🔥 TOP STORY
Ethereum Price Predicted to Climb in the Long Run as Buterin Explains Need for Higher Coin Values
Ethereum Price Predicted to Climb in the Long Run as Buterin Explains Need for Higher Coin Values

UK Publishes Information on Tax Issues for Crypto Investors

  • Stavros Georgiadis
    🤷 Opinions

    The UK government is signaling that it is treating crypto assets more as property than as a form of money

UK Publishes Information on Tax Issues for Crypto Investors
You may also like:

The UK’s Revenue and Customs agency (HMRC), which is responsible for collecting taxes, issued a detailed report on how crypto assets might be taxed, but this for now applies only to individual traders and not to businesses.

UK taxation on crypto assets

The UK government is signaling that it is treating crypto assets more as property than as a form of money. And this is in contrast with the main idea of cryptocurrencies, being an alternative form of digital currency, a decentralized form of financial payments and different from so called fiat currencies and money.

HMRC does not consider crypto assets to be currency or money, but rather utility tokens or security tokens. A very important highlight is that, for tax purposes, the focus is on the token’s use, and by no means based on its definition. What this really means is that individual traders or investors in the UK will pay capital gains and income tax if they receive cryptocurrency tokens by their employers as a form of compensation, such as a bonus for their performance.

It is also noteworthy to mention HMRC will not consider the purchase and sale of crypto assets to be the same as gambling. And HMRC will soon issue guidance about tax issues related to the businesses and more details about how the forks of a blockchain may impact taxation as well.

image

Beware of cryptocurrency trading groups

Researchers recently announced that they found literally thousands of groups on messaging applications with the main purpose the manipulating the price of cryptocurrencies, which is both illegal and immoral. What is interesting in the report is that the lower the volume of cryptocurrencies, the much easier it is for their price to be manipulated due to the illiquid market conditions.

In the US, where the regulation of financial and capital markets is very strict and high fines are imposed on fraudulent activities, two bills about cryptocurrency manipulation will soon be sent for consideration to the House of Representatives. And it is no surprise that technological stock exchange Nasdaq has mentioned that it already has a technology that can address potential manipulation of the cryptocurrency market.

Trading in any financial market entails a lot of risk regarding losses of the invested capital. The cryptocurrency market is no exception, and though it has been criticized heavily in the recent past, the appearance of illegal pump-and-dump groups should really be of no surprise at all. It is highly recommended that traders avoid these groups, conduct their own due diligence, and invest or trade based on their own trading plan.

Financial history has shown that these illegal groups have been active in equities, mainly low volume stocks, the Forex market, options and in general, almost all types of financial instruments.

The fastest way to get crypto news is to follow our Twitter. You won’t miss a thing! Subscribe.
👓 Recommended articles
something-wide
something-wide

Ethereum Price Predicted to Climb in the Long Run as Buterin Explains Need for Higher Coin Values

  • Jack Thomas
    🤷 Opinions

    Vitalik Buterin, the co founder of Ethereum, has come out and said that while the price of a coin is not that important, it is still a good thing for ETH to rise. He made mention of security, and the ecosystem development being better when the price of Ethereum is higher.

Ethereum Price Predicted to Climb in the Long Run as Buterin Explains Need for Higher Coin Values
You may also like:
Contents

Ethereum is in a key phase of its development, having pioneered the smart contract blockchain. It is now in a position to take things further and grow its ecosystem as it looks to, for one, switch its algorithm from proof-of-work to proof-of-stake.

This development of the ecosystem will no doubt have an effect on the price of the Ether token, but more than that, Ethereum’s co-founder Vitalik Buterin has said that a higher Ethereum price is good for the development of the Ethereum ecosystem, as well as adds a higher level of security.

Essentially, it is a double-edged sword as the price of Ethereum is expected to rise when any cryptocurrency project is doing well, but the long term price prediction is then expected to rise, as Buterin adds it will help improve the project further.

Buterin’s beliefs

Buterin made his comments during an interview for Laura Shin’s crypto-focused “Unchained”.

In response to Shin’s question as to whether protocol designers and project leaders should be focusing on the question of a cryptocurrency’s price, Buterin spoke of how the Ethereum project had explicitly downplayed the importance of the asset’s value earlier on in Ethereum’s history.

“In part, it was counter-signaling to distinguish ourselves from other crypto projects that do pumping and lambo-ing way too much. But it was also about minimizing legal risk by basically trying to make the project seem more distant from something that would be covered by financial regulation.”

However, he has now gone on to explain that in today’s context, the price does in fact have a part to play.

“I can tell you what things are clearly important about why the price being higher rather than lower is good. One of them is obviously security. If the price is zero, then the network can’t be secure. That’s true in proof-of-work and proof-of-stake,” he added.

Long-term price prediction

With this being said, it makes sense that the price of Ethereum is thus being aimed at long-term growth. The project itself is working on improving its own worth and value as a blockchain project, and in that, the price of Ether should also naturally rise.

And, with a focus being on the importance of a higher price adding to the value of a blockchain project, this could even compound the growth of Ether's price in the long run.

In this Telegram channel you’ll find fresh news, interviews, infographics, forecasts & other helpful stuff. Join U.Today's channel.
👓 Recommended articles
something-wide
something-wide