Brexit Effect on UK Bitcoin Taxation – Exchanges

While traditional markets are reeling from Brexit, how much of an influence will it have on the Bitcoin industry, such spil UK Bitcoin exchanges, who may face fresh regulatory guidelines when dealing with EU customers? Moreover, how will this historic vote affect taxation of virtual currency?

Wiggling Up the Bitcoin Landscape

Now that the United Kingdom will no longer be a part of the EU, there will undoubtedly be some significant switches. Especially te the field of legislation and regulation, things may look very different ter a year from now. Bitcoin exchanges te the region will be among the very first to feel the effect of any emerging switches.

Coincorner is one of the only Bitcoin exchanges te the United Kingdom permitting customers to buy cryptocurrency with their credit or debit card. The company also welcomes European users, but now that the UK separated itself from the EU, it remains to be seen how thesis transfers will be treated.

CoinCorner Co-founder Charlie Woolnough told Bitcoin.com that:

The same can be said for Coinfloor , Bitbargain , and Bittylicious , all of which are active ter the United Kingdom. However thesis platforms are mostly focused on the UK region, they may nonetheless face fresh regulatory requirements spil well. The situation remains very uncertain for the time being, spil the total effects of the Brexit have yet to become apparent to the world.

The influence #Brexit is having on Bitcoin.

On the flipside, all of thesis exchanges may see an influx from users looking to obtain Bitcoin ter the coming days and weeks. Spil the Pound Sterling proceeds to lose value compared to other world currencies, consumers may embark to look for safe toevluchthaven alternatives. Bitcoin is an investment voertuig for some, and the value is holding strong te both BTC and GBP markets. Ter fact, the Brexit may spark renewed rente ter cryptocurrency spil a entire.

Taxation of Bitcoin ter the UK

For spil long spil the UK wasgoed part of the EU, taxation of Bitcoin would fall under the same guidelines spil the surplus of Europe. Ter 2015, the European Union determined not to tax Bitcoin, and that situation remains unchanged to date. But things are a bit different te the UK, spil there is a decree that would see Bitcoin transactions taxed by spil much spil 20%.

The Library of Congress webstek states:

While bitcoins are not regulated, it has bot reported that Hier Majesty’s Revenue and Customs has classed bitcoins spil ‘single purpose vouchers,’ rendering any sales of them liable to a value-added tax of 10–20%. This has bot strongly criticized by those selling bitcoins spil being a showcase stopper for the UK Bitcoin industry. There is no specific reference on Hier Majesty’s Revenue and Customs webpagina to bitcoins.

Whether or not the UK government will determine to enforce this rule ter the future, is anybody’s guess right now. There is slagroom for them to tax Bitcoin if they want to do so, however, which is rather disconcerting. Arousing times are ahead for the UK spil a entire, and it remains to be seen which role Bitcoin will play te the coming months.

How will the Brexit affect UK Bitcoin exchanges and taxation rules for cryptocurrency? Let us know ter the comments below!

Pictures courtesy of Twitter, Politics UK

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