HMRC has published its consultation outcome in the UK regarding the taxation of DeFi activities related to lending and staking. A particularly interesting conclusion is that when users deposit assets into Aave, the deposit itself is not treated as a disposal for capital gains tax purposes, creating a ‘no gain, no loss’ (NGNL) approach. This is a major win for UK DeFi users who want to borrow stablecoins against their crypto collateral. I’m proud that our team at Aave Labs participated in the consultation, advocating for DeFi and ensuring that the tax treatment of interactions with lending protocols reflects the economic reality: users are not intending to dispose of their assets when borrowing against their collateral for liquidity needs. We’re fully supportive of this approach and hope to see these changes reflected in UK tax legislation soon. More details: https://www.gov.uk/government/consultations/the-taxation-of-decentralised-finance-involving-the-lending-and-staking-of-cryptoassets/outcome/the-taxation-of-decentralised-finance-defi-involving-the-lending-and-staking-of-cryptoassets-summary-of-responses(Stani.eth)