UK crypto exchanges set to pay 2% tax

Karthik Subramanian

UK-based crypto exchanges would now need to pay a new 2% digital service tax as per some of the latest laws as the crypto regulations and classification in the UK continue to pose problems to regulators and users alike.


This is not just an isolated problem but authorities all around the world are now grappling on what needs to be done with crypto and how to deal with it. For many years, the authorities had chosen to ignore the crypto industry as they felt that it was just a new fad that would vanish after a couple of years but the industry has managed to stand the test of time and over the last year or so, it has only grown stronger.

Crypto Industry Growth

This has pushed the regulators to sit up and take notice and in many cases, they have been scrambling to take action before things get out of their hands. In some cases like that of Binance, they have also been forced to take some retrospective action which has not only affected the respective platforms but also the thousands of users on it as well.

As far as the UK is concerned, the way that the regulators have gone after Binance makes it clear that they do not view the crypto industry very kindly at this time and this is further proved by the fact that the crypto exchanges based out of the UK will now have to pay a 2% digital services tax as they are not yet recognised as entities that offer financial services. This tax would not apply if they had indeed been classified as financial firms but the lack of this application would mean that the exchanges would have to pay this tax. This is viewed as a retrograde step by many of the crypto enthusiasts and insiders and they have been urging the government to quickly decide on what they plan to do with the crypto industry as the uncertainty is only harming the industry and its usrets as well.

Uncertainty adds to Pressure

This uncertainty only seeks to add more pressure on the regulators themselves as their actions would be closely monitored and scrutinised by the users and the crypto business owners. It is clear that regulation for the crypto industry is coming in the UK and the sooner that the users know the shape and form that it is likely to take, the easier it would be for all.


Read this next

Digital Assets

EOS Network Foundation rebrands EOSIO protocol as Antelope

The EOS Network Foundation (ENF), the new entity entrusted by the EOS community to develop its core blockchain software, said Antelope protocol will fork from EOSIO 2.0 and make “a leap for freedom.”

Digital Assets receives FCA greenlight to operate in the UK, one of the longest-established crypto platforms, has received a regulatory go-ahead to launch its services in the UK.

Retail FX

Plus500 reports $511.4 million revenue for the first semester 2022

Plus500 today has published its interim financial results for the first six months of its fiscal year 2022.

Digital Assets

AAX ranked among top crypto exchanges by CoinGecko and CryptoCompare

CoinGecko, one of the earliest crypto data aggregators, has ranked Atom Asset Exchange (AAX) as one of the most trusted cryptocurrency trading platforms. This milestone comes hot on the heels of AAX being recognized as the world’s second largest crypto exchange by spot trading volumes.

Retail FX

Financial Commission adds FX broker Bold Prime to membership roster

The Financial Commission today announced that it has added Bold Prime to its member roster, which is made up of online brokerages operating in FX, derivatives and cryptocurrency markets.

Digital Assets

Despite crypto winter, Cake DeFi paid out $58 million in Q2 rewards

According to its latest ‘Transparency Report,’ Cake DeFi continued its growth trajectory in the three months through June 2022, even as the entire crypto industry experienced macro challenges this quarter.

Retail FX

SimpleFX Review: Cryptos, Spreads, Pros & Cons

SimpleFX combines years of Forex and cryptocurrency experience with a focus on offering resources to retail traders. 

Retail FX

Ironbeam becomes CME clearing member and launches MT5

“The direct clearing aspect along with our low-latency proprietary trading tools and technology solutions make Ironbeam the ideal trading destination.”

Institutional FX

Top 0.07%: oneZero makes it to Inc. 5000 of fastest growing companies in America

oneZero started out by serving the foreign exchange trading community, developing and executing technology that could scale with the growth of the FX market.