The UK government has proposed a new tax rule for decentralized finance (DeFi) lending and liquidity pool transactions, known as the "no gain, no loss" (NGNL) rule. This regulation would defer capital gains tax until a "real economic transfer of assets" occurs. Under this proposal, depositing crypto assets into lending protocols or automated market makers (AMMs) would not be considered a taxable event. Taxes would only be applied when the assets are ultimately sold or exchanged, resulting in actual gains or losses.
UK Proposes 'No Gain, No Loss' Tax Rule for DeFi Transactions
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