UK’s Her Majesty’s Revenue and Customs Regulator has put forward a 2% digital services tax targeting cryptocurrency exchanges based in the UK.
The tax agent says that digital assets are not categorized as financial instruments and that the exchanges cannot benefit from tax exemption for online financial marketplaces.
CryptoUK, a self-regulatory trade association in Britain, says that the move is unfair to the industry and that the levy could pass to the investors.
The tax agent listed crypto exchanges under the Treasury’s tech tax on November 28, making them eligible for the tax on revenue.
CryptoUK’s executive director Ian Taylor terms the treatment of crypto differently from other financial instruments as detrimental to the sector.
The UK regulator banned crypto derivatives in January and compelled exchanges to register with the Financial Conduct Authority. FCA warned the public in June against over 100 crypto firms that had not registered.
Source: The Coinslate