Bitcoin exchanges have been dragged into the Treasury’s tech tax after HMRC said they would not qualify for an exemption granted to financial services companies.
The tax office has informed online cryptocurrency exchanges that they are subject to the levy, which is designed to ensure tech firms such as Google, Facebook and Amazon pay more to the Exchequer.
HMRC said crypto assets “are not financial instruments” and do not qualify as commodities or money, meaning online exchanges that sell cryptocurrencies such as Bitcoin and ethereum are not able to claim an exemption for financial marketplaces.
Crypto’s not money nor a commodity. Doesn’t that rather drive a coach and horses through the demands for know your customer rules and all that?
Or have we reached the sort of dystopia where the bureaucrats are allowed to use different definitions when they feel like it?