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Aave founder: The UK plans to treat DeFi deposits as "no yield, no loss," Favourable Information for encryption lending tax treatment.
According to CoinWorld news, Aave founder and CEO Stani.eth stated, “The UK’s HM Revenue and Customs (HMRC) has published its consultation results regarding the tax issues related to DeFi activities (including lending and staking) in the UK. One particularly interesting conclusion is that when users deposit assets into Aave, the deposit itself is not considered a disposal for Capital Gains Tax, thus creating a 'No Gain, No Loss' (NGNL) approach. This is a significant victory for UK DeFi users looking to borrow stablecoins using crypto assets as collateral. I am proud of our Aave Labs team’s involvement in this consultation, advocating for DeFi and ensuring that the tax treatment of interacting with lending protocols reflects economic realities: users do not intend to dispose of their assets when borrowing against collateral to meet liquidity needs. We fully support this practice and hope these changes can be reflected in UK tax law soon.”