UK tax authorities propose ‘no profit, no loss’ tax treatment for DeFi, Aave founder regards it as a major user achievement

On November 27th, Stani Kulechov announced that HMRC has proposed a ‘No Gain No Loss’ tax treatment for DeFi. This is significant for Aave users, as depositing crypto will not trigger capital gains tax.

If implemented, this legislation will simplify reporting duties for DeFi users, marking a noteworthy success. The Aave team actively participated in discussions to advocate for a tax system reflecting the true nature of on-chain activities.