The UK Her Majesty’s Revenue and Customs (HMRC), which is a non-ministerial department that handles tax collection. Recently, it reveals that crypto exchanges will be under a new tech tax. Also, The Telegraph reports on Nov 28 that crypto platforms are now subject to a 2% digital services tax.
Furthermore, The UK HMRC also confirms that crypto assets are not financial instruments. More so, this makes them not able to claim an exemption for being a financial marketplace.
Additionally, The UK HMRC notes that cryptocurrencies do not represent commodities, financial contracts or money. Then, it is unlikely that crypto-asset exchanges can enjoy the exemption for online financial marketplaces.
Already, some pro-cryptocurrency groups within the country are calling for changes. Also, The CryptoUK group affirms that treating cryptocurrencies differently from other assets is just unfair.
However, it’s unlikely that UK regulators will have a change of mind about the issue. Of course, this is because the country seems intent on regulating the market. Furthermore, The Financial Conduct Authority (FCA) is taking steps to educate investors and warn market players against any violations.
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