Earlier this year, Recap coordinated an industry-wide letter to the Chancellor and Treasury Ministers urging the UK government to address the unequal tax treatment of DeFi lending and staking. The current rules treat crypto lending as a disposal, triggering tax - even where no real economic gain exists.
Our letter, co-signed by CryptoUK, UKCBC, Bitcoin Policy UK, Coinbase, Kraken, coinpass and others, called for a “no gain, no loss” framework - similar to traditional securities lending.
We’ve now received a response from the Exchequer Secretary to the Treasury confirming the government is reviewing our concerns as part of its next steps.
While no immediate legislative update was provided, it’s a clear sign our message is being taken seriously.
Recap will continue working with policy groups and partners to keep DeFi tax equality on the agenda. A fairer tax framework is essential for encouraging responsible crypto innovation, removing dry tax charges, and enabling the UK to lead on digital asset finance.
