Declaration of cryptocurrencies in the UK

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Quote from: zasad@ on July 12, 2023, 08:22:36 AM

The Financial Conduct Authority (FCA) has issued a statement on its ongoing crackdown of crypto ATMs in the UK that are not authorized.

"The FCA says it has investigated 34 locations in the UK since the start of the year, typically working with other law enforcement agencies. So far, during 2023, 26 crypto ATMs have been shut down. 18 sites suspected of operating crypto ATMs across the UK were inspected over May and June by the FCA, South West Regional Organised Crime Unit, Bedfordshire Police, Hertfordshire Police, and the Metropolitan Police.

Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA explained that if you use an illicit crypto ATM, you may be giving your money to criminals, and you could lose all of your money."

The law mandates all crypto firms which include bitcoin ATM service providers to register with FCA to ensure compliance with some measures that limits money laundering and terrorist financing. Without this registration, it is assumed that these ATMs are operating illegally. But from my research, no ATMs in the UK have been registered or certified by FCA. So all ATMs in the UK are operating illegally. I am beginning to wonder if the registration process is too stringent or if there are too many bureaucratic bottlenecks. This crackdown might be an indication that the government wants to limit the use of cryptocurrencyencies.

https://www.google.com/amp/s/amp.theguardian.com/technology/2023/feb/14/fca-and-west-yorkshire-police-raid-crypto-operators-in-uk-first

zasad@

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Quote from: Zoomic on July 10, 2023, 02:38:59 AM

Quote from: zasad@ on July 07, 2023, 06:08:23 AM

Fraudsters and criminals are also not stupid people and they will use mixers and mix transactions. In the darknet, services charge 5-6% of the amount for such a service. Honest users who buy cryptocurrency on exchangers usually suffer from blocking. Exchanges don't write their policies. If your payment contains 2% "dirty" bitcoins or your payment contains 20% "dirty" bitcoins, then 2 payments can be blocked.

It is true that the criminals are not stupid people, while I made the above comment I was centered on mixers and exchanges and forgot about the darknet. It is becoming clearer than more innocent people will be indicted. The real criminals might never be caught.
After I read this from the article

Quote

Yet another amendment accepted on Tuesday to the Civil Jurisdiction and Judgments Act 1982 ensures courts across the U.K. can ask authorities to seize and freeze crypto tied to crime. Measures that will ensure seized assets aren't released until legal proceedings are concluded were also added to the bill.

This made me think how someone who is holding coins securely and offline with privacy would be tracked that he owns crypto to be sized.

It's good that there are still exchanges without KYC
https://bitcointalksearch.org/topic/--5414537

In the UK, the authorities do not want citizens to have ways to illegally buy and sell cryptocurrency:

https://www.crowdfundinsider.com/2023/07/209850-uk-financial-conduct-authority-updates-on-ongoing-eradication-of-illegal-crypto-atms/
The Financial Conduct Authority (FCA) has issued a statement on its ongoing crackdown of crypto ATMs in the UK that are not authorized.

"The FCA says it has investigated 34 locations in the UK since the start of the year, typically working with other law enforcement agencies. So far, during 2023, 26 crypto ATMs have been shut down. 18 sites suspected of operating crypto ATMs across the UK were inspected over May and June by the FCA, South West Regional Organised Crime Unit, Bedfordshire Police, Hertfordshire Police, and the Metropolitan Police.

Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA explained that if you use an illicit crypto ATM, you may be giving your money to criminals, and you could lose all of your money."

pawel7777

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Quote from: zasad@ on July 06, 2023, 10:10:50 AM

...
https://www.coindesk.com/policy/2023/07/04/uk-lords-pass-bill-to-help-seize-and-freeze-crypto-used-for-crime/
...

Not much of a surprise here, we couldn't expect crypto to have any preferential treatment. So if all kinds of assets that proceeded from crime could be seized, then crypto should not be an exemption.

Coinbase did phrase this one a bit oddly though:

Quote

While the House of Lords didn't make changes to crypto aspects of the bill, during earlier proceedings it was amended to ensure the measures extended to terrorism cases and measures to help authorities seize property that can help identify crypto linked to crime were added. Plus, an amendment was added to ensure courts can ask authorities to seize and freeze crypto used for crime.

It reads as if the authorities not only could seize crypto proceeded from crime, but also seize crypto that can help identify crypto from crime. Whatever that means.

I tried to verify it with the bill itself, but it's pretty lengthy: https://www.legislation.gov.uk/ukpga/2023/29/enacted

Zoomic

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Quote from: zasad@ on July 07, 2023, 06:08:23 AM

Fraudsters and criminals are also not stupid people and they will use mixers and mix transactions. In the darknet, services charge 5-6% of the amount for such a service. Honest users who buy cryptocurrency on exchangers usually suffer from blocking. Exchanges don't write their policies. If your payment contains 2% "dirty" bitcoins or your payment contains 20% "dirty" bitcoins, then 2 payments can be blocked.

It is true that the criminals are not stupid people, while I made the above comment I was centered on mixers and exchanges and forgot about the darknet. It is becoming clearer than more innocent people will be indicted. The real criminals might never be caught.
After I read this from the article

Quote

Yet another amendment accepted on Tuesday to the Civil Jurisdiction and Judgments Act 1982 ensures courts across the U.K. can ask authorities to seize and freeze crypto tied to crime. Measures that will ensure seized assets aren't released until legal proceedings are concluded were also added to the bill.

This made me think how someone who is holding coins securely and offline with privacy would be tracked that he owns crypto to be sized.

zasad@

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Quote from: Zoomic on July 07, 2023, 03:59:35 AM

Quote from: zasad@ on July 06, 2023, 10:10:50 AM

UK Lords Pass Bill to Help Seize and Freeze Crypto Used for Crime
The bill, introduced in September, now enters its final stages in Parliament.
https://www.coindesk.com/policy/2023/07/04/uk-lords-pass-bill-to-help-seize-and-freeze-crypto-used-for-crime/

__
The new law will allow to arrest and freeze the cryptocurrency, which will be used in crimes. Economic crimes and tax evasion are also included.

Cool and better than hunting the whole platform down. If the crypto used for crime is found in an exchange, it should be freezed and not the exchange.
If found in a mixer, it should be freezed and not the mixer. Although it will be difficult to track the particular coin when it has mixed with the pool of other coins. As time passes, government will have a better way to regulating cryptocurrency and get ride of crime in the system.

Fraudsters and criminals are also not stupid people and they will use mixers and mix transactions. In the darknet, services charge 5-6% of the amount for such a service. Honest users who buy cryptocurrency on exchangers usually suffer from blocking. Exchanges don't write their policies. If your payment contains 2% "dirty" bitcoins or your payment contains 20% "dirty" bitcoins, then 2 payments can be blocked.

Zoomic

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Quote from: zasad@ on July 06, 2023, 10:10:50 AM

UK Lords Pass Bill to Help Seize and Freeze Crypto Used for Crime
The bill, introduced in September, now enters its final stages in Parliament.
https://www.coindesk.com/policy/2023/07/04/uk-lords-pass-bill-to-help-seize-and-freeze-crypto-used-for-crime/

__
The new law will allow to arrest and freeze the cryptocurrency, which will be used in crimes. Economic crimes and tax evasion are also included.

Cool and better than hunting the whole platform down. If the crypto used for crime is found in an exchange, it should be freezed and not the exchange.
If found in a mixer, it should be freezed and not the mixer. Although it will be difficult to track the particular coin when it has mixed with the pool of other coins. As time passes, government will have a better way to regulating cryptocurrency and get ride of crime in the system.

zasad@

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Quote from: ALiceMarty on July 06, 2023, 04:34:40 AM

According to the announcement made by Chancellor of the Exchequer Jeremy Hunt in the annual budget, U.K. taxpayers will be required to separately report their crypto assets on their tax forms. This new requirement is expected to generate an additional 10 million British pounds (US$12 million) per year in tax revenue.

The U.K. Treasury stated in a document published on Wednesday that changes will be made to the Self Assessment tax return forms, specifically requiring taxpayers to identify and report amounts related to cryptoassets separately. These changes will come into effect in the tax year that ends in April 2025.

The introduction of this new reporting requirement indicates the government's intention to ensure proper taxation of crypto assets and increase transparency in this growing sector. By separately identifying cryptoassets on tax forms, the U.K. government aims to ensure that individuals accurately report their crypto holdings and income for tax purposes.

It is important for U.K. taxpayers who hold cryptoassets to familiarize themselves with these upcoming changes and ensure compliance with the new reporting requirements when they come into effect.

UK Lords Pass Bill to Help Seize and Freeze Crypto Used for Crime
The bill, introduced in September, now enters its final stages in Parliament.
https://www.coindesk.com/policy/2023/07/04/uk-lords-pass-bill-to-help-seize-and-freeze-crypto-used-for-crime/

__
The new law will allow to arrest and freeze the cryptocurrency, which will be used in crimes. Economic crimes and tax evasion are also included.

ALiceMarty

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According to the announcement made by Chancellor of the Exchequer Jeremy Hunt in the annual budget, U.K. taxpayers will be required to separately report their crypto assets on their tax forms. This new requirement is expected to generate an additional 10 million British pounds (US$12 million) per year in tax revenue.

The U.K. Treasury stated in a document published on Wednesday that changes will be made to the Self Assessment tax return forms, specifically requiring taxpayers to identify and report amounts related to cryptoassets separately. These changes will come into effect in the tax year that ends in April 2025.

The introduction of this new reporting requirement indicates the government's intention to ensure proper taxation of crypto assets and increase transparency in this growing sector. By separately identifying cryptoassets on tax forms, the U.K. government aims to ensure that individuals accurately report their crypto holdings and income for tax purposes. mcdvoice

It is important for U.K. taxpayers who hold cryptoassets to familiarize themselves with these upcoming changes and ensure compliance with the new reporting requirements when they come into effect.

Welsh

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Thanks, hadn't heard of this news. I'm sure my accountant would've let me know since he's been handling my Bitcoin taxes for a while, but it's always nice to have a heads up. I'll probably seek some clarification from him even though he pretty much does everything for me, when I submit this years taxes, just to make sure I understand what exactly has changed. I've got until April 2024 to wrap my head around it anyhow.

pawel7777

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Just to clarify - it's not like they'll be forcing people to disclose their crypto-holdings, but it's just that taxable gains will be reported separately in the Self-Assessment form. So not much of a change and no idea how they have estimated this will bring an extra £10 mils to the budget. Maybe they're hoping that people who previously didn't bother to report profits from crypto gains will be more likely to do that if the form explicitly asks for such. Makes some sense tbh

This will be effective from April 2024

zasad@

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https://www.coindesk.com/policy/2023/03/15/uk-adds-crypto-declaration-in-tax-forms/
U.K. taxpayers will have to separately report crypto assets on their tax forms in a move that is expected to raise an extra 10 million British pounds (US$12 million) per year for the public purse.
The move was announced by Chancellor of the Exchequer Jeremy Hunt in the annual budget on Wednesday.
“The government is introducing changes to the Self Assessment tax return forms requiring amounts in respect of cryptoassets to be identified separately,” to be introduced in the tax year that ends in April 2025, the U.K. Treasury said in a document published Wednesday.
https://www.gov.uk/government/publications/spring-budget-2023/spring-budget-2023-html
https://www.gov.uk/government/publications/spring-budget-2023-overview-of-tax-legislation-and-rates-ootlar/spring-budget-2023-overview-of-tax-legislation-and-rates-ootlar

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