UK Proposes Revolutionary 'No Gain, No Loss' Tax Rule for DeFi Lending and Staking

The United Kingdom has unveiled groundbreaking tax reforms for decentralized finance (DeFi) activities, proposing a "no gain, no loss" taxation model. This landmark regulatory change aims to eliminate capital gains tax liabilities for users participating in DeFi lending and staking transactions where no actual economic gain is realized. The proposed framework represents a significant regulatory advancement that could position the UK as a global leader in crypto-friendly legislation. Industry experts hail this development as a major victory for DeFi adoption, potentially accelerating mainstream integration of decentralized financial protocols and services across the cryptocurrency ecosystem including major assets like ETH, BTC, and other digital tokens.