UK government consults people on DeFi tax plan

The UK government is asking the public to comment on the taxation of crypto loans and staking in the DeFi sector.

Specifically, on July 5, the UK Tax and Customs Service (HMRC) published a report seeking input as well as collecting evidence on the taxation of loans and staking money. encryption in the DeFi space.

At the same time, HMRC also emphasized the concern that there is any possibility to reduce the administrative burden, the costs for taxpayers to engage in this activity and that the tax treatment may be more in line with the value of the tax. underlying economics of the related transactions or not.

Local citizens and stakeholders have until August 31 to submit their responses via email provided by the agency. Following the call for evidence, the government will publish a summary of the responses along with details of the next decisive steps.
However, this can be seen as the next significant step taken by the UK government in its approach to the crypto industry. Because the Bank of England (BOE) has been determined to accelerate the construction of a regulatory framework to “strangle” Bitcoin after Deputy Governor Jon Cunliffe urged the government to act quickly to prevent the danger of money. encode. He even bluntly stated that the value of crypto could plummet to zero in the future.

Notably, the above event coincided with the time when the UK FCA launched a crypto risk warning campaign on TikTok and Youtube and expanded its investigation to 300 cases involving crypto companies. , including Binance. Therefore, no one can think that the UK will really "transform" to be friendly to the industry.

However, by April 2022, the situation has completely changed when the UK Treasury has released a list of plans to make the country a global cryptocurrency power. On the other hand, according to Economy Secretary John Glen, the legal transformation of the country is a “major surgery” to the tax system to make it easier for the country to operate on cryptocurrencies.

Not only that, in May 2022, the British government conducted a consultation to give the Bank of England the authority to appoint administrators to manage bankruptcy arrangements for issuers. stablecoins failed.

In fact, when it comes to cryptocurrency regulation, many British politicians have recently expressed concern that the country is lagging behind its European competitors. Therefore, they urgently need a strong push from the government to help Britain gradually catch up with the trend of the times.