ChainCatcher reported that the UK’s HM Revenue & Customs (HMRC) recently released the results of its DeFi tax consultation, clarifying that depositing crypto assets into platforms such as Aave will not be considered a capital gains tax disposal event, and will instead adopt a “no gain no loss” (NGNL) approach. This policy is a significant benefit for UK users who wish to use cryptocurrencies as collateral to borrow stablecoins.
Aave Labs founder Stani Kulechov stated that the team actively participated in the consultation to ensure that the tax treatment reflects economic reality.