Cryptocurrencies are not considered legal tender in several locations worldwide, which creates gray areas and legal loopholes that have been taken advantage of for profitable gain. Third-party institutions hope new digital asset guidelines will prevent illegal crypto trading and activities. Digital currencies allow individuals to purchase goods and services that are illegal in their area. Crypto assets have blurred regional boundaries and erased previous limitations. For example, cryptocurrencies allow people to gamble in online casinos in restricted areas. Regulators aim to minimize digital crimes by centralizing the crypto platform.
It isn’t clear whether revised taxation guidelines will benefit crypto traders, but HM Revenue and Customs will provide updates to the United Kingdom’s residents by March 30th. The updated policies will go into effect immediately after being made available to the public. Tax consequences in the United Kingdom will vary significantly through the different crypto-asset transactions, but the tax infrastructure will remain flexible to adjust to the constantly evolving market.