Aave founder: UK plans to classify DeFi deposits as "no gain, no loss," benefiting crypto lending tax treatment

BlockBeats News, November 27, Aave founder and CEO Stani.eth posted that "HM Revenue & Customs has published the results of its consultation on the taxation of DeFi activities (including lending and staking) in the UK. A particularly interesting conclusion is that when users deposit assets into Aave, the deposit itself is not considered a disposal for capital gains tax purposes, thus creating a no gain, no loss approach. This is a major victory for UK DeFi users who wish to borrow stablecoins using cryptocurrency as collateral."

We advocate for DeFi and ensure that the tax treatment of interactions with lending protocols reflects economic reality: users who borrow against collateral to meet liquidity needs do not intend to dispose of their assets. We fully support this approach and hope these changes will be reflected in UK tax law as soon as possible."