Hi everyone,
I received guidance from my cantonal tax office indicating that under certain conditions—such as when crypto gains exceed half of one’s taxable income—these profits are treated as income. Assuming this scenario applies, I’m curious whether storing these gains in stablecoins (for example, USDT or USDC) instead of converting them to fiat currencies like USD or CHF affects their taxation.
It appears that converting crypto gains to stablecoins does not necessarily change the tax treatment in cases where your gains exceed the threshold set by your cantonal authority. In my experience, the taxable event is triggered by the realization of profit, regardless of whether those profits are reinvested in stablecoins or converted back to fiat. The medium of storage does not typically affect the tax implications once the gain is realized, so it is advisable to be aware of how local guidelines define and manage these transactions. Consulting a tax professional remains a wise step.