Home Guides Capital Gains Tax Applies to Wrapped Tokens and DeFi, Australian Tax Authority Clarifies

Capital Gains Tax Applies to Wrapped Tokens and DeFi, Australian Tax Authority Clarifies

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Capital Gains Tax Applies to Wrapped Tokens and DeFi, Australian Tax Authority Clarifies

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“Being able to wrap tokens is a valuable and necessary cross-chain interoperability tool,” said Michael Bacina, Digital Assets lawyer at Piper Alderman Lawyers. “To have a purely technological function triggering a tax event and tax payable is not something users would expect when using crypto-assets.”

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