The UK government is asking the public for its input on the taxation of crypto asset loans and staking in the context of Decentralized Finance.
The government is interested in gathering information on the taxation of crypto asset loans and staking. Her Majesty’s Revenue and Customs call for evidence paper, describing its intention to study if administrative hassles and costs may be reduced for taxpayers who participate in the emerging industry, as well as if the tax treatment might be more aligned with the transactions’ fundamental economics.
HMRC is seeking input from investors, professionals, and organizations involved in DeFi-related activities such as technology and financial services companies, trade associations and representative bodies, educational institutions and think tanks.
Interested parties have until 31 August 2022 to submit their response via an email provided by the agency. Following the call for evidence, the government will publish a summary of responses together with details of its next steps, as per the announcement.
When it comes to cryptocurrency regulation, a former Chancellor of the United Kingdom has recently expressed fears that the country is falling behind its competitors in Europe. Philip Hammond, the United Kingdom’s former Chancellor of the Exchequer stated that there has been a clear lack of direction and unity when it comes to cryptocurrency policy.
