3rd March 2013 (London, UK) – The UK Digital Currency Association (UKDCA) welcomes the forthcoming HMRC briefing on the tax treatment of cryptocurrencies as a very positive step towards their mainstream adoption.
The briefing provides clear rules on the tax liabilities for individuals and businesses handling Bitcoin and other cryptocurrencies. The published guidelines are some of the most sophisticated and forward-thinking issued by tax authorities anywhere in the world. The briefing suggests that cryptocurrencies should be treated almost identically to other currencies, in terms of taxation. This gives further legitimacy to digital currencies and could lead to a gold rush of digital currency businesses to the UK, further cementing its status as the world’s capital for innovation in financial technologies.
The news comes after months of meetings between UKDCA representatives and both the Treasury and HMRC. The UKDCA provided technical information on how digital currencies work, as well as how they are used by individuals and businesses in the UK.
Tom Robinson, director of the UKDCA and co-founder of Elliptic, a UK-based digital currency services company, said: “This briefing gives much-needed clarity to digital currency businesses, many of whom had been looking to move offshore. The UKDCA looks forward to working with financial regulators to further clarify the legal status of digital currencies and ensure that the UK takes the lead in developing this highly innovative technology”.