- 1 January 2023
- Posted by: Cryptovalues
- Category: World News
It was only last July when the then Chancellor of the Exchequer (counterpart of our Minister of Economy and Finance) Rishi Sunak announced maximum efforts to make the UK a “crypto hub” within the framework of sound realism and in building infrastructure to prepare to supervise cryptocurrency issuers and traders in a way that adequately protects investors.
As he became prime minister, openings toward stablecoins and NFTs on the one hand and CBDCs on the other are recalled.
It was precisely on stablecoins that Rishi Sunak’s attitude had proven to be one of full openness so much so that it seemed that work was being done on the possibility of creating a regulatory framework that would recognize such coins linked to fiat currencies.
In October, the Treasury said it would extend an existing tax break to the cryptocurrency sector, which allows investors to use a UK-based manager without incurring additional tax liabilities, and it begins 2023 with the news that The UK will apply cryptocurrency tax breaks for foreigners using local brokers.
In fact, effective Jan. 1 of the new year, the U.K. will apply a tax exemption for foreign investors who purchase cryptocurrencies through local managers or brokers, which is part of Prime Minister Rishi Sunak’s plans to turn the U.K. into a cryptocurrency hub.
“This exemption is an important factor in attracting global investors, which means foreign investors will not be subject to UK tax simply by using UK-based investment managers,” said the government’s tax department, HM Revenue and Customs.
The country already has tax guidance for resident crypto traders. In July, HM Revenue and Customs published a consultation to gather the views of investors and professionals on how to tax decentralized finance (DeFi).
Appreciable, then, are the efforts of the new British prime minister to move forward in his ideas, and the shortened timeline in which he is following up shows how much belief there is in the project as a pick aimed at opening the locked doors of the future.