The recent HMRC guidance on decentralised finance (DeFi) could mark a turning point for crypto lending and borrowing in the UK, according to Stani Kulechov, founder of Aave.

The clarification, which follows a multi-year consultation process, states that depositing digital assets or stablecoins such as USDC or USDT into DeFi platforms will not be treated as a taxable disposal, at the point of deposit. In other words, users who lend, stake, or borrow against their crypto holdings will not trigger a capital gains event simply by depositing their assets on DeFi platforms.

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Capital gains tax would only apply when a user genuinely disposes of their assets, by selling, converting, or otherwise cashing…