Proposed Changes to UK Taxation Regulations for DeFi Lending and Staking

The United Kingdom government is currently soliciting feedback on potential adjustments to the taxation regulations concerning DeFi lending and staking. The proposal involves a change in the treatment of cryptoasset use in DeFi transactions, wherein said use would no longer trigger a tax disposal. Instead, a tax disposal would only occur when the cryptoassets involved are economically disposed of outside of DeFi transactions.

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