UK Government Seeks Views on DeFi Taxation

The deadline for submitting comments is Aug. 31.

AccessTimeIconJul 5, 2022 at 9:48 a.m. UTC
Updated May 11, 2023 at 5:05 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

The U.K. government is seeking views from investors, professionals and companies on taxing decentralized finance (DeFi) activities.

  • Specifically, the government wishes to gather evidence on the taxation of crypto-asset loans and staking, according to an announcement Tuesday.
  • "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 announcement read.
  • Those wishing to submit evidence have until Aug. 31 to do so.
  • The government outlined a set of initiatives in April to make the U.K. a global crypto stronghold. Among them was conducting "major surgery" on the taxation system to "make it work more easily for crypto," according to Economic Secretary John Glen.
  • In May, the government published a consultation aiming to reduce risk for investors holding stablecoins by giving the Bank of England power to appoint administrators to oversee insolvency arrangements of failed stablecoin issuers.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



Read more about