Australia will impose capital gains tax on packaged crypto tokens

ChainCatcher news, according to Cointelegraph, the Australian Taxation Office (ATO) has released guidelines on the capital gains tax (CGT) treatment of DeFi and personal cryptocurrency token wrapping, clarifying its intention to continue taxing capital gains for Australians when wrapping and unwrapping tokens.

The Australian Taxation Office stated in a statement that transferring crypto assets to an address that the sender cannot control or to an address that already has a balance will be considered a taxable CGT event. The ATO added, "The capital gain from a CGT event is equal to the market value of the property you receive from the transfer of the crypto asset. However, the triggering of a CGT event depends on whether the individual has recorded a capital gain or loss. A similar approach has also been considered for the taxation of liquidity pool users and providers, as well as DeFi interest and rewards."