UK Tightens Crypto Policies, Holders Should Beware Of Penalties For Unpaid Taxes

The U.K. Government announced that crypto users must disclose any unpaid capital gains or income taxes to avoid penalties.

What Happened: HM Revenue and Customs disclosed guidance on how to pay taxes on Bitcoin (BTC), non-fungible tokens (NFTs), and utility tokens.

Crypto tax disclosures to the U.K. Treasury have a time frame of 30 days from the disclosure date for completing all the necessary payments.

Also Read: New UK Regulations Fall On Deaf Ears As 221 Crypto Firms Are Labeled Non-Compliant

Why It Matters: The official post also states that if the payment deadline is not met, the Treasury will adopt certain steps to recover the money, and users may face penalties. 

The Treasury has been promoting the crypto tax since 2021 when it published a manual to help U.K. crypto holders pay taxes. In March 2023, the government announced that people will have to declare crypto separately in tax forms.

Separately, the U.K.'s Technology Working Group recently reflected how the country is open to implementing tokenization of funds, CoinDesk reported.

Firms are advised to ensure their funds are authorized by U.K. regulators and that they hold traditional assets and should be interoperable with future technology.

Read Next: Bim Afolami Takes Charge - New Era Of Crypto Policies In UK Treasury

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