The UK Government seeks input from investors, professionals and companies on the taxation of decentralized finance (DeFi) activities.
UK Focuses on Taxation and Staking of Cryptocurrency Loans in DeFi Industry
According to an announcement made on Tuesday, the government is looking to gather insights specifically on taxation and staking of crypto-asset loans.
The following statements were used in the announcement:
“The government is interested in determining whether the administrative burdens and costs for taxpayers engaged in this activity can be reduced and whether the tax procedure can be better aligned with the underlying economics of the DeFi transactions involved.”
Those wishing to express their opinion have until 31 August.
The UK government announced the UK in April as a global cryptocurrency He had outlined a series of initiatives he launched to make it his stronghold.
These initiatives included making a “major change” to the taxation system to “make it easier for cryptocurrency companies to work,” according to Economy Minister John Glen.
In May, the UK government published a consultation aimed at reducing risk for stablecoin holder investors by giving the Bank of England the power to appoint directors to oversee bankruptcy arrangements for failing stablecoin issuers.
The Bank of England Financial Policy Committee published a new report on Bitcoin and cryptocurrencies today. In the report, it was mentioned that with the Terra collapse, the lack of supervision in the crypto market became more and more evident.
However, since the collapse of the Terra ecosystem, regulators around the world are giving more weight to the regulation of crypto assets.
*Not investment advice.