Crypto Regulations in United Kingdom
Regulations in the United Kingdom allow residents to buy and sell cryptocurrencies. In exchange, the sale of crypto derivatives to retail consumers has been banned in the United Kingdom by the country’s Financial Conduct Authority (FCA) beginning January 6, 2021.
Source: Freeman Law
UK cryptocurrency regulations allow users to buy and sell cryptocurrencies – but due to recent regulatory moves by the UK’s financial regulatory, the FCA, trading of cryptocurrency derivatives is banned.
Source: Coin Firm
Cryptocurrencies are not regulated in the United Kingdom and there is no compensation for consumers who lose their digital assets.
Source: Reuters
The UK has no specific legislation governing cryptocurrency but has slowly developed its approach through case law. Cryptocurrency is not recognized as ‘currency’ or a form of legal tender, however, it is now considered ‘property’.
Source: Moorebarlow
Digital assets are not “goods” within the meaning of s 61(1) of the Sale of Goods Act 1979. As the CCL response to the Law Commission of England and Wales Call for Evidence on Digital Assets has identified, digital assets currently do not fit into the definition of goods in the Act. They cannot be considered as personal chattels as they do not satisfy the tangibility criterion for this purpose. The same is true in relation to Scotland as they are not corporeal moveables, with the definition providing that “goods” includes all corporeal moveables except money. In contrast to digital assets generally, some types of digital assets, such as stablecoins and Central Bank Digital Currencies, could be considered more akin to money.
Source: ABDN
Anybody who resides in the UK and holds cryptoassets will be taxed on any profits made on them. This tax is Capital Gains Tax (CGT), meaning you pay tax on the difference between what your cryptocurrency cost you, and how much you sold it for. You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount). The Capital Gains tax-free allowance for 20/21 is £12,300. For example, you purchased an asset with cryptocurrency for £12,000. You brought that cryptocurrency for £8,000. You are required to pay either 10% or 20% (depending on your income) Capital Gains tax on the money made on the cryptocurrency, £4,000, unless it is within your tax-free allowance of £12,300. CGT is due when a disposal has been made and a profit has been made and will need to be reported on a self-assessment tax return.
Source: TBL Accounts
In order to operate in the United Kingdom, crypto exchanges must register with the FCA, or, alternatively, apply for an e-money license. Similarly, bitcoin ATMs are legal in the United Kingdom, provided that they are licensed and regulated by the FCA. Currently, the United Kingdom has the most machines in a European country, with over 250 bitcoin ATMs across the country.
Source: Freeman Law
In the UK, the FCA must be authorized to operate an exchange that enables trading crypto-assets, which are financial instruments under the Markets in Financial Instruments Directive II (MiFID II). Businesses authorized by FCA must comply with FCA’s crypto assets. Bitcoin regulations are an example of these crypto assets.
Source: Sanction Scanner
Britain set out a detailed plan on Monday to exploit the potential of crypto assets and their underlying blockchain technology to help consumers make payments more efficiently. As part of creating a global crypto-asset hub, financial services minister John Glen said Britain will legislate to bring some stablecoins under the regulatory net such as complying with existing payment rules.
Source: Reuters
Neo-bank Revolut has added 22 new cryptocurrencies, bringing its UK offering to more than 80 tokens. Newly available tokens include the likes of ApeCoin, Request, and Ethereum Classic. Along with popular tokens like bitcoin and Ethereum, it brings Revolut’s total number of tradeable tokens to 82.
Source: Forbes
The U.K. introduced a bill to make it easier for law enforcement agencies to seize, freeze and recover crypto assets when used for criminal activities such as money laundering, drugs, and cybercrime, the government said Thursday. The 250-page Economic Crime and Corporate Transparency bill, first promised in May, was introduced by the Home Office, Department for Business, Energy & Industrial Strategy, Serious Fraud Office and Treasury and covers more than just crypto. It had its first reading in the House of Commons on Thursday, with the second reading scheduled for Oct. 13.
Source: Coindesk
The new law will make it easier and quicker for law enforcement agencies such as the National Crime Agency to seize, freeze and recover crypto assets — the digital currency increasingly used by organized criminals to launder profits from fraud, drugs, and cybercrime,” said the government. “Strengthening powers in the Proceeds of Crime Act will modernize the legislation to ensure agencies can keep pace with the rapid technological change and prevent assets from funding further criminality.
Source: Cointelegraph
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Source: FCA
