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 .
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. That could leave tax collector HMRC, which is accused of being outdated about bitcoin, missing out on revenue from the cryptocurrency boom.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 Macron on how to regulate cryptocurrencies to prevent them sparking financial instability.