In this article, we will try to figure out what causes a stunning and constantly growing interest in virtual currencies, in particular, Bitcoin, and why registering a company for working with cryptocurrency is now gaining popularity among entrepreneurs, in particular, in the United Kingdom.
Bitcoin was developed primarily as a response to the global financial crisis. It was during that period that the risks associated with financial intermediaries became particularly evident. In this regard, it is useful to familiarize yourself with the original document of Satoshi Nakamoto, which is considered to be the starting point for understanding some of the properties and potential advantages of virtual currencies.
Many people support the fact that virtual currencies should not be controlled by either the government or banks. The global financial crisis has led to an unconventional deviation from central regulation in this area. In simple words, an era has come when confidence in government institutions has been lost.
What are virtual currencies?
First of all, it is worth noting the main property of these assets – they are trying by all means to stay outside the existing financial system. And if disruptions suddenly occur in this system, which, you must agree, is not uncommon, or hyperinflation occurs, then in the minds of many virtual currencies act as a safer means of storing funds.
The use of virtual currencies is also attractive for transactions related to sending and receiving money at the international level, since this can be done quickly and with minimal commission fees and at a favorable exchange rate. Cryptocurrencies are also convenient for non-bank transfer of funds. One cannot but mention such an important prerogative of these currencies as anonymity.
How are cryptocurrencies regulated in the UK?
If you want to launch an ICO in the UK or register a company to work with cryptocurrency in the UK, then you should know that there is no legislation directly regulating virtual currency in the United Kingdom.
Perhaps this is good news! Moreover, virtual currencies are so special and unlike anything that they do not fit into the existing regimes of financial regulation. They are not subject to the regulation of securities, payment service providers and other traditional financial instruments. At the same time, operations with cryptocurrencies go beyond the laws on combating money laundering in Britain, which is not very good news for entrepreneurs doing healthy business.
However, the government of this country recently announced its intention to apply anti-money laundering rules for cryptocurrency exchanges and cryptocurrency holders. So soon, in this area is expected to tighten the rules of the game.
At the moment, Bank of England has announced its intention to create its own digital currency.
It is assumed that at some point in the future, obtaining a license for a cryptocurrency exchange in the UK will become a more regulated issue.
Registration of a company for working with cryptocurrency in Europe is a separate issue of each specific jurisdiction. The European Union is taking concrete steps to ensure that cryptocurrency exchanges and holders work strictly within the framework of the European AML regime. However, the question still remains how to define virtual currencies, that is, whether they should be considered as a regulated financial instrument or as a payment mechanism.
It is a mistake to believe that registering a company to work with an ICO in the UK implies tax evasion. Working with virtual currency does not exempt from the payment of value added tax.
Transactions related to virtual currency are taxed accordingly to the purpose and nature of the transaction and are generally taxed in the same way as traditional currencies. When you own and sell virtual currencies, if there is profit or loss, it is treated in the same way as profit received from other goods or in other currencies.
IQ Decision UK lawyers keep their eyes on the ball and monitor the information field related to cryptocurrency. If you want to register a startup for an ICO in the UK, the competent specialists of our company will provide their legal support. Order an individual consultation on the regulation of virtual currencies in the UK, and get comprehensive answers to all your questions.