According to sources, the United Kingdom is taking a significant step in regulating the crypto market. His Majesty’s Treasury has announced that it will introduce a separate category for crypto assets in tax return forms, marking a significant development in the nation’s comprehensive crypto framework. The changes to self-assessment forms for crypto assets will be implemented by 2024-25 and will require British citizens to declare crypto assets for the first time in the previous tax year.
The Treasury hasn’t provided specific numbers for anticipated budget revenues from this tax category. However, it has been welcomed by the Chartered Institute of Taxation (CIOT), who praised the move for raising awareness of people’s obligations in the crypto market. Gary Ashford, the CIOT deputy president, emphasized the need for further actions to address the prevalent lack of understanding regarding crypto tax payment and reporting obligations.
As the Financial Services and Markets Bill progresses through parliament, the Financial Conduct Authority (FCA) is currently in the midst of a “fairly ambitious reset”, coinciding with the modifications in tax reporting prerequisites.
Once passed, the bill would give the FCA new regulatory powers over the cryptocurrency industry. By introducing a distinct classification for crypto assets on tax return documents, the UK has achieved a noteworthy accomplishment in its endeavors to oversee the crypto industry. It also comes at a time when other countries are grappling with how to address the growing influence of cryptocurrencies. The move is expected to help raise awareness of crypto taxation obligations. The Treasury’s decision to amend the self-assessment forms for crypto assets clearly indicates that the UK government is taking steps to regulate the crypto industry effectively.