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How UK’s shock DeFi tax rules could torpedo London’s crypto and fintech boom: ‘It could just drive trading to Portugal’

Fintechs may need to scale down activity if users step back from crypto investments over fear of a tax hit

By Penny Sukhraj
Shoreditch Grind espresso bar on Silicon Roundabout in London's Tech Hub. Fintechs may need to scale down activity if users step back from crypto investments over fear of a tax hit
Shoreditch Grind espresso bar on Silicon Roundabout in London's Tech Hub. Fintechs may need to scale down activity if users step back from crypto investments over fear of a tax hit Photo: Alamy

The UK tax authority’s approach to taxing DeFi transactions may drive down trading volumes and make the market less liquid.

That’s according to DLA Piper partner Jason Collins, who told Financial News that fintechs may need to scale down activity if users step back from crypto investments over fear of a tax hit, which could also be applied retroactively.

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