Share this article
U.K. Won't Accept Cryptocurrency for Tax Bills, Minister Says
The U.K. government does plan to regulate exchanges and wallet providers, but won't intervene to help such startups get bank accounts.
By Brady Dale
Updated Sep 13, 2021, 7:12 a.m. Published Nov 30, 2017, 6:15 a.m.
HM Revenue and Customs, the U.K.'s chief tax authority, won't be accepting cryptocurrency as a payment option anytime soon.
At least that's according to Lord Michael Bates, a minister of state, who addressed the question in a written response to a question from a member of Parliament, Lord Jonathan Harris.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Lord Bates wrote:
"HM Revenue and Customs does not offer digital currencies as a payment method and has no current plans to do so."
Profits made on speculation in cryptocurrency "are currently chargeable at the normal Capital Gains Tax rates, depending on the facts of the case," Bates wrote in response to a separate question from Lord Harris.
Those gains could be considerable. Bitcoin alone has made a 10x return since the end of last year, including briefly crossing the psychological threshold of $10,000 this week. At press time, bitcoin is trading at £6,992.34.
Lord Harris asked several other questions concerning cryptocurrency regulation.
In response to another, Lord Bates said that the government plans to bring wallet providers and exchanges under anti-money-laundering rules, pending amendments to a European Union directive. Negotiations over those amendments should wrap up by early next year, he told Lord Harris.
"This will require such firms to conduct due diligence upon their customers, with their activities being overseen by national competent authorities for these areas," Bates wrote.
And in answering Lord Harris' question about U.K. banks' reluctance to provide accounts to digital currency firms and their employees – a problem faced by startups in the space for years – Bates offered little encouragement.
"The stance of individual firms towards providers of digital currencies is a commercial decision for those firms, and it would not be appropriate for the Government to intervene," he wrote.
Parliament image via Shutterstock.
Mehr für Sie
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
Was Sie wissen sollten:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin's breakout lifts crypto equities and miners in pre-market trading
Bitcoin pushes above $92,000 as stocks tied to crypto, AI mining, and metals rally in pre market trading.
What to know:
- Bitcoin breaks above $92,000, briefly touching $93,000.
- Strategy (MSTR) rises 3.5% to $163 ahead of a potential bitcoin purchase announcement.
- AI-linked miners CIFR, IREN, and HIVE extend strong gains.
- Gold, silver, and the DXY index continue to strengthen following weekend Venezuela US developments.
Top Stories
