Dion Seymour comments on proposed changes to DeFi lending, in CoinDesk, Yahoo Finance and Markets Insider

---

Crypto & Digital Assets Technical Director, Dion Seymour, comments on HMRC’s proposal to limit the activities that trigger capital gains tax charges for DeFi lending, in CoinDesk, Yahoo Finance and Markets Insider.

Dion’s comments were published in CoinDesk, and syndicated in Yahoo Finance and Markets Insider, 02 May 2023.

“This is a positive step for the cryptoasset industry in the UK as whilst regulators appear in the US to be creating confusion these moves aim to provide certainty for the UK industry. However, as the majority of cryptoasset owners have limited understanding of the UK tax system, with HMRC market research indicating that as few as 1 in 4 cryptoasset owners have read the HMRC crypto guidance.

“We applaud HMRC for being the first tax administration to provide specific rules for DeFi. However, DeFi is a complex area, and by following similar rules to the “repo legislation”, an opportunity to simplify the rules may have been lost.”

---