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Crypto exchanges in the United Kingdom are subject to a 2% tax, which is...

source-logo  thecoinrepublic.com 29 November 2021 15:48, UTC
  • Following an amendment to the laws for Her Majesty’s Revenue and Customers, crypto exchanges in the United Kingdom will now be required to pay a new digital service tax, according to a Finbold article
  • The globe has recently been debating the general approach to how crypto will be regarded in the future
  • Regulators in the United Kingdom have been increasingly severe on cryptocurrency exchanges, including banning Binance from the country due to ineffective anti-money-laundering measures

Following an amendment to the laws for Her Majesty’s Revenue and Customers, crypto exchanges in the United Kingdom will now be required to pay a new digital service tax, according to a Finbold article. The tax was introduced in April as a way to ensure that huge tech businesses paid the correct amount. The exchanges will not be eligible for a financial markets exemption since the HMRC does not consider digital assets to be financial instruments.

The globe has recently been debating the general approach to how crypto will be regarded in the future. Exchanges will not benefit from the exemption for online financial markets, according to HMRC, because bitcoin and other crypto do not represent money or financial contracts. The concept of paying a digital service tax has also sparked controversy; Ian Taylor, the head of CryptoUK, branded the measure regressively. He also said that the Financial Conduct Authority’s policies will be damaging.

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Regulators in the United Kingdom have been increasingly severe on cryptocurrency exchanges, including banning Binance from the country due to ineffective anti-money-laundering measures. The new legislation just adds to the murky situation in which there are no taxes on crypto assets in the United Kingdom, and anybody holding them as a personal investment will be subject to capital gains taxes on their earnings.

According to data, Bank of England governor Andrew Bailey has blamed cryptocurrency for a fresh wave of criminal behavior. He believes the new digital payment method is giving another way of payment for persons who wish to engage in illegal behavior. Other well-known financial figures have expressed similar worries. J.P. Morgan CEO Jamie Dimon has stated that further crypto rules would undoubtedly emerge, and that digital assets may be genuine, and that the government will regulate them as such. No matter what anyone in the room thinks, no matter what any libertarian says, no matter what anyone thinks about it, as Dimon stated.

thecoinrepublic.com