Aave founder: The UK tax authority confirms that DeFi deposits are subject to a "no gain no loss" tax treatment

The UK HM Revenue and Customs (HMRC) recently released the results of its DeFi tax consultation, clarifying that users depositing crypto assets on platforms like Aave will not be considered as capital gains tax disposals, and will adopt a "no gain no loss" (NGNL) approach. This policy is a significant benefit for UK users looking to use cryptocurrency as collateral to borrow stablecoins.

Aave Labs founder Stani Kulechov stated that the team actively participated in this consultation to ensure that the tax treatment reflects economic reality.