British Treasury Get information about DeFi staking and lending taxes, whichconsultationOn April 27, HM Revenue and Customs runs until June 22 and asks “professional investors and Companies Engaging in DeFi Activities” to provide opinions on the government’s proposed DeFi taxation.
From the consultation, it was found that A transaction must meet certain criteria to be considered a DeFi transaction. It should involve an initial transfer of crypto assets from the lender to the borrower or through a smart contract where the borrower is obliged to return the tokens.
HMRC Update on DeFi Guidance
I will take time to digest. But here are some pieces:
1. Clear preference to options
2. They agree it needs to be changed
3. Another call for evidence #crypto #tax #accounting #hmrc https://t.co/O6VrTxNUCk—
Jme – UK Crypto Accountant (@CryptoTaxJme) April 27, 2023
In addition, the lender should be entitled to withdraw the same amount of tokens that they originally borrowed or staked.
The aim of this consultation is to Creating a framework that “Corresponding” to the taxation of assets cryptocurrency used in lending and staking DeFi transactions to better At the same time, it makes it easier for users to comply with regulations.
Consultation is the second step of a five-step process, which is followed by legislation drafting, implementation, and follow-up, and finally reviewing and evaluating the changes.
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