Aave founder: The UK plans to treat DeFi deposits as "no gains and no losses", which will benefit the tax treatment of crypto lending

According to Foresight News, Aave founder and CEO Stani.eth issued an article saying, "Her Majesty's Revenue and Customs (HMRC) has announced the results of its consultation in the UK on the taxation of DeFi activities (including lending and pledging). A particularly interesting conclusion is that when users deposit assets into Aave, the deposit itself is not considered a disposal for capital gains tax, thus forming a "no gain, no loss" (NGNL) approach. This is a major win for UK DeFi users looking to borrow against stablecoins as collateral. I am proud that our team at Aave Labs has participated in this consultation and ensures that the tax treatment of interacting with lending protocols reflects the economic reality: users do not intend to dispose of their assets when borrowing against collateral and hope that these changes will be reflected in UK tax law soon.”
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