Will the UK reduce the tax rate on crypto?

  • Ultramining.com
  • 16:48 Sep 23, 2022
Will the UK reduce the tax rate on crypto?

Apparently, yes, if we take seriously the speech of Matt Hancock, who is a British MP. The idea was announced on September 22 this year during London WEB3 week, which was held in the context of the global event Zebu Live.

Matt Hancock hopes that tax cuts will allow the development of cryptocurrency, to achieve innovative solutions in mining.

But who is this man and why is this news important for the UK and the global virtual asset market as a whole? The parliamentarian served as Secretary of State for Digital, Sport, Music and Culture. His speech speaks to the UK government's willingness to make concessions to those who mine crypto.

It is encouraging to know that UK politicians are aware of the important contribution of crypto to the UK economy. It is to be hoped that the example of Matt Hancock will inspire parliamentarians in other states as well.

«HM Revenue & Customs (HMRC) is betting on raising returns, but ... using a sledgehammer (a metaphor pointing to the high fees to the state that people who mine are forced to pay, - note). We have to choose a different point of view, which will make the income in the future much higher», – said the parliamentarian.

The point, of course, is that lowering taxes on virtual coin mining will attract more people to mining. Which will ultimately increase the currency turnover in the country. And will increase the popularity of getting crypto-assets. The speaker talked about the fact that it's better to aim for the long term. Then to cash in on the moment and risk the UK cryptocommunity gradually shrinking.

What's causing so much attention to this issue

The Office of Revenue and Customs in the UK was the main leitmotif of Matt Hancock's answers to Zebu Live forum guests' questions. It should be noted that in this country cryptocurrency is also equated to other assets. That means it is also subject to a capital gains tax. The tax is 20%. Moreover, this applies to many actions aimed at crypto. The fee must be paid even if one virtual coin is exchanged for another.

What to expect from Matt Hancock's speech

Despite the displeasure of skeptics, the parliamentarian himself sees the crypto market in Britain as an effective tool necessary for the country's effective economic development.

Hancock has repeatedly remarked that: «the existing structure should include positive mechanisms adapted to risks and positive trends».

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