The UK Treasury could be deprived of millions of pounds due to a loophole that allows bitcoin investors to declare their returns as tax-exempt gambling winnings. Bitcoin-related tax breaks have been around for years, but the latest move by the British government is likely to raise eyebrows among those who believe cryptocurrencies should not be treated like ordinary assets. The rules are expected to confuse amateur investors as they leave it unclear who should be characterised as a gambler and who should fall into the taxable bracket of investor, barrister Etienne Wong claimed. Regulation is expected soon, following discussions between German Chancellor Angela Merkel and French President Emmanuel Macron on how to regulate cryptocurrencies to prevent them sparking financial instability.
The UK Treasury could be deprived of millions of pounds due to a loophole that allows bitcoin investors to declare their returns as tax-exempt gambling winnings. Bitcoin-related tax breaks have been around for years, but the latest move by the British government is likely to raise eyebrows among those who believe cryptocurrencies should not be treated like ordinary assets. Regulation is expected soon, following discussions between German Chancellor Angela Merkel and French President Emmanuel Macron on how to regulate cryptocurrencies to prevent them sparking financial instability.