Ian Taylor, board advisor at industry lobby group CryptoUK, told CoinDesk in an interview in July that the crypto industry and itsHowever, while Lesperance believes this will simplify things for the industry, Seymour does not.
By going with the authority’s proposed approach – that leans on repo and stock lending rules and would only remove some lending and staking activities from the scope of capital gains tax – complicates the tracking of taxable events, according to Seymour. In its consultation, the HMRC said the “no gain, no loss” option would impose a larger administrative burden, while offering less flexibility to accommodate future legislative changes to match new developments in the DeFi world.
Seymour also noted the potential danger in people thinking there aren’t going to be any taxable events in DeFi. “The general public who already have a very scant knowledge about how tax works and are even less inclined to actually read HMRC guidance, so the education side is still going to be quite critical,” he said.