The United Kingdom has launched a consultation on integrating the Organization for Economic Co-operation and Development’s (OECD) cryptocurrency reporting standards into its legal and fiscal framework. This move comes in the wake of the country’s spring budget announcement.

Treasury Projections

The Treasury foresees significant revenue generation from this initiative, estimating an influx of £35 million ($45 million) between 2026 and 2027, with a projected increase to £95 million in the following fiscal year.

Enhancing Tax Compliance

The introduction of the OECD framework aims to improve tax compliance and update guidelines on offshore accounts. This will facilitate the sharing of transaction data related to cryptocurrencies across jurisdictions, aligning with international standards to address tax transparency challenges posed by fintech innovations and the growing crypto market.

Combatting Tax Evasion

As part of a broader effort to combat tax evasion, the UK government seeks to enhance transparency in cross-border crypto transactions. The framework builds upon existing regulations on foreign accounts to streamline information exchange on crypto assets among nations, with implementation slated for 2026.

Regulatory Developments

In addition to the OECD framework, the UK has introduced legislation empowering law enforcement to freeze crypto assets associated with criminal activities without a formal conviction. This amendment enhances the National Crime Agency’s ability to seize and confiscate illicit crypto assets more efficiently, including accessing assets from exchanges and custodian wallet providers.

The government also plans to regulate stablecoins and crypto staking within the next six months. Economic Secretary to the Treasury Bim Afolami has affirmed the government’s commitment to finalizing these regulations before the upcoming general election.

For more updates on cryptocurrency regulations and industry developments, stay tuned to Global Crypto News.

Post Views: 6