Golden Finance reported that the UK's HM Revenue and Customs (HMRC) has issued new regulations requiring all cryptocurrency exchanges operating in the UK to collect and retain complete user transaction records starting from January 1, 2026, and to report this data in full to HMRC by 2027, for the purpose of cross-referencing tax information and combating tax evasion related to Crypto Assets. UK tax experts warn that Crypto Asset users must organize their tax affairs by the end of 2026 to avoid potential sanctions.

PANews, November 27, reported that Aave founder Stani Kulechov stated that the UK's HM Revenue and Customs (HMRC) has released the tax consultation results regarding DeFi lending and staking activities, proposing a "No Gain No Loss (NGNL)" tax treatment suggestion, which means that when users deposit crypto assets into protocols like Aave, it is not regarded as a capital gains disposal. If this policy is legislated, it will greatly simplify the reporting burden for users and is seen as a significant victory for DeFi users. The Aave team participated in the consultation process and urged that this policy reflects the economic substance of on-chain interactions.

Stani.eth, the founder of Aave, stated that the consultation results from HM Revenue and Customs indicate that deposits made by users on Aave will not be regarded as a disposal for Capital Gains Tax purposes, which is a significant victory for UK DeFi users looking to borrow stablecoins. He emphasized support for this tax treatment and looks forward to it being reflected in the tax law soon.