Crypto-To-Crypto Trades

Definition ∞ Crypto-to-crypto trades involve the direct exchange of one cryptocurrency or digital asset for another, bypassing any conversion to fiat currency. These transactions commonly occur on centralized or decentralized digital asset exchanges. Such trades constitute a substantial segment of overall digital asset market activity.
Context ∞ The tax treatment of crypto-to-crypto trades remains a complex and evolving subject across many jurisdictions. Regulators are increasingly scrutinizing these exchanges for adherence to tax reporting and anti-money laundering compliance. This regulatory attention influences the operational practices of market participants.