bitcoin for Tether taxable anyway?

[mateuszf]

> Aren't sales of Bitcoin for Tether taxable anyway?

Maybe in US, but not everywhere. For example in Poland where I live crypto to crypto transactions are not taxable.

[imhoguy]

In Germany selling crypto for fiat after year should be tax free. https://www.coindesk.com/policy/2022/05/11/germany-publishes...

[astrange]

Decentralized exchanges probably don’t give you the reports you need to do taxes even if you wanted to do them.

[Grimburger]

Can't speak for other countries but for Australians, yes, it's a taxable capital gains event.

[wbl]

You are assuming traders are being makpid about IRS compliance and reporting.