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UK Extends Crypto Tax Break for Investment Managers in Financial Reforms
Rishi Sunak’s government has already legislated to use stablecoins as a means of payment as he seeks to make the country a crypto hub.
The U.K. has confirmed it will extend tax breaks for investment managers to cover crypto assets, a step in Prime Minister Rishi Sunak's plan make the country a crypto hub.
In October, minister Andrew Griffith said he wanted to “tentatively seize" crypto opportunities, and promised a consultation on how to use new legislative crypto powers contained in the Financial Services and Markets Bill before the Christmas holiday.
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In a package of financial services reforms unveiled Friday, setting out how to replace European Union banking and financial-market laws, the Treasury said it would extend an existing tax break, which allows investors to use a U.K.-based manager without drawing extra tax liability, to the crypto sector. The change will be made via regulations this year.
The Treasury also said it will implement a "sandbox" to test out innovative financial market infrastructures next year, and will consult on a digital pound in the coming weeks.
In April, Rishi Sunak, then finance minister and now prime minister, said he wanted to make the U.K. a global crypto hub. While U.K. regulator the Financial Conduct Authority has already tentatively set out how it would use new crypto powers, some in the industry have warned that new advertising restrictions could prove unduly complex.
A Treasury spokesperson did not respond to a CoinDesk request for comment on the status of the wider consultation on crypto regulations.
Read more: Proposed UK Rules Will Make Advertising Crypto a Lot Harder, Industry Warns
Jack Schickler
Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He previously wrote about financial regulation for news site MLex, before which he was a speechwriter and policy analyst at the European Commission and the U.K. Treasury. He doesn’t own any crypto.
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Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
What to know:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
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