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The UK tax authority promotes "no profit, no loss" DeFi tax treatment, Aave founder calls it a significant victory for users.
According to Hash World News, Aave founder Stani Kulechov stated that the UK's HM Revenue and Customs (HMRC) has released the results of its tax consultation regarding DeFi lending and staking activities, proposing a "No Gain No Loss (NGNL)" tax treatment recommendation. This means that users will not be considered to have disposed of capital gains when depositing crypto assets into protocols like Aave. If legislated, this policy will greatly simplify the reporting burden for users and is seen as a significant victory for DeFi users. The Aave team participated in the consultation process and advocated for the policy to reflect the economic substance of on-chain interactions.
$Aave #Aave #Decentralized Finance #Blockchain #Cryptocurrency #HMRC