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U.K. Tax Regulator Toughens DeFi Stance and Crypto Isn’t Happy

  • Treatment as similar to property is inconsistent, critic says
  • Agency provides further information on lending and staking
Ian Taylor
Ian TaylorPhotographer: Paco Freire/SOPA Images/LightRocket/Getty Images
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Getting to grips with crypto on your annual tax bill is already a tough nut to crack, but the U.K. tax authorities are about to make it even harder.

Her Majesty’s Revenue and Customs updated its guidance for the treatment of crypto assets to include further information on lending and staking in decentralized finance on Wednesday, marking the first time it has made a foray into the nascent sector. Crypto investors can stake their tokens on blockchain networks to help validate transactions and earn rewards, usually also paid out in tokens.