The Treasury Select Committee has launched an inquiry into the Crypto-Asset industry which will explore the role, opportunities and risks that crypto-assets offer consumers and businesses.

The Committee is making a call for evidence in respect of the future adoption of cryptocurrencies and crypto-based technologies as well as the impact and scope of current and potential regulation.

It invites written submissions to address the following questions:

  • To what extent are crypto-assets when used as digital currencies (such as Stablecoin) likely to replace traditional currencies?
  • What opportunities and risks would the introduction of a Bank of England Digital Currency bring?
  • What impact could the use of crypto-assets have on social inclusion?
  • Are the Government and regulators suitably equipped to grasp the opportunities presented by crypto-assets, whilst at the same time mitigating against the risks?
  • What opportunities and risks could the use of crypto-assets - including Non-Fungible Tokens - pose for individuals, the economy, and the workings of both the public and private sectors?
  • How can distributed ledger technology be applied in the financial services sector?
  • What work has the Government (and its associated bodies) done to understand, prepare for and, where relevant, encourage changes that may be brought about by increased adoption of crypto-assets?
  • How might the Government’s processes – for instance, the tax system - adapt should crypto-assets be adopted more widely?
  • How effective have the regulatory measures introduced by the Government - for instance around advertising and money laundering - been in increasing consumer protection around crypto-assets?
  • Is the Government striking the right balance between regulating crypto-assets to provide adequate protection for consumers and businesses and not stifling innovation?
  • Could regulation benefit crypto-asset start-ups by improving consumer trust and resilience?
  • How are governments and regulators in other countries approaching crypto-assets, and what lessons can the UK learn from overseas?
  • The environmental and resource intensity of using crypto-asset technology.

Submissions can be made via an online form and are requested by 5 pm Monday 12 September.

Useful guides on this topic

How are Cryptoassets taxed in the UK? At a glance (Freeview)
How do you tax Bitcoin? Are cryptocurrency or cryptoasset gains or profits, taxable? Can you obtain tax relief if you make losses on Bitcoin? 

How are Bitcoin, cryptocurrencies or cryptoassets taxed in the UK
How do you tax Bitcoin? Are cryptocurrency or cryptoasset gains or profits, taxable? Can you obtain tax relief if you make losses on Bitcoin? Gains on transactions in cryptoassets are potentially taxable in the same way as other investments. 

External links

The crypto-asset industry: Call for Evidence

The crypto-asset industry: Submit evidence


Oak ad
Are you enjoying our content? 

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.

 

 

 

Enjoying the Practical Tax content on www.rossmartin.co.uk? 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad