Cryptocurrencies and U.K.’s authorities

Various digital currencies such as Bitcoin, Ethereum, and others offer several advantages in comparison with fiat currencies. The number of people who own cryptocurrencies continues to rise as they are willing to invest crypto money.

However, the question regarding the crypto regulations remains open for the last several years. Countries around the world are trying to find the best solution, which will help the local authorities to regulate the market.

One of the countries which are not directly regulating the digital currency market is the U.K. In the U.K.; there is no specific crypto-related law.

It is important to mention that digital currencies are not considered legal tender. To operate a cryptocurrency exchange, a person or a company should submit the documents to receive authorization. Companies need to register the cryptocurrency exchanges with the Financial Conduct Authority.

In the U.K., crypto-related activities fall under the same financial regulations as futures and options.

People who own digital currencies or are planning to buy in the nearest future should learn more about the U.K.’s taxes. In the U.K. the gains, as well as losses, are subject to capital gains tax and income tax. It means that the U.K.’s tax authority, which is Her Majesty’s Revenue and Customs will collect taxes from crypto-related businesses.

According to the U.K.’s tax authority buying and selling digital currencies is the same as gambling. As a result, a crypto owner has to pay the capital gains tax. Several months they even requested the names of cryptocurrency exchange customers as well as the information about transactions.

However, it won’t be easy to receive such information because current Anti-Money Laundering laws don’t cover the cryptocurrencies. This will change starting from January 2020 after the implementation of the U.K.’s Fifth Money Laundering Directive.

The price of cryptocurrencies on Wednesday

Recently, Bitcoin struggled price fell below $9,200 support area against the U.S. Dollar. At some point, the price even decreased to a new weekly low near $9,045. However, Bitcoin started to recover, and Bitcoin broke the resistance levels above $9,200 and $9,400. Nevertheless, it was unable to hold the momentum, and Bitcoin’s price started to fall, and right now price is $9,142.

The price of Ethereum increased on October 30 after breaking the resistance levels above $180 and $185. However, at the time of writing, the Ethereum’s price is lower, and the price is $183.