UK Government to Update Crypto Tax Guidance In 2019
October 30, 2018 4:23 pm
UK officials have formed various regulatory steps around cryptocurrencies and the Distributed Ledger Technology (DLT). The Cryptoasset Taskforce’s report noted that the blockchain could be beneficial to the financial service sector & other industries.
The HM Treasury, Financial Conduct Authority and the Bank of England will encourage the development of DLT and cryptocurrency-related activities in the UK.
The report said that authorities’ immediate priority is to decrease risks with the current generation of cryptocurrency. The other applications of DLT have the potential to deliver advantages in both financial services and other sectors. According to the report, authorities don’t think that there are regulatory barriers for the further adoption of DLT.
The report included:
“Current guidance on the tax treatment of crypto assets is set out on HMRC’s website. HMRC will further update their guidance by early 2019, drawing on the Taskforce’s work.”
The UK government is also trying to formalize rules around Initial Coin Offerings (ICOs) that take place in the country. The report also said that the government would issue a consultation at the beginning of 2019. This would be helped to find out whether an extension of the regulatory perimeter is required.
The crypto asset task force also added that the government would take action to reduce risks that digital currency poses to consumers and market integrity. The government will also prevent the use of cryptocurrencies in illegal activities and monitor threats that are related to financial stabilities.
The report also calls for clarification of Initial Coin Offerings (ICOs) and financial instruments that refer cryptocurrencies and tokens listed on exchanges.