Bitcoin Law Enforcement

In the limelight – this is the recent status of Bitcoin Law Enforcement with policymakers in the UK. Given the fact that Bitcoin is anonymous, exchanged almost instantly, and offered low transaction fees, it became a more efficient payment method than bank, credit cards, and wire transfers. However, on the other side of these boons are the banes since it can also be capitalized for numerous illegal activities particularly tax evasion and money laundering. Is Bitcoin a scam? This is why the UK government is doing some significant steps for their regulatory position regarding this digital currency. There is no doubt that soon the Bitcoin casino regulation for UK will be more certain, especially with the introduction of all sorts of Bitcoin casino scam.

Last September 2013, meeting with the UK legislators proposed that Bitcoin-based industries would not have to register with regulators, at least ‘for the time being’. This will be the setting while they are still on the process of establishing their official stand about Bitcoin’s legitimacy. Furthermore, a message from the UK suggested that BTCs won’t be treated as a currency; instead it will be classified as ‘single-purpose vouchers’. These could carry a value-added tax liability on any sold Bitcoins.

The current value added tax on purchases of the coin is 20 percent. However, traders are complaining that the ‘VAT’ made their businesses globally uncompetitive and are asking HM Revenue and Customs to look at more favorable jurisdictions. This gives way to another option suggested by the Revenue, which is to reclassify Bitcoins as private money, similar to what Germany did.

At the time being, HMRC had not reached a decision on the final tax treatment, but they affirmed that they are listening to the industry, “We have held constructive meetings with stakeholders, but this is a complex issue, and we will continue to listen to arguments for alternative VAT treatments under existing VAT law.”

On the other hand, there are also other ways of viewing Bitcoins and parallels have been drawn with barter, unofficial local currencies, property, and gold. In connection, a head of tax in an advisory group is hopeful that the debate will move towards Bitcoins having the same status as gold that has been exempted from VAT since 2000.

In conclusion, Bitcoin Law Enforcement in the UK is still on process and uncertain. This held back the nascent digital currency economy from developing in addition to difficulty in obtaining bank accounts.