The UK government’s HM Revenue and Customs (HMRC) is inviting the public to a proposed change to the tax treatment of decentralized finance (DeFi). Lending and staking.

After a call for evidence in 2022, the regulator is soliciting public opinion on how DeFi transactions should be treated for tax purposes.

The proposed changes would ensure that DeFi transactions are not treated as disposals for tax purposes unless crypto assets are “economically disposed of in a non-DeFi transaction.”

Also read: FTX Fallout: Bahamas goes all-in on crypto legislation and aims to be the most progressive in the world

The proposal also includes treating all DeFi returns as revenue and subjecting it to a new levy on miscellaneous revenue to avoid administrative burdens.

The consultation document also notes that the proposed framework will apply to both DeFi and centralized finance (CeFi). The consultation is open to eight weeks to 22.

Continue reading: The fight to regulate the crypto market is heating up in Congress

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