The UK economy could be deprived of millions of pounds due to a loophole that allows bitcoin investors to declare their returns as tax - exempt lottery winnings . That could leave tax regulator HMRC , which is accused of being concerned about bitcoin , missing out on revenue from the cryptocurrency boom . An HMRC spokesman said: “We don’t normally tax betting and gambling because it is usually not classed as trading income. Regulation is expected soon , following discussions between German Chancellor Angela Merkel and French President Emmanuel ##le on how to regulate cryptocurrencies to prevent them sparking financial instability .
The UK economy could be deprived of millions of pounds due to a loophole that allows bitcoin investors to declare their returns as tax - exempt lottery winnings . That could leave tax regulator HMRC , which is accused of being concerned about bitcoin , missing out on revenue from the cryptocurrency boom . Regulation is expected soon , following discussions between German Chancellor Angela Merkel and French President Emmanuel ##le on how to regulate cryptocurrencies to prevent them sparking financial instability .