Does the Underlying Asset Being a Cryptocurrency Change the Non-Delivery Tax Treatment?
Generally, no. Cryptocurrency derivatives that are cash-settled, such as futures or options, follow the same tax principles as other non-deliverable financial derivatives.
The gain or loss is typically treated as a capital gain or loss from the contract's settlement. However, the underlying cryptocurrency itself is usually treated as property for tax purposes.
This distinction is important: the derivative is a contract, and the crypto is the underlying property.
