UK Proposes DeFi Tax Breaks, Delaying Gains Until Tokens Are Sold

[madtrader]

The UK’s HMRC has proposed a “no gain, no loss” framework for DeFi activity, meaning users would owe capital gains tax only when they sell their underlying tokens—not when they lend, borrow, or provide liquidity. Industry leaders from Aave and Relay Protocol praised the move as a major step forward for regulatory clarity.

[Nahid Hossen]

Taxing only at sale is a big relief for anyone using DeFi actively.