United Kingdom is working on updated crypto taxes
Industry News
According to British media, UK crypto traders should be ready to face higher fees and commissions yet-to-be-introduced by the British-based trading platforms. The changes are explained by updated taxes.
HM Revenue and Customs forced crypto exchanges based on the territory of Great Britain to pay a 2% tax imposed on digital services. Such a tax appeared in 2020 but primarily it was referred to marketplaces, search engines, and social networking operators.
The HMRC representative commented on the changes: “A large variety of digital assets does exist, and those assets are included in none of the categories: traditional assets, goods, or financial contracts. This said, Bitcoin exchanges couldn’t use the tax privileges introduced for online financial marketplaces.”
The UK requirements for crypto trading platforms are becoming even tougher, as the licensing procedure for a crypto exchange is complicated enough.
CryptoUK, a self-regulatory organization, highlights that updated taxation is a threat for investors and traders more than for trading platforms that are going to increase fees and commissions.
Great Britain is now home to 18 crypto trading platforms; this is why new taxes may affect the balance.
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