UK to Ramp Up Crypto Oversight: Tax Forms to Include Separate Reporting for Crypto Assets – More Regulation Incoming?
The UK will ramp up oversight of the crypto sector with tax forms sent out to individuals now set to include a separate reporting option for crypto assets.
The change to the tax form will take effect from the tax year that ends in April 2025, and applies to forms for capital gains tax.
These are taxes investors pay when assets, including crypto assets, are sold for a profit.
“The government is introducing changes to the Self Assessment tax return forms requiring amounts in respect of cryptoassets to be identified separately,” the UK Treasury said in a document published on Wednesday.
The new reporting option was announced by Chancellor of the Exchequer Jeremy Hunt as part of the annual budget unveiled on Wednesday.
So far, no other regulations or limitations concerning crypto have been unveiled as part of the budget.
“Maximize the potential” of the metaverse
Meanwhile, and perhaps on a more positive note, the government said it wants to “maximize the potential” of the so-called metaverse, a term used to describe virtual worlds that may or may not depend on crypto and blockchain technology.
The government also said the metaverse push must be done in a way that protects against risks to privacy, security and other forms of harm to consumers.
A global hub for crypto
The UK has tried to position itself to become a more dominant player in the crypto economy, with the government in 2022 announcing plans for the country to become a global crypto hub.
As part of the initiative was a plan unveiled by then-Chancellor of the Exchequer Rishi Sunak to allow stablecoins to be used in the UK payment system.
“The measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country,” Sunak was quoted as saying at the time.