Why The UK Opened A Consultation On Crypto, DeFi, And Staking Taxation

The HMRC is asking for input from investors, professionals, and organizations involved in DeFi-related activities. The government of the United Kingdom is asking the public for input on the taxation of crypto asset loans and staking in the context of Decentralized Finance (DeFi).DeFi is an umbrella term that refers to financial applications that are built on top of blockchain technology. This could include anything from lending to borrowing and staking platforms.In particular, the government is interested in gathering information on the taxation of crypto asset loans and staking. Her....

Majority of the top-100 DeFi tokens broke out of three week long bearish phase and registered double digit gains over the past week. Welcome to Finance Redefined, your weekly dose of key decentralized finance (DeFi) insights, a newsletter crafted to bring you some of the major developments over the last week.This past week, the DeFi ecosystem got recognition from the United Kingdom government, as they sought public feedback on taxation of the DeFi ecosystem, especially staking and lending.MakerDAO is looking to collaborate with the traditional banks, which would take place after the....

“HMRC treats crypto assets as property for tax purposes. However, this is inconsistent with the approach currently being adopted by Government and other regulatory bodies in the UK," said the executive director of CryptoUK Ian Taylor Her Majesty’s Revenue and Customs (HMRC), the U.K.’s tax agency, on Wednesday, has released a controversial set of guidance that could affect innovation in Decentralized Finance (DeFi).The updated regulation focuses on the treatment of digital assets specifically for DeFi lending and staking in the UK, and whether returns or rewards from these services are....

The Australian Securities and Investments Commission (ASIC) recently opened a consultation for establishing methods and best practices for regulating crypto assets. The consultation paper seeks guidance on which crypto-assets should qualify as underlying assets, and how to make this determination. The proposal could signal the emergence of new crypto-based products in the Australian market. Australian Regulator Seeks Advice The Australian Securities regulator issued a public consultation paper to decide how to regulate cryptocurrency-based products. The paper, titled “ASIC consults....

The U.S. Internal Revenue Service appears to be blinded by its own enthusiasm on crypto taxation, instead creating an excessive financial burden. The United States Internal Revenue Service (IRS) stretches the tax rules to fit its cryptocurrency agenda. At no time in tax history has pure creation been a taxable event. Yet, the IRS seeks to tax new tokens as income at the time they are created. This is an infringement on traditional tax principles and problematic for several reasons.In 2014, the IRS stated in an FAQ within IRS Notice 2014-21 that mining activities would result in taxable....