The UK government is seeking public feedback on DeFi taxation

The UK government is seeking public feedback on DeFi taxation

The UK government is asking the public for information on the taxation of crypto debt and equity in the context of decentralized finance (DeFi).

DeFi is an umbrella term that refers to financial applications built on blockchain technology. This can include anything from lending to lending and stocking sites.

In particular, the government is interested in collecting information on debt collection and hoarding of cryptocurrencies. Her Majesty’s Revenue and Customs (HMRC) evidence request document, Published On Tuesday (05/07), it described the study’s aim to reduce administrative burdens and costs for taxpayers participating in the emerging sector, as well as to further align tax treatment with the underlying economics of transactions.

HMRC is seeking input from investors, professionals and organizations involved in DeFi-related activities, such as technology and financial services companies, trade associations and representative bodies, academic institutions and think tanks, and legal, accounting and tax advisory firms. Interested parties should submit their response by August 31, 2022 through the email provided by the agency.

The UK Government is seeking views on the taxation of # Crypto #Active #Loans and ‘#Employment‘ in context #Finance #distributed (#DeFi)https://t.co/zurvajtNRM

— Cryptofornia.x (@CryptoforniaX) July 5, 2022

Following the request for evidence, the government will publish a summary of responses along with details of its next steps as per the notification.

In April, the government released a list of plans to make the UK a global cryptocurrency powerhouse. Among them was “major surgery” of the tax system to “make it easier for cryptocurrencies to work,” according to Economy Secretary John Glenn.

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In May, the government launched a consultation to empower the Bank of England to appoint trustees to manage insolvency arrangements for insolvent stablecoin issuers.

When it comes to cryptocurrency regulation, a former UK chancellor recently expressed fears that the country is lagging behind its rivals in Europe. As reported by Cointelegraph, Philip Hammond, UK chancellor from 2016 to 2019, said there was a lack of clear direction and coordination when it came to cryptocurrency policy.

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