🔮Cryptoasset derivatives (CFDs, Futures and Margin Trading)

Crypto margin trading, futures and other CFDs

Individual traders will pay capital gains tax on any margin trades or other CFDs. When you open a new position, you pay no tax, however, when this position closes you realise a capital gain or loss and a taxable event occurs. The same short-term and long-term Capital Gains Tax rates apply to these transactions.

When it comes to crypto futures - if you're trading regulated crypto futures, you can apply the 60/40 rule to get a more favourable tax treatment. This is because of the IRS 60/40 rule. This rule allows investors to treat 60% of their gains as long-term gains and 40% as short term gains regardless of how long a position is kept open. The vast majority of crypto futures are (as-yet) unregulated and as such these rules cannot be applied.