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UK Finance Minister Demands New Tax Law for Cryptocurrencies

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UK Finance Minister Demands New Tax Law for Cryptocurrencies

According to reports, British Finance Minister Jeremy Hunt announced his new measures at the annual budget meeting on Wednesday, saying that officials are revising their self-assessment tax returns to require a separate determination of the amount related to encrypted assets. The move is expected to raise an additional £ 10 million ($12 million) in tax revenue annually. At the same time, officials say they will maximize the potential of the metauniverse and manage downside risks in terms of privacy, security, and harm.

UK Treasury: Taxpayers need to separately declare encrypted assets from next year

Analysis based on this information:


In the latest annual budget meeting on Wednesday, Jeremy Hunt, the British Finance Minister, announced new measures for self-assessment tax returns, particularly for those related to cryptocurrencies. These new measures require a separate listing of encrypted assets in their self-assessment tax returns. This step is expected to raise £10 million ($12 million) per year in tax revenue.

Cryptocurrencies, including Bitcoin, have been subject to scrutiny in recent years regarding their tax implications. It was previously perceived that these digital assets were relatively easy to hide since they operate across an untraceable and decentralized network. However, the government’s decision to revisit the self-assessment tax returns will bring transparency with cryptocurrency trading.

The introduction of this new tax law is a signal of the government’s efforts to regulate the cryptocurrency market, thereby reducing the risks of unwarranted virtual currencies. The announcement provides an estimate of the number of taxpayers declaring their cryptocurrencies and the value attributed to them, giving better clarity for authorities.

In addition to the cryptocurrency tax law revision, officials also announced a plan to maximize the potential of the metaverse. The metaverse, originally coined by the science-fiction novel Snow Crash, describes the convergence of virtual and physical worlds, comprising various online communities, social media platforms, video games, and virtual reality experiences. In terms of the metaverse, the government seeks to manage potential risks related to privacy, security, and the harmful impact on society.

In conclusion, the UK’s Finance Minister has made significant changes to tax laws for cryptocurrencies in the annual budget meeting to reassure and manage the growth of the decentralized world. The measure aims to increase revenue by narrowcasting the focus towards those trading cryptocurrencies, highlighting additional revenue sources for the government. Regardless, it is clear that the government is acknowledging the rise of virtual currencies and is attempting to manage them with a more targeted and regulated approach in the future.

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