UK Crypto Tax Rules Push Investors to Leave the Country
The post UK Crypto Tax Rules Push Investors to Leave the Country appeared on BitcoinEthereumNews.com.
The UK’s approach to taxing digital assets is increasingly causing friction among crypto users. The main issues stem from how the tax authority, HMRC, classifies crypto and imposes what many see as burdensome requirements for logging transactions and disclosing personal data. In a BeInCrypto podcast, Susie Violet Ward, CEO of Bitcoin Policy UK, warned that the country’s current tax and regulatory policies seriously threaten the crypto industry. As she sees it, without urgent reforms, these rules risk permanently reversing the industry’s growth in the UK. A Cryptocurrency Conundrum In the United Kingdom, cryptocurrency users express serious concerns about the regulatory environment, citing issues like over-regulation, de-banking, and a general lack of clarity. At the heart of these problems is how the nation’s tax authorities view and treat digital assets, which many argue hinders the industry’s growth. The challenges facing UK crypto users are numerous, ranging from the improper categorization of digital assets and strict caps on capital gains allowance to significant privacy concerns. The Bitcoin vs. “Crypto” Divide For many advocates, the most fundamental flaw in the UK’s approach is the lack of a clear distinction between Bitcoin and thousands of other crypto assets. While the Financial Conduct Authority (FCA) has a token taxonomy, it broadly classifies Bitcoin as an “exchange token,” applying a blanket regulatory lens to all cryptocurrencies. Ward argued that this one-size-fits-all approach is misguided because Bitcoin and other crypto projects fundamentally differ. “One’s a completely decentralized protocol that takes up a 60% market cap of the overall crypto industry, and the others are technologies or VC companies. They’re not even remotely the same thing. However, they’re all given the same risk profile under the FCA, and you can’t operate like that, it causes confusion,” she explained. That fundamental disconnect in classification has a very real-world impact…
Filed under: News - @ September 1, 2025 8:29 pm