According to Wu Blockchain, Aave founder Stani Kulechov stated that the latest DeFi tax guidelines from the UK’s HMRC do not treat depositing assets such as USDC and USDT into DeFi as a disposal, and taxes are only levied upon actual sale or exchange. This will reduce compliance costs, benefit both institutions and retail users, and drive growth in DeFi liquidity and lending in the UK. As the tax-free allowance for cash ISAs drops from £20,000 to £12,000 in 2027, the appeal of traditional savings will decrease, making yield opportunities on platforms like Aave potentially more competitive.
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According to Wu Blockchain, Aave founder Stani Kulechov stated that the latest DeFi tax guidelines from the UK’s HMRC do not treat depositing assets such as USDC and USDT into DeFi as a disposal, and taxes are only levied upon actual sale or exchange. This will reduce compliance costs, benefit both institutions and retail users, and drive growth in DeFi liquidity and lending in the UK. As the tax-free allowance for cash ISAs drops from £20,000 to £12,000 in 2027, the appeal of traditional savings will decrease, making yield opportunities on platforms like Aave potentially more competitive.