A low-profile decision from Britain’s tax office could have outsized effects on the future of decentralised finance, according to Aave founder Stani Kulechov.
Rather than treating every token movement into lending or staking platforms as a taxable disposal, HMRC now views these transfers as neutral events, postponing tax liability until assets are actually sold or exchanged.
Key Takeaways
HMRC now treats DeFi deposits as non-taxable transfers, delaying capital gains until disposal.
Stani Kulechov expects this clarity to encourage institutional and retail participation.
Aave is working on mobile-driven onboarding to make DeFi easier for everyday users.
For years, crypto users faced uncertainty over whether interacting with smart contracts could unintentionally trigger capital gains. Kulechov said the update resolves a long-running debate and gives both seasoned and new users confidence to participate without fear of immediate taxation.
Why This Matters for Retail and Institutions
The new stance removes a major friction point.
Depositing Bitcoin, ether, USDC or USDT into DeFi protocols no longer counts as “getting rid” of the asset — meaning people can borrow, lend, or stake value without generating an automatic tax bill.
Kulechov believes that clarity is particularly meaningful for institutional investors. He argues that large funds were hesitant to engage with DeFi because the tax treatment was undefined, creating compliance headaches. Now, with rules clearer, he expects more regulated participants to explore on-chain lending and collateral markets.
Aave’s Approach: Make DeFi Feel Like Banking
Kulechov also pointed out that regulation alone isn’t enough — accessibility matters.
DeFi has historically appealed to users comfortable with private keys, browser wallets and crypto exchanges. Aave is now developing mobile-first experiences that allow people to move money from traditional bank accounts directly into the protocol while hiding the technical complexity behind the interface.
The goal is simple: if interacting with DeFi feels as familiar as mobile banking or savings apps, adoption widens dramatically.
A Changing Savings Landscape May Accelerate Interest
The timing of HMRC’s ruling intersects with shifting traditional finance dynamics.
The UK government is reducing the annual tax-free allowance for cash ISAs from £20,000 to £12,000 starting in 2027, leaving savers with less room to grow wealth without tax exposure.
Kulechov says this environment could push more people toward platforms like Aave, which offer yield opportunities independent of bank interest rates and allow flexible deposits and withdrawals.
He described Aave’s five-year track record as “battle-tested,” highlighting how decentralised systems can distribute risk through smart contracts instead of concentrating it inside individual banks.
