Dion Seymour comments on HMRC’s proposed crypto-asset DeFi legislation, in International Tax Review

---

Crypto & Digital Assets Technical Director, Dion Seymour, comments on HMRC’s proposed legislation that DeFi transactions involving certain crypto-assets no longer be subject to capital gains tax, in International Tax Review.

Dion’s comments were published in International Tax Review, 10 May 2023.

Dion argues that there are two camps at the moment, with one saying that the consultation doesn’t go far enough and that more needs to happen:

“People want a broader tax regime for crypto, but no one articulates what that would look like. It was recognised by HMRC that the economic substance of crypto transactions wasn’t necessarily a good reflection of the activity.

“The other camp – in a climate where the policy approach to crypto-assets in the US and other nations creates confusion – will be happy to see steps from the government towards something clear and positive.

“The position of the consultation is sensible because other sectors like banking have the ability to conduct transactions without friction; crypto is treated slightly differently. It has already been well received; we’re the first country to propose this kind of legislation, and it’s wanted.”

---