The UK's taxation arm, HM Revenue, and Customs, has launched a consultation seeking input on a new tax regime for decentralized finance (DeFi) transactions. Under the proposed legislative changes, crypto used in DeFi transactions wouldn't be treated as a disposal for tax purposes. Instead, capital gains tax would apply when cryptocurrencies are disposed of in a non-DeFi transaction. The consultation aims to establish a framework that "better aligns" the taxation of crypto assets used in DeFi lending and staking transactions while making it easier for users to comply with regulations. The consultation runs until June 22.