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Bitcoin Exchanges Under Digital Tax Attack in the UK -Breaking

by Mike Robinson

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HMRC: The UK’s Digital Tax Attack on Bitcoin Exchanges
  • The UK tax system now applies to exchanges.
  • The announcement comes just days after HMRC in the UK stated that Bitcoin exchanges were not eligible for financial exclusions.
  • Amazon (NASDAQ :), Google (NASDAQ :), and Facebook are all included.

Tax attacks are being made in the UK against Bitcoin exchanges. 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. The UK tax authority announced that every online cryptocurrency exchange in the country is subject to tax due to the tax disaster.

With no exception, Amazon, Google, and Facebook are all included to pay tax to the UK’s Exchequer. But, this tax decision seems to be having an enormous downside for Bitcoin exchanges in the nation. It is not a good decision for companies with the intention to offer Bitcoin services.

Coinbase’s (NASDAQ:) tax implementation is a threat because it operates a UK subsidiary. CryptoUK continues to fight the HMRC/Treasury in a small battle. They claim that crypto is treated differently than other assets.

HMRC responded by saying,

Many crypto assets exist, with different features. 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). This new tax system is likely to result in high fees for crypto traders.

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