Tax regulation tightening has become the norm, but that doesn't mean assets should be "frozen." What is the real strategy of experts? Instead of letting assets sit idle in wallets, it's better to channel them into compliant avenues that generate automatic yields.

The popular approach in the community lately is this: through DeFi over-collateralization mechanisms, convert mainstream tokens like BNB and ETH into stable assets pegged to 1 USD, thereby avoiding price volatility risks and continuously earning protocol yields. This logic sounds simple, but the brilliance lies in the fact that—the entire process is fully traceable on-chain, with transparent yield structures, leaving ample room for future tax reporting.

Why is this approach particularly suitable now? There are several key points: First, the asset conversion process is clear. Converting highly volatile crypto assets into stablecoins via protocols significantly reduces volatility on the books, making it easier to be recognized as "explainable legitimate income" in tax calculations. Second, the source of income is clear. Earnings from providing liquidity or participating in mining are interest-like income generated by DeFi protocols, which have established reporting pathways in most tax frameworks worldwide and are less likely to be considered hidden income.

In simple terms, this is an upgrade from "naked assets" to "transparent yields"—in an era of regulation, proactively embracing transparency becomes a better form of protection.