UK Government Requests Opinions Regarding DeFi Taxation

The U.K. government is looking for opinions on taxing decentralized finance (DeFi) activities from investors, professionals, and businesses.

According to a statement released on Tuesday, the government wants to collect data specifically on the taxation of crypto-asset loans and staking.

According to the announcement, "The government is interested in ascertaining whether administrative burdens and costs could be reduced for taxpayers engaging in this activity and whether the tax treatment can be better aligned with the underlying economics of the transactions involved."

The deadline for submitting evidence is August 31.

In April, the government unveiled a series of initiatives aimed at establishing the U.K. as a global crypto powerhouse. According to Economic Secretary John Glen, one of them involved performing "major surgery" on the taxation system to "make it work more easily for crypto,"

By granting the Bank of England the authority to appoint administrators to oversee the insolvency plans of failed stablecoin issuers, the government published a consultation in May with the goal of lowering risk for investors holding stablecoins.

By fLEXI tEAM