DEX (Decentralised Exchange)
Also known as: decentralised exchange, decentralized exchange, AMM
A peer-to-peer exchange running on smart contracts where users swap tokens directly from their wallets; each swap is a disposal.
Definition
A decentralised exchange (DEX) lets users trade tokens directly from their own wallets via smart contracts, often using automated market makers and liquidity pools rather than an order book. DEX trades are on-chain and self-custodial. For tax, every swap on a DEX is a disposal of the token sold and an acquisition of the token bought, valued in rands at the time — and there is no exchange statement, so on-chain records are your evidence.
Example
You swap USDC for ETH on a DEX. That swap is a disposal of USDC and an acquisition of ETH, valued in rands at the swap time.
Jurisdiction notes
- South Africa: Every DEX swap is a disposal for SARS; with no exchange statement, on-chain data is your record.