The United Kingdom has announced a new 2% tax on cryptocurrency exchanges, which is likely to affect the decisions of British investors.
The latest update to UK tax regulations introduced a tax on digital services to be levied on cryptocurrency exchanges operating in Britain.
UK crypto exchanges will now have to pay a 2% digital services tax, according to Cointelegraph.
The HMRC does not recognize digital assets as financial instruments, so exchanges are not eligible for financial exemptions.
The FCA yesterday listed cryptocurrency exchanges under the technology tax imposed by the Department of the Treasury.
A digital services tax was introduced on revenue in April 2020, targeting social media and search giants like Facebook and Google.
The latest blow to crypto exchanges comes as a result of the HMRC's classification of crypto assets, the regulator explained.
According to CryptoUK, the trade body representing Britain's digital asset sector, the tax is unfair and likely to affect investors and traders.
