The UK's new tax regulations are favorable for cryptocurrency

2025-12-06 01:58:51

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The UK tax authority has just introduced a new regulation that makes it easier for users to utilize crypto lending platforms without being taxed immediately upon depositing assets. HMRC confirms that depositing Bitcoin, USDC, USDT, or other digital assets into lending, staking, or borrowing platforms is not considered a taxable transaction. Taxes only arise when users actually sell, exchange, or withdraw the assets.

Aave founder Stani Kulechov stated that this policy is the result of years of discussion and provides much-needed clarity for both individual and institutional investors. The “no gain, no loss” rule allows users to use collateral without triggering tax obligations, thereby promoting wider DeFi adoption. The new regulation comes at a time when traditional savings options in the UK are less attractive, prompting many to seek better yields. Kulechov affirms that DeFi protocols like Aave offer stable and flexible returns, increasingly attracting users.

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