United Kindom’s new tax guidelines acknowledge crypto as neither currency, nor securitie…

Her Majesty’s Revenue and Customs (HMRC), in its new taxation guidelines, stated that cryptocurrencies are neither currencies nor marketable securities. However, the tax authority wants users to keep track of the estimated market value of cryptocurrencies. Earlier, HMRC had contacted various crypto exchanges asking for details of users and how much transactions were being made.

The tax guidelines state that whether the buying and selling of exchange tokens amount to trade depends on a range of factors, which include degree and frequency of activity, and intention (including risk and commerciality). If the cryptocurrencies are held as part of existing trade, profits of a revenue nature will need to be included in the trading profits.

The updated tax guidelines also state that if the mining activity does not amount to a trade, the value (at the time of receipt) of any cryptocurrencies awarded for successful mining will generally be taxable.