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UK launches consultation on DeFi taxation

Friday 8 July 2022 14:43 CET | News

The UK government has launched a consultation for investors, professionals, and companies on taxing decentralised finance (DeFi) activities, according to CoinDesk.

 

Specifically, the government wishes to gather evidence on the taxation of crypto-asset loans and staking, according to an announcement. ‘The government is interested in ascertaining whether administrative burdens and costs could be reduced for taxpayers engaging in this activity and whether the tax treatment can be better aligned with the underlying economics of the transactions involved’, the announcement read.

Those wishing to submit evidence have until 31 August 2022 to do so. The government outlined a set of initiatives in April 2022 to make the UK a global crypto stronghold. Among them was conducting ‘major surgery’ on the taxation system to ‘make it work more easily for crypto’, according to Economic Secretary John Glen.

In May 2022, the government published a consultation aiming to reduce risk for investors holding stablecoins by giving the Bank of England power to appoint administrators to oversee insolvency arrangements of failed stablecoin issuers.


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Keywords: cryptocurrency, DeFi, stablecoin
Categories: DeFi & Crypto & Web3
Companies:
Countries: United Kingdom
This article is part of category

DeFi & Crypto & Web3