The UK is considering introducing "no yield, no loss" tax rules for DeFi lending and liquidity pool trading.

Odaily Planet Daily reports that the UK government has proposed adopting a "no gain, no loss (NGNL)" tax rule for DeFi lending and liquidity pool transactions. This means that capital gains tax will be suspended until a "real economic transfer of assets" occurs. This implies that when users deposit crypto assets into lending protocols or AMMs, it will no longer be considered a taxable "transfer," and tax will only be levied when the assets are ultimately sold or exchanged, resulting in an actual profit or loss. (CoinDesk)