Cryptos Are Neither Currency nor Money, Says UK's Tax Authority

The United Kingdoms tax authority, Her Majestys Revenue and Customs (HMRC) has detailed it doesnt see cryptocurrencies like bitcoin as money or as currency.

According to its updated cryptocurrency taxation guidelines for individuals and businesses, cryptocurrencies are also generally not considered stock or marketable securities. The updated guidelines read:

It is important to note that HMRC does not consider any of the current types of cryptoassets to be money or currency. This means that any Corporation Tax legislation which relates solely to money or currency does not apply to exchange tokens or other types of cryptoasset.

The guidelines detail that even though HMRC doesnt look at cryptocurrencies as if they were currency or money, this means theyre largely exempted from stamp taxes, although these apply in certain cases.

Moreover, the UKs tax authority detailed cryptocurrency exchange tokens, like Binances BNB or OKExs OKB, can be seen as stock or marketable securities or chargeable securities, which would make them fall within the scope of Stamp Duty or Stamp Duty Reserve Tax.

The document details, nevertheless, whether they are considered stock, marketable securities or chargeable securities, is to be determined on a case-by-case basis dependent on the characteristics and nature of the cryptoasset.

Per these updated guidelines businesses will be required to keep records of their cryptocurrency transactions – even if crypto-to-crypto – in pounds sterling, as well as records of the valuation methodology determining their valued in GBP.

HMRCs cryptocurrency taxation guidelines were initially published in December of last year, to clarify various taxation issues for both individuals and businesses. The 2018 guidelines also asked individuals to keep records of their crypto transactions in GBP.

Featured image by Simon Migaj on Unsplash.

EOS , Blockchain , DeFi Bitcoin , Regulation Altcoins , Exchanges

Read full story on CryptoGlobe

Tags: Tax, Currency, HM Revenue and Customs, Money, Cryptocurrency, Guideline, United Kingdom, Authority, Majesty, Stamp duty in the United Kingdom