The UK’s Treasury department has sought public feedback on proposed regulatory changes to simplify the DeFi tax process and reduce the “administrative burden” for taxpayers.
The Treasury is soliciting feedback on a potential new regime that may change how lending and borrowing on decentralised finance (DeFi) protocols are taxed.
On April 27, it launched a consultation requesting all stakeholders to send their responses on the government’s proposed DeFi tax treatment by June 22.
It has reached out to investors, professionals, firms engaged in DeFi activities, and related representing organisations and the think-tanks for feedback.
The proposed changes would exempt cryptocurrency used in DeFi transactions from tax treatment that typically results in a Capital Gains Tax (CGT).
For instance, when cryptocurrency is sold in a non-DeFi transaction, CGT would be applicable, and a taxable event would take place.
Robinhood Launches Robinhood Connect
Crypto trader Robinhood Markets has launched the “Robinhood Connect” app, dubbed as a new way to access fiat-to-crypto on-ramp for self-custody wallets and DApps. At Consensus 2023 summit on April 27, it unveiled the “Robinhood Connect”, which allows fiat-to-crypto transactions with features to accommodate decentralized applications (DApps) and self-custody wallets.
Since developers can include Robinhood Connect directly into applications, it offers a connection with Web3 projects. Customers no longer need to open the Robinhood website or app separately to log in and complete transactions since their Robinhood credentials are natively accessible in DApps.
Cogni Launches Soulbound NFTs
Cogni, a New York-based neo-bank, has revealed its new initiative to transfer know-your-customer (KYC) data into Web3 using Soulbound non-fungible tokens, aimed at improving users’ experience by melding Web3 features and digital banking. Cogni offers US Federal Deposit Insurance Corporation coverage through a traditional bank. The NFTs are built on the Polygon network and carry customers’ Web2 KYC verification information registered during
account creation. In January, Cogni launched its multi-chain noncustodial crypto wallet that allows users to send or receive cryptos and NFTs. DApps can decrypt the owner’s consent for decentralized applications to access the token
