Bridge
Also known as: cross-chain bridge, bridging
A protocol that moves crypto value between blockchains; bridging may be treated as a disposal depending on the mechanism used.
Definition
A bridge transfers value from one blockchain to another, often by locking the asset on the source chain and minting a representation on the destination chain. Tax treatment depends on the mechanism: if you receive a different asset (such as a wrapped token), bridging may be a disposal, whereas a like-for-like move you control might not be. Treatment is unsettled, so track each bridge transaction and the assets received.
Example
You bridge ETH from Ethereum to an L2, receiving a representation on the new chain. Depending on the mechanism, this may be a disposal — record it.
Jurisdiction notes
- South Africa: No specific SARS guidance; bridging that yields a different asset may be a disposal — track each transaction conservatively.