Question 1

Is swapping crypto to crypto taxable in the UK?

Accepted Answer

Yes. HMRC treats swapping one crypto for another (e.g. BTC to ETH) as a disposal. You are treated as if you sold the first token at market value, then bought the second. Capital Gains Tax applies on any gain above your annual allowance.

Question 2

Do I pay tax on staking rewards?

Accepted Answer

In most countries, yes. Staking rewards are generally taxed as income when received at their market value. When you later sell or swap the rewarded tokens, you may also owe capital gains tax on any appreciation since receipt.

Question 3

Is transferring crypto between wallets taxable?

Accepted Answer

No. Moving crypto between your own wallets or exchanges is not a disposal and is not a taxable event in any of the five countries covered (UK, US, Australia, Canada, Sweden). However, keep records to prove both wallets belong to you.

Question 4

Are airdrops taxable?

Accepted Answer

It depends on the country and circumstances. In the US, all airdrops are taxable as income when received. In the UK and Australia, unsolicited airdrops may not be taxed as income but will trigger capital gains tax when sold. Airdrops earned in return for a service are generally taxable as income everywhere.

Question 5

Is converting to stablecoins a taxable event?

Accepted Answer

Yes. Converting crypto to a stablecoin (e.g. BTC to USDT) is treated as a disposal in all five countries covered. It is taxed the same as selling to fiat currency. This is one of the most commonly missed taxable events.

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