HMRC: Bitcoin Exchanges Under Digital Tax Attack in the UK By CoinQuora –

HMRC: Bitcoin Exchanges Under Digital Tax Attack in the UK
  • exchanges are now subjected to paying tax in the UK.
  • This comes a few days after the UK HMRC said that Bitcoin exchanges are not eligible for financial exemptions.
  • Amazon (NASDAQ:), Google (NASDAQ:), and Facebook (NASDAQ:) are all included.

Bitcoin exchanges are facing tax attacks in the UK. This occurred a few days after the HMRC’s recent statement that the Bitcoin exchanges are not eligible for financial services exemptions.

Today, the UK authority has forcefully dragged all the existing Bitcoin exchanges into their Treasury’s tech tax. With this tax tragedy to Bitcoin exchanges in the country, the UK tax authority has aired that all the online crypto exchanges operating also are subjected to pay tax.

With no exception, Amazon, Google, and Facebook are all included to pay tax to the UK’s Exchequer. However, the tax decision appears to be having a huge downside to Bitcoin exchanges in the country. On one hand, this looks somewhat unfriendly for crypto companies that have the goal to offer Bitcoin services, particularly in the UK.

Additionally, the Bitcoin exchange tax implementation poses a direct threat to Coinbase (NASDAQ:) exchange since it has its subsidiary in the UK. Meanwhile, at writing time, CryptoUK is fighting a humble battle with the HMRC and the Treasury based on claims that they are being unfair in the way they treat crypto differently from other financial assets, according to the report.

Responding to this, the HMRC said,

There are many crypto assets, each of which has different characteristics. Since cryptocurrencies don’t represent money, commodities, or financial contracts, it is unlikely that cryptocurrency asset exchanges will be able to benefit from the exemption for online financial markets.

Additionally, CryptoUK’s director Ian Taylor the authority’s decision is a heavy blow to crypto exchanges that follows the “arduous” licensing system by the Financial Conduct Authority (FCA). Also, this new tax implementation is liable to bring high fees to crypto traders.

Continue reading on CoinQuora

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.