{"id":373672,"date":"2021-11-29T05:13:18","date_gmt":"2021-11-29T02:13:18","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/uk-digital-services-tax-targets-crypto-exchanges\/"},"modified":"2021-11-29T05:13:18","modified_gmt":"2021-11-29T02:13:18","slug":"uk-digital-services-tax-targets-crypto-exchanges","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/uk-digital-services-tax-targets-crypto-exchanges\/","title":{"rendered":"# UK digital services tax targets crypto exchanges"},"content":{"rendered":"

“# UK digital services tax targets crypto exchanges <\/strong>”
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A recent update to Her Majesty\u2019s Revenue and Customs (HMRC) regulations has introduced a digital services tax that will be levied on cryptocurrency exchanges operating in the United Kingdom.<\/p>\n

Crypto exchanges in the UK will now have to pay a 2% digital services tax according to a Telegraph report<\/a>. Britain\u2019s tax authority, HMRC, does not recognize digital assets as financial instruments and therefore exchanges are not eligible for financial exemptions.<\/p>\n

On Nov. 28, the authority included cryptocurrency exchanges under the Treasury\u2019s tech tax. The digital services tax on revenue was introduced<\/a> in April 2020 targeting social media<\/a> and search giants such as Facebook and Google.<\/p>\n

The latest blow to crypto exchanges is a result of the HMRC\u2019s classification of crypto assets, as the regulator explained:<\/p>\n

\u201cThere are a wide variety of crypto assets, each with different characteristics. It said that because cryptocurrencies do not represent commodities, financial contracts, or money, it is unlikely that crypto-asset exchanges can benefit from the exemption for online financial marketplaces.\u201d<\/p><\/blockquote>\n

According to CryptoUK, the trade body representing the digital asset sector in Britain, the tax is unfair and is likely to be passed on to investors and traders.<\/p>\n

Executive Director Ian Taylor stated that treating cryptocurrencies differently to other financial instruments such as stocks or commodities is detrimental to the crypto sector.<\/p>\n

He added that it is another heavy blow to the industry following the arduous licensing system introduced by the Financial Conduct Authority (FCA) for exchanges. Since January, all UK-based crypto-asset companies have had to comply with AML (anti-money laundering) regulations and register with FCA.<\/p>\n

The regulator imposed a ban on crypto derivatives in January, and in June, the FCA warned consumers against 111 crypto firms that had yet to register with it.<\/p>\n

Related:<\/em><\/strong> <\/em><\/strong>UK revenue authority to target cryptocurrency tax evaders<\/em><\/strong><\/p>\n

In April, Cointelegraph reported that HMRC was ramping up its efforts to snare crypto tax evaders and introduced explicit demands on details of digital asset holdings on self-assessment forms.<\/p>\n

Britain\u2019s tax authorities reportedly demanded that several crypto asset exchanges hand over details on customers from transactions and holdings in August 2019. <\/p>\n<\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“# UK digital services tax targets crypto exchanges ” A recent update to Her Majesty\u2019s Revenue and Customs (HMRC) regulations has introduced a digital services tax that will be levied on cryptocurrency exchanges operating in the United Kingdom. Crypto exchanges in the UK will now have to pay a 2% digital services tax according to…<\/p>\n","protected":false},"author":1,"featured_media":373673,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTEvNTEyOTJhMDMtMjVmNS00ZTBmLWI5MDMtOTk4NmNkNGQ0MzhiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[70934,46483,4966],"class_list":["post-373672","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-regulation","tag-taxes","tag-united-kingdom"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/373672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=373672"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/373672\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/373673"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=373672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=373672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=373672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}