Bitcoin Legality News in UK

Bitcoin Legality is still a contentious matter among UK legislators and tax authorities. Last September 2013, UK policymakers stated that Bitcoin-based businesses would not have to register with law regulators while they are still considering their regulatory stand about this digital currency. Given this, UK-based Bitcoin industry is allowed to operate in the state at the time being.

Furthermore, in the most recent message from them, it is proposed that Bitcoin must not be considered a currency, but a single-purpose voucher that must carry a value-added tax, wherein 20% VAT is imposed on Bitcoin exchanges. However, based on most Bitcoin Legality News in UK, traders are complaining since this makes their businesses globally uncompetitive; hence, they are considering to transfer to other jurisdictions that are more favorable with Bitcoin. As a response to this, Her Majesty’s Revenue and Customs (HMRC) affirmed that they are looking for alternatives to solve this matter. In fact, the Revenue stated an option which was to reconsider Bitcoin as private money, just like what Germany has done, to limit the VAT.

On the other hand, National Crime Agency (NCA) claimed in a Bitcoin Legality News in UK that part of their ongoing work to combat cyber world’s threats is to lead a multi-agency team that will investigate and fight the scale of the risk to the UK from digital currencies. They agreed that even though BTCs are not considered fiat currency like GBP or USD, it is still a mean of payment and has value. Hence, stealing them will be considered theft and not a mere computer attack.

Bitcoin’s status in the UK remains cloudy. However, what is clear at this moment is that BTC in this state is defined as an ‘issuing payment instruments’ that count as money’s worth and it will remain in this standing ‘if and when they become widely used’ based on Financial Conduct Authority (FSA). On the other hand, all are still early in the game so hopefully, since the UK lawmakers are scrambling out to work out what these virtual coins are, there will be certain regulations on BTC to be implemented sooner rather than later, and a Bitcoin casino regulation may be one of them. After all, Bitcoin has a lot of potential in Bitcoin gambling, and people are curious with questions like, “Is Bitcoin casino legal in UK?” This may be more established sooner rather than later.