Coindesk
6 months agoCryptocurrency
Australia Updates its Capital Gains Tax Guidance to Include Wrapped Tokens and DeFi
Australia's tax authority has clarified that its capital gains tax on crypto products applies to wrapped tokens and token interactions with decentralized lending protocols.
The updated guidance includes reporting capital gains and losses for the exchange of crypto assets, including wrapped tokens and participation in DeFi lending and borrowing arrangements.
The move has received criticism from the crypto industry, with concerns about the taxation of purely technological functions and potential implications for token transfers to centralized exchanges. [ more ]