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Cryptocurrency
29 Nov 2021
UK Crypto Exchanges Will Be Taxed Under New Law
The Index Today
According to the latest update on Her Majesty’s Revenue and Customs HMRC regulations, a new digital tax of 2% will be imposed on investors. This tax will applied to all cryptocurrency exchanges within the country.
Since the HMRC does not consider digital assets as financial instruments, the transactions are not eligible for any kind of financial exemptions and will be subject to a digital services tax. The prior tech tax which was introduced back in April 2020 was aimed at targeting major tech corporations such as Facebook and Google will not also include cryptocurrency exchanges.
The regulator for the HMRC’s new classification said, “There are a wide variety of crypto assets, each with different characteristics. It said that because cryptocurrencies do not represent commodities, financial contracts, or money, it is unlikely that crypto-asset exchanges can benefit from the exemption for online financial marketplaces.”
On the other hand, the trade body representing digit assets considers the tax to be unfair as it will be end up on traders and investors. The new tax will add to the already existing burdens on the industry inclusion the difficult licensing process.
©Photo: finbold
