Major crypto exchanges are going to be slapped with a digital services tax — and they'll have to stump up 2% of their annual revenues.
Major crypto exchanges are going to be slapped with a digital services tax in the U.K.
"There are a wide variety of crypto assets, each with different characteristics."
Smaller trading platforms will be able to avoid this levy, but it's highly likely that bigger firms such as Coinbase will be affected. There are now fears these costs could end up being passed on to consumers — following in the footsteps of Amazon, Google and Apple.
Crypto Groups Criticize the Move
Ian Taylor of CryptoUK has described HMRC's updated policy as "regressive" — and that it'll be everyday investors who are left out of pocket.
He went on to describe the licensing regime that was introduced by the Financial Conduct Authority as "arduous."
All of this could contribute to the U.K. being regarded as an unfriendly place for crypto companies to do business — prompting them to base their operations elsewhere.
Enthusiasts argue that an innovative approach to digital assets could boost the British economy, but companies currently face a lack of clarity.
"I personally think the momentum is now unstoppable. We need to move quickly and effectively to secure London's position."