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The UK tax authority adopts DeFi "no gain, no loss" tax treatment, and the founder of Aave calls it a major victory for users.
PANews, November 27, reported that Aave founder Stani Kulechov stated that the UK's HMRC has published tax consultation results regarding DeFi lending and staking activities, proposing a “No Gain No Loss (NGNL)” tax treatment suggestion, meaning that when users deposit encryption assets into protocols like Aave, it is not considered a capital gains disposal. If this policy is legislated, it will greatly simplify the reporting burden for users and is seen as an important 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.