Hi,
With the latest momentum in the Crypto space there are a couple of areas that would require clarification. I have noted that a number of threads on this community have requested clarifiaction with many of them being referred as early engagements or private rulings.
Both of which I don think is reasonable as we all require the answer for this. I am looking for clarrification on two points.
1) When moving crypto (eg Bitcoin) from one wallet to another or from one wallet to an exchange where there is no transfer or exchange of the asset to any other asset. BTC remains the same both in a wallet or on the exchange. Is the transfer of the underlying assets between wallets or the exchange considered transfer of ownership and therefore subject to CGT?
2) Loans derived from collateralized assets. With the increase in DeFi it is possible to "Stake" or "Transfer" your crypto to a platform like compound finance and offer it up as collatoral. In this event the platform would pay you the holder, interest for staking this asset. There are also fees required to stake these assets.
You as a user can then opt to "Lend" money from the platform offering your staked crypto as collatoral for the loan. You are then charged interest for the loan and may be subject to liquidation of the loan if you are not able to repay the loan or the underlying asset reduces in value such that the LVR (Loan value ratio) of the loan is not upheld. There is a dirrect correlation to this in the normal sector when people offer houses etc as collatoral for loans from banks.
I have 2 questions here.
1) Is it seen as a CGT event when you transfer or stake the crypto on the plaform as collatoral.
2) Dending on the answer to the first point, is lending from the platform considered to be a CGT event?
Regards
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