Hi, is a 1:1 token swap / migration from erc-20 to mainnet token a taxable event? No tokens are sold, nor funds realised, and the value of the new asset is the same as the old. I understand the erc-20 version is burned, just as a share split would deem the original obsolete.
Thanks
Hi @KeithT
There is a rule for when a company converts shares into a smaller or larger number under Corporations Law for no CGT event to occur. This is because there is no change in their beneficial ownership even if the number of shares change (but not value). But this may not extend to crypto, as crypto is not controlled by Corporations Law, and is often held offshore.
Our previous answer on the topic used this to answer the question. The tokens specified (NXPS to Pundix) in the previous question are not migrating from ERC20 to another format/mainnet. They remain the same (for now), so it's a little different of a circumstance.
We don't have information specific to cryptocurrency to be able to give you a solid answer on this. Traditionally, disposing of a capital asset to get a new one (even in a 1:1 transfer) will be a capital gain event because you are disposing of the asset. But, given the intricacies surrounding cryptocurrency and its impact on CGT, we recommend you get in contact with our Early Engagement team to discuss this further.
Hi @KeithT
There is a rule for when a company converts shares into a smaller or larger number under Corporations Law for no CGT event to occur. This is because there is no change in their beneficial ownership even if the number of shares change (but not value). But this may not extend to crypto, as crypto is not controlled by Corporations Law, and is often held offshore.
Our previous answer on the topic used this to answer the question. The tokens specified (NXPS to Pundix) in the previous question are not migrating from ERC20 to another format/mainnet. They remain the same (for now), so it's a little different of a circumstance.
We don't have information specific to cryptocurrency to be able to give you a solid answer on this. Traditionally, disposing of a capital asset to get a new one (even in a 1:1 transfer) will be a capital gain event because you are disposing of the asset. But, given the intricacies surrounding cryptocurrency and its impact on CGT, we recommend you get in contact with our Early Engagement team to discuss this further.
15 Apr 2026 · 8 min read time
4 Dec 2023 · 9 min read time
1,409 views
4 replies