The British Tax Customs (HMRC) does not recognize the encrypted currency is “financial instrument”, so these exchanges are not eligible to give exemptions to the financial market.
Previously, local income tax on large-scale technology companies was started in April 2020, which was mainly targeted in Facebook and Google.
Based on representing the trade institutions of the UK digital asset industry, this tax is unfair, and it is likely to pass to investors and traders to further kill the industry.
In fact, due to the 2021 encryption currency trading boom, the Coinbase Exchange is expected to easily obtain more than 25 million pounds ($ 33 million) income thresholds.However, HMRC insists that encryption monetary assets cannot be classified as commodities or currencies.
In addition, in October this year, the European government has reached an agreement with the United States to establish a new global tax system to avoid researulous tariffs in the United States.