The Cryptocurrencies market has been developing continuously for many years. There are no signs that the trend will change in the nearest future. Although the Bitcoin boom is over, the last increase in the value of the most popular cryptocurrencies has brought the stock exchanges back to life. Many new people became interested in the subject of crypto, and many questions from new users appeared on industry forums.
A lot of stock exchanges, introduced the possibility of making deposits in British pounds. Such a solution is certainly a great convenience for people living in the UK. What is more – Great Britain is a country where the cryptocurrencies trade is approached very liberally. Mining and trading in virtual currencies is certainly not seen as a crime. Is cryptocurrencies trading legal in Great Britain? Find out more from our guide today!
Cryptocurrencies – what is it?
Cryptovalutes are conventional units of digital currency, the ownership of which is determined on the basis of virtual wallets of users. The system of connections between individual wallets (blockchain) and appropriate encryption prevents the double release of the same crypto unit. Only and exclusively the owner of a private key to a given wallet has the possibility to dispose of its contents. In most countries, cryptocurrencies are not currently considered same as other currencies like USD, GBP etc.
In addition, Facebook announced the introduction of its own currency Libra, which may soon gain a lot of popularity. The value of a given cryptocurrency is usually determined by the free market. The most popular place for trading in virtual currencies is the cryptocurrencies exchange.
Cryptocurrencies, and the law in Great Britain
The cryptocurrencies market in the UK is currently not fully regulated. However, the way the tax authorities interpret the law is one of the most liberal in the world. In December 2018, the British tax office (HMRC) issued a statement (Cryptoassets for individuals) on how to tax income from trading in bitcoins and other cryptocurrencies. In turn, the UK Financial Conduct Authority published in early 2019 a comprehensive document (Guidance on Cryptoassets) to support consultations on the cryptoassets market in the UK.
FCA in its publication includes Bitcoin and similar cryptocurrencies in the group “Exchange tokens”. The exchangeable tokens are described as decentralised and not supported by any government authority. The document also mentions that tokens can be used as a means of payment without the intermediation of banks and other financial institutions. Consultations on the regulation of the cryptocurrencies market in the UK are still ongoing. Nevertheless, the crypto trade in the United Kingdom in no way violates the current law.