UK proposes favorable tax framework for DeFi investors

The UK's tax authority is pursuing a more favorable tax framework for users of decentralized finance (DeFi), CoinDesk reported. While the current system can treat the act of depositing crypto into a protocol for lending or liquidity as a taxable disposal of assets, a proposed "No Gain, No Loss" (NGNL) approach would change this. Under the new framework, capital gains tax would be deferred until the assets are actually converted to cash and a real profit or loss is realized. The CEO of Aave described the move as a major victory for DeFi users in the UK.