UK Imposes 2% Digital Tax on Crypto Exchanges
Main page Finance, Cryptocurrency Exchanges

The UK's HM Revenue and Customs (HMRC) has ordered licensed cryptocurrency exchanges to pay a 2% tax.

As a result, the customers of these platforms could face higher fees, self-regulatory organization CryptoUK has warned, The Telegraph has reported.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

The digital tax, introduced in April 2020, initially applied to social network operators, marketplaces and search engines. The service has explained:

"There are a wide variety of crypto assets, each with different characteristics. Because cryptocurrencies do not represent commodities, financial contracts or money, it is unlikely that crypto asset exchanges can benefit from the exemption for online financial marketplaces."

CryptoUK has called HMRC's actions unfair and noted that the tax will affect traders and investors.

The service director Ian Taylor sees the decision as a blow to the industry after the FCA introduced a complex licensing system. Since January, all crypto-related startups must comply with AML rules and register with the regulator.

Read also:
Please describe the error