UK Proposes ‘No Gain, No Loss’ Tax Rule for DeFi in 'Major Win' for Users

The U.K. government is working on a new tax framework that could give decentralized finance (DeFi) users a break. Under proposals published this week, HM Revenue and Customs (HMRC) signaled support for a “no gain, no loss” (NGNL) approach to crypto lending and liquidity pool arrangements. Under the current system, when a DeFi user deposits funds into a protocol, even if to monetize those funds or take out a loan against them, the move could be treated as a disposal and trigger capital gains tax. The move ...