UK Draws Flak Over Proposal to Seize BTC From Exchanges

UK’s tax office may introduce rules to seize crypto from businesses that don’t pay taxes.
The rule may get implemented faster on wallets managed by crypto exchanges.
Many expressed their dissent given the possibility of an overreach by the UK.

HM Revenue & Customs (HMRC), the UK’s tax authority, is mulling over the introduction of rules that would empower it to seize cryptocurrency, including Bitcoin (BTC), from businesses that don’t pay their taxes.

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According to an article by The Telegraph, this can be imposed on crypto exchanges relatively easier than individual non-custodial wallets.

Naturally, the idea did not sit well with crypto fans, especially those who will be directly affected by the rules. Some, including well-known Bitcoin personalities like Max Keiser, used strong language to express their dissent.

Earlier this year, the European Union (EU) formalized a more well-defined regulation — Markets in Cryptoassets (MiCA) — for cryptocurrencies. However, since the UK has already forfeited its EU membership, MiCA will not apply to British crypto customers. So, the UK will have a separate policy regarding crypto which may not be as appealing as the EU’s.

Meanwhile, Coinbase CEO Brian Armstrong visited both the UK and the UAE for the possibility of moving the exchange’s headquarters from the US, as some alleged. But given the possible overreach of the UK on crypto exchanges, it would be unlikely that Coinbase would set up its main office in the UK.

As to the UAE, CNL reported that the Middle Eastern country is now mobilizing its plan to proactively support bitcoin mining.

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Jesus Dawal

Jesus Dawal Jr covers news related to the crypto space in Asia and in Australia, although he follows the latest events in the US and Europe as well. He is most interested in the blockchain gaming and regulation aspects of the industry.