The UK is about to mandate the declaration of crypto holdings on self-assessment tax returns.

The move was announced as part of the UK’s latest move. annual budget It went public on March 15th and is expected to raise another £10m for the government.

UK citizens will have to declare their cryptocurrency holdings from next year, the tax year ending April 2025. Under the change, virtual currency assets must be “separately identified” on the form.

based on separate document Cryptocurrency holders issued by HM Revenue and Customs are required to declare profits on the Capital Gains Form and are subject to tax if the investment is sold for profit.

There is no tax on holding virtual currency.

Increase in crypto regulation

The UK aims not only to make cryptocurrencies taxable, but also to pave the way for regulating the cryptocurrency industry.

The country’s parliament is debating cryptocurrency legislation, and in a recent debate on the issue, most members agreed that rules would bring more certainty to the sector by eliminating regulatory gaps. It became clear that

However, it remains unclear what form these rules will take. At the time, Finance Minister Jeremy Hunt said he would hold several “roundtables” to find the best way forward.

The Treasury has issued its first set draft rules We are conducting public consultations for the crypto industry in February.

industry rules

The new rules cover things like onboarding to trading platforms, operating blockchain nodes, performing payment transactions or transfers, mining payments, and much more within the crypto industry.

Additionally, the regulation also covers exchanges and companies that offer crypto-related services in the UK. Under this rule, both exchanges and companies offering services in the UK must obtain a license from the Financial Conduct Authority (FCA) to operate in the UK.

In addition, companies are subject to minimum capital and liquidity requirements and are subject to anti-money laundering and terrorist financing requirements.

The FCA leads regulation of the sector.

Posted In: UK, Regulation

By Jules

Leave a Reply