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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups 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, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.