- UK Taxation is looking to keep up with the times.
- HMRC can indeed confiscate funds from bank accounts.
- FinTechs and crypto are next in line for HMRC’s launch.
United kingdom positioning itself as a crypto hub with a framework of regulations coming in the near future. HM Revenue and Customs (HMRC), the UK’s tax authority, is also looking to take control of the digital asset space as part of these regulations.
HMRC is suggestion Regulations that would give it the power to take cryptocurrency from the wallets of those who don’t pay their taxes.
Access to wallets and exchanges
HMRC already has the ability to seize money from the bank accounts of those who don’t pay their taxes. This new proposal will provide a similar power to modernize the digital age, with PayPal Being another medium over which she wants to exercise her power.
A spokesperson for HMRC told telegraph:
“The proposals will help ensure HMRC’s debt collection keeps pace with business practices. E-commerce means new business practices with fewer physical and owned assets held in the UK, which makes it harder for HMRC to collect unpaid taxes using existing powers."
In an advisory paper, HMRC considers a way to ensure that encryption does not become a means dodgy tax. However, the authority is aware that it will be difficult to access decentralized wallets, but the wallets held on exchanges will be within its jurisdiction.
Law enforcement can already seize cryptocurrencies from major exchanges and hold them as evidence; The funds will be seized by HMRC similarly.
Made for mainstream
As part of the consultation paper, HMRC is planning ahead and looking at the possibility of cryptocurrency becoming more mainstream.
“If more regulation was put in place around cryptocurrencies, that might be the case Cryptocurrency wallets It may become a more popular method of payment for goods and services,” the HMRC advisory document states.
on the flip side
- In the United States, President Joe Biden’s regime seeks to cut “Tax loopholes that help wealthy cryptocurrency investors,” read a tweet from POTUS account.
Why should you bother
Tax regulation Cryptocurrency is an important step in adopting these mainstream digital assets. But, just as with general cryptocurrency regulation, there are many different ways to approach it.
Read more about Biden’s cryptocurrency tax plans:
Read more about Binance and its bid to be headquartered in the UK: