British HMRC Does Not Recognize Cryptos as Real Money

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This includes things such as utility tokens, security tokens, exchange tokens and other varieties of cryptos. Not recognizing something as real money and then placing taxes is quite bizarre, but it’s the route the HMRC decided to take. Her Majesty’s Revenue and Customs agency has concluded in a new ruling that cryptocurrencies are not to be recognized as real money, but tax laws will still apply to their multiple variations. The creators understand this as if it had increasing value it would immediately be classified under security tokens, thus taxed accordingly. The tokens being used on these platforms have no real monetary gain, as they’re usually classified as stable coins.

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Her Majesty’s Revenue and Customs agency has concluded in a new ruling that cryptocurrencies are not to be recognized as real money, but tax laws will still apply to their multiple variations. According to the new ruling that the HMRC released, every single cryptocurrency that is used as a means of exchange needs to be identified as taxable. This includes things such as utility tokens, security tokens, exchange tokens and other varieties of cryptos.

In the past, the HMRC was taxing only cryptos that were being used as securities, meaning coins that were used to achieve monetary gain on the market. This was simplified due to the local regulation of having crypto exchanges supply the HMRC with customer trading data.

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