In the UK, a 2% digital tax will be applied to Bitcoin exchanges

Dec 2021
The Ministry of Taxes and Customs of the United Kingdom (HMRC) has obliged licensed cryptocurrency exchanges to pay a tax on digital services at a rate of 2%. Clients of the platforms may face increased fees, the self-regulatory organization CryptoUK has warned, writes The Telegraph.

The digital tax, introduced in April 2020, was initially applied to operators of social networks, trading platforms and search engines.

"There is a wide variety of crypto assets. They do not represent goods, financial contracts or money. For this reason, bitcoin exchanges are unlikely to be able to take advantage of the tax exemption provided for online financial markets," the service explained.

CryptoUK called HMRC's actions unfair and pointed out the risks of shifting costs to traders and investors.

Chief Executive Ian Taylor regarded the decision as a heavy blow to the industry after the FCA introduced a complex licensing system. Since January, all crypto startups are required to