The United Kingdom has initiated a consultation regarding its plans to integrate the Organization for Economic Co-operation and Development’s (OECD) cryptocurrency reporting standards into its legal and fiscal framework, a development that followed closely on the heels of the country’s spring budget disclosure.
The Treasury, which oversees the nation’s financial strategies, anticipates that this move will generate substantial revenue. It projects an influx of £35 million ($45 million) in the fiscal period between 2026 and 2027 and expects this amount to rise to £95 million between 2027 and 2028.
The OECD framework’s introduction is designed to improve compliance with tax obligations and update the pre-existing guidelines on offshore accounts, ensuring a more effective sharing of transaction data related to cryptocurrencies across jurisdictions. The framework’s implementation is a critical step in aligning with international standards aimed at sealing the loopholes in the tax transparency system brought about by recent fintech innovations and the burgeoning global market for crypto assets.
This initiative is part of a broader effort to combat tax evasion by enhancing the transparency of crypto transactions across international borders. It aims to build upon existing regulations concerning foreign accounts, facilitating easier exchange of information pertaining to crypto assets among nations. The framework is set to be implemented in 2026.
You might also like: OECD introduces tax reporting framework for crypto industry To further refine the implementation process, the Treasury has announced a deadline of May 29 for public consultation. The government plans to issue a comprehensive response based on the feedback received and will engage in additional discussions regarding the draft regulations.
Parallel to this regulatory advancement, the UK has released statutory instrument documentation that empowers law enforcement authorities to freeze crypto assets tied to criminal activities from the end of April, even without a formal conviction. This amendment to the Economic Crime and Corporate Transparency Act 2023 facilitates the National Crime Agency’s ability to seize and confiscate crypto assets linked to illicit activities more efficiently. Moreover, it grants authorities the capability to access crypto assets directly from exchanges and custodian wallet providers and, if deemed necessary, to eliminate these assets from circulation, typically through a process known as burning.
Further, the UK government has also disclosed plans to introduce legislation regulating stablecoins and crypto staking within the upcoming six months. Economic Secretary to the Treasury Bim Afolami has highlighted the government’s commitment to finalizing these regulations before the next general election, emphasizing the urgency and feasibility of achieving this goal within the specified timeframe.
Source : crypto.news by Rony Roy / Mar 7, 2024