Why would it be a taxable event? They are denominated in the exact same thing.
Discussion
Given that WBTC-BTC is taxable, I don't see a difference in WBTC from Liquid, but I'm open to learning if so.
"Because you're exchanging one token for another - wrapping Bitcoin is a taxable event in all countries that view swapping crypto as a taxable event. This means you'll pay Capital Gains Tax on any profit. From a tax perspective - WBTC is treated exactly the same as Bitcoin."
That still seems ridiculous and the last sentence there seems to be at odds in my thinking to the rest of it. That would be like charging me capital gains if I turn in my physical papers stocks to get the digital stock certificates on the NYSE in place of them. Same denomination, just a different form, in the case of NYSE a custodial version of the same asset.
Or another example would be if I exchanged dollars for a gift card of the same amount. That this would be reportable. It just seems absurd. If I’m not exchanging for a different asset entirely, but just the same one at a different location or under a different degree of control, then how is going from single sig to multi-sig, from on chain to Lightning, or from sovereign to custodial not the same thing? I mean how do they possibly explain the difference between me swapping to LBTC versus having BTC paper in an account on Cash App?
God the government is fucking retarded.