The UK is seeking public opinion to make changes to its decentralized finance (DeFi) staking and lending tax treatment.
In a statement made by the UK government on Thursday, April 27, it was stated that a consultation on new tax regulations for DeFi lending and staking has been initiated. UK’s national taxation agency HM Revenue and Customs (HMRC) At the focus of work carried out by DeFi staking services And lending taxation of properties.
On the other hand, according to the statement made, Centralized exchanges (CeFi) that provide staking services will also be affected. Although there is no clear framework yet on how the taxation will be, the authorities public opinion And are open to feedback stated.
If existing tax rules covering traditional finance are applied directly to the DeFi ecosystem serious problems Stating that it may occur, HMRC said, a new type of taxation stressed the necessity.
Direct application of the traditional tax system may result in tax consequences that do not reflect the underlying economic nature and tax liability on an unprofitable transaction. Additionally, the requirement to determine and record the market value of assets at each step of the transaction may create a disproportionate administrative burden.
Feedback and public consultation June 22 is scheduled to continue until