---
title: "UK Treasury Responds to Industry Call for Fair DeFi Tax Reform "
description: "Following Recap’s industry-wide call for DeFi tax reform, the UK Treasury has acknowledged concerns and is reviewing next steps. Read the latest update here."
published: "2025-03-26T12:00:00.000Z"
updated: "2025-03-26T15:38:30.625200Z"
authors: "Dan Howitt"
---

# UK Treasury Responds to Industry Call for Fair DeFi Tax Reform 

Following Recap’s industry-wide call for DeFi tax reform, the UK Treasury has acknowledged concerns and is reviewing next steps. Read the latest update here.

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](https://recap.io/guides/uk-defi-tax-guide). The current rules treat crypto lending as a disposal, triggering tax - even where no real economic gain exists.

[Our letter](https://recap.io/blog/fair-tax-treatment-for-defi-lending-and-staking), co-signed by [CryptoUK](https://cryptouk.io/), [UKCBC](https://www.ukcbc.co/), [Bitcoin Policy UK](https://bitcoinpolicy.uk/), [Coinbase](https://www.coinbase.com/), [Kraken](https://www.kraken.com/en-gb/), [coinpass](https://www.coinpass.com/) 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.

[Open the PDF](https://cdn.sanity.io/files/l3xzko5p/production/815c36117e5aa4ad4193903c3ab5cf3c5c3501c9.pdf)

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.

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