Interest on Crypto but reinvested

mancmanc

Holding crypto on some sites now comes with interest. on the site I use, I get interest in the crypto currency, not in £.
So for example, if I hold 0.0500 units of bitcoin, I might get an additional 0.0025 bitcoin if the interest rate is 5% per year.

annual allowance says I can earn £1000 of interest per year before paying tax on it. My question is, if I go over this amount and pay tax on my interest earnings, but the interest has stayed to increase my asset, would I not then pay tax again on that interest when I finally do sell it as it will look like I have made more capital gains than I actually have made? 

I wondered if the same will apply to Crypto as dividend would shares?..."If the company pays out cash dividends, you will owe taxes on those payments even if you decide to reinvest the cash received. If however, the company reinvests your dividends to purchase additional shares, you will not owe taxes until you sell those shares."

But to complicate it further, out interest will get paid in nexos own crypto, rather than the crypto we earned the interest for holding

Jeremy535897

https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto21200
The base cost of the relevant cryptocurrency will be increased by the amount taxed as income.