UK to Defer Taxation on DeFi Deposits Until Asset Disposal

On November 27, the UK's HM Revenue & Customs (HMRC) unveiled a tax reform proposal concerning decentralized finance (DeFi). The new proposal stipulates that when users deposit cryptocurrencies into lending protocols or liquidity pools, this action will not be considered a 'disposal' of assets, thereby deferring capital gains tax until the actual sale of the assets. Under the current system, deposits into DeFi platforms could be taxed at the time of deposit, imposing excessive tax burdens and complex reporting obligations on users. If implemented, this reform would mean that deposits are not taxed at the initial stage, but only when the assets are actually disposed of...