Last updated on November 17th, 2022 at 01:34 pm
The UK government is seeking public opinion on how to tax loans and staking for crypto assets in the context of decentralized finance (DeFi).
The government is particularly keen on learning more about the taxes on crypto-asset loans and staking. In a call for evidence paper that was released on Tuesday, Her Majesty’s Revenue and Customs (HMRC) said it wanted to find out if administrative costs and burdens for taxpayers in the new industry could be lessened and if the tax treatment could be more in line with how the transactions work.
Investors, experts, and groups engaged in DeFi-related activities, such as technology and financial services companies, trade associations and representative bodies, educational institutions and think tanks, and legal, accounting, and tax advisory firms, are among the groups that HMRC is looking for input from. Responses are due by August 31, 2022, and anyone who wants to do so must send them to the agency’s email.
The notice says that after the call for evidence, the government will put out a summary of the answers and information about what will happen next.
The government unveiled a set of initiatives in April to make the UK a leader in the cryptocurrency industry. One of the initiatives included an extensive surgery on the tax code to make it function more smoothly for cryptocurrency.
In May, the government started a discussion about giving the Bank of England the power to choose administrators to oversee the plans for stablecoin issuers that have gone bankrupt.
An ex-Chancellor of the United Kingdom has expressed concern that the nation is lagging behind its rivals in Europe when it comes to cryptocurrency legislation.
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