TechFlow news, according to Cointelegraph, the Australian Taxation Office (ATO) has released guidelines on the capital gains tax (CGT) treatment of DeFi and personal crypto token wrapping, clarifying its intention to continue taxing capital gains when Australians wrap and unwrap tokens.
In its statement, the ATO said that transferring crypto assets to an address over which the sender has no control, or to an address already holding a balance, will be considered a taxable CGT event.
The ATO added: "The capital gain from the CGT event equals the market value of the property you receive as a result of transferring the crypto asset. However, whether a CGT event is triggered depends on whether the individual records a capital gain or loss. A similar approach is also applied regarding taxation for liquidity pool users and providers, as well as DeFi interest and rewards."
