UK government seeks public input on DeFi taxation

In the context of decentralized finance (DeFi), the UK Government is seeking opinions from the general public regarding the taxation and staking of crypto asset loans.

DeFi is a generic term for financial applications built on blockchain technology. This can include everything from platform lending to borrowing and staking.

In particular, the government is interested in collecting information on cryptocurrency loan taxation and staking. Your Majesty’s Revenue and Customs Agency (HMRC) is seeking documentation. Release On Tuesday, he explained his intention to investigate whether taxpayers participating in emerging industries can reduce administrative hassles and costs, and whether tax treatment is more in line with the basic economics of transactions. ..

HMRC seeks input from investors, experts and organizations involved in DeFi-related activities such as technology and financial services companies, trade associations and representatives, educational institutions and think tanks, legal affairs, accounting and tax advisors. .. Stakeholders must submit their response via email provided by the agency by August 31, 2022.

The British government # Cryptography # Assets #loans When ‘# StakingIn the context of’ #decentralized #finance ((((#DeFi).https://t.co/zurvajtNRM

Cryptofornia.x (@ CryptoforniaX) July 5, 2022

Following the request for evidence, the Government will publish a summary of the response, along with details of the next steps, as announced.

Related: UK Government Targets Cryptography on Latest Legislative Agenda

In April, the government released a list of plans to make Britain a global cryptocurrency powerhouse. According to Economic Secretary John Glenn, there was a tax system “major surgery” “to make it work easier for cryptocurrencies.”

In May, the government began talks to empower the Bank of England to appoint a manager to manage the bankruptcy arrangements of failed stablecoin issuers.

Regarding cryptocurrency regulations, the former British Prime Minister recently expressed concern that Britain is lagging behind its European competitors. As Cointelegraph reported, from 2016 to 2019, UK Finance Minister Philip Hammond said there was a clear lack of direction and cohesion when it came to cryptocurrency policies.