UK proposes "no gain, no tax" rule for DeFi taxation
Jinse Finance reported that the UK government has proposed a "No Gain, No Loss" tax scheme for cryptocurrency lending and liquidity pool arrangements, which defers the payment of capital gains tax until an actual economic disposal occurs. This proposal has received support from major industry institutions and aims to align tax rules with the actual operational mechanisms of DeFi, reduce users' administrative burdens, and avoid tax outcomes that do not reflect economic substance. The UK government will continue to consult with industry stakeholders to refine the rules. The final plan may exclude tokenized real-world assets (RWAs) and traditional securities, and may require users to report large transactions.
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