The government of the United Kingdom is currently accepting suggestions from companies, professionals, and investors for framing tax policies for decentralized finance (DeFi) activities. In an announcement on Tuesday, the administration said—
“The government is interested in ascertaining whether administrative burdens and costs could be reduced for taxpayers engaging in this activity and whether the tax treatment can be better aligned with the underlying economics of the transactions involved.”
Those wishing to submit their suggestions should do so by Aug. 31.
In April, a set of initiatives was outlined since it has become a global crypto stronghold. As per Economic Secretary John Glen, the UK was conducting “major surgery” on the taxation system to “make it work more easily for crypto.”
the Bank of England could be given the power to appoint administrators to supervise insolvency arrangements of failed stablecoin issuers. The government said they would do so in a published consultation aiming to reduce the risk for investors holding stablecoins.