Her Majesty's Revenue and Customs (HMRC) today issued a public consultation on proposed changes to the tax treatment of decentralized finance (DeFi) lending and staking. The consultation will last for eight weeks from April 27, 2023 to June 22, 2023. The goal of the consultations is to create a system that better aligns the taxation of crypto assets used in DeFi lending and staking transactions with the underlying economic substance while reducing the administrative burden on users. Under the proposed changes, the use of crypto assets in DeFi transactions will no longer be considered a disposal for tax purposes. Conversely, tax dispositions arise when crypto assets are economically disposed of in non-DeFi transactions.