The UK’s Revenue & Customs has updated its guidelines for taxing cryptocurrency investors and has ruled that profits from speculation on cryptocurrency values will be treated as capital gains and income for tax purposes.
The ruling means that such profits will not be exempt from some taxes in the way other gambling profits such as poker winnings, are treated in the country.
According to CDCGaming Reports, in calculating the tax due on crypto holdings, individuals may pool certain crypto assets and treat them as one entity. Investors who buy coins simply to speculate upon their value will be liable for capital gains tax on sale of the assets; those who gain them via mining or other means, such as airdrops, will be liable for income tax.
The guidance treats cryptocurrencies more like property than money, dividing them into exchange tokens, security tokens and utility tokens. The HMRC has warned that only specific treatment of exchange tokens, for example Bitcoin, would be handled in the current release, the report said.
In another UK story, the UK Gambling Commission has begun talks with live-stream video platform Twitch after reports surfaced that unlicensed gaming sites were using the platform to stream illegal gambling.
A report by Eurogamer found advertisements for two unlicensed gambling sites on the platform and found games from both are “often streamed in the hugely-popular casino game section”.
“We do not talk about individual cases but I can explain our approach to unlicensed sites,” a commission spokesperson told Eurogamer. “When illegal gambling websites are brought to our attention, we take a number of proportionate steps to protect consumers in Britain.
“This will initially involve assessment of whether the site is actually used by consumers in Britain, and then may include engagement with the site owners, and ultimately working closely with advertising and payment providers to cut off sources of customers and access to funds,” the statement said. “We are currently working with Twitch to prevent unlicensed sites being advertised on their platform.”
