What are the Tax Implications of using SecretSwap/DEFI?

Crypto - Crypto transactions are taxable events - but if I use SecretSwap to swap tokens, then if I want liquidity I need transfer funds to my Ether wallet. Since the transactions are ‘private’ - wouldn’t this just show up as I received Ether from an anonymous source and thus then need to be declared as income? If I’m staking my coins for > 1 year in order to avoid short term capital gains tax, how is this accounted for?

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Hi Matthew,

Welcome to the forums🙂

I wont go into answering your question, because I’m not a tax professional. I will however say that we are working on features that would enable you to better track tax implications of snip20 tokens over the next several weeks.

For now you can at least use this tool for regular transactions.

Take care, and be cautious about tax advice over the internet with non professionals. I just want to give you the data available today, you can use it in conjunction with tax advice from a professional

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