Aave founder: The UK's new tax rules simplify taxation and promote institutional adoption of cryptocurrency

According to Yahoo Finance, Aave founder Stani Kulechov stated that the recent DeFi tax guidelines released by the UK's HM Revenue and Customs (HMRC) may mark a turning point for crypto lending in the UK.

The document indicates that depositing digital assets or stablecoins like USDC or USDT into a DeFi platform will not be considered a taxable disposal at the time of deposit. In other words, users depositing their cryptocurrency assets into DeFi platforms for lending, staking, or borrowing will not trigger capital gains tax. Capital gains tax will only be due when users actually dispose of their assets (for example, selling, converting, or otherwise cashing out), rather than merely transferring tokens in or out of a DeFi protocol.

Under the new approach, these routine DeFi transactions fall into the category of "no gain, no loss," thus providing investors with clearer and more practical tax guidance. Kulechov added that the simplified tax method reduces the burden, enabling broader adoption by institutions while also streamlining operations for regular retail users.