UK Extends Crypto tax break in New Financial Reforms

The UK has confirmed that it will extend the tax break for investment managers in order to cover crypto assets. This is after the New Prime Minister said he planned to make the UK a “Crypto Hub.”

Minister Andrew Griffith said in October that he wanted to seize crypto opportunities tentatively. He promised to conduct a consultation on how to use new crypto powers and regulations in the new Financial Services and Markets Bill before the Christmas holiday.

In the Collage of Financial Service Reforms revealed on Dec 9, intending to replace European Union banking and financial-market laws, The UK treasury said it would extend an already existing tax break, which allows investors the use of UK Based investment and asset managers without attracting additional tax liability to the crypto sector. The changes would be made this year via regulations.

The UK Treasury has also said it would implement a “sandbox” to help them test out innovations in the financial market infrastructure next year. It also disclosed that it would begin consultations concerning a digital pound next year. 

In April, Rishi Sunak, then finance minister and the current prime minister, said he wanted to make the UK a global crypto hub. 

While the U.K. regulator, the Financial Conduct Authority, has already tentatively laid out how it would use new crypto powers and regulations, some in the industry view the new advertising restrictions as unduly complex.

Read Also;

• UK Finalises Plans to Regulate Crypto following FTX saga