Does swapping Bitcoin for WBTC restart the one-year holding period?

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.Converting Bitcoin into WBTC triggers a private disposal transaction under one reading and restarts the one-year clock. Under the other the transaction stays tax-neutral: what the statute says, what the Finance Ministry leaves open and which records count either way.Anyone converting Bitcoin into Wrapped Bitcoin usually wants just one thing: to make their holding usable on Ethereum. In tax terms this step has still not been settled in Germany. The short answer to whether swapping into WBTC is taxable is therefore: there are two defensible readings, and they lead to entirely different outcomes. Under one, the switch is a swap and therefore a private disposal transaction that restarts the one-year clock on your coins. Under the other, economic identity is preserved and the transaction stays tax-neutral. Which reading counts in the end depends on what you can document. This guide sets out the legal position under German law, meaning the Income Tax Act, the administrative view of th...