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British Secretary of State Michael Bates: Britain does not intend to accept cryptocurrency as tax bill payment

The UK-based tax authority, the Royal Revenue and Customs Service (HMRC), said it would not accept cryptocurrencies as a payment option for a while.

That is what at least Michael B. Bates, the British Secretary of State, thinks so, answering this question in a reply he posed to a question raised by Jonathan Harris, a member of the British parliament.

Bates wrote:

"HMRC did not accept digital currency as a payment method and there is currently no plan to do so."
In a reply to Hrris, Bates said that profits from the investment in cryptocurrencies are "currently taxed at the normal capital gains tax rate, and as the case may be."

These benefits can be substantial. Since the end of last year, bitcoin's rate of return has been as high as 10 times, including a brief break of $ 10,000 in bitcoin prices earlier this week. As of press time bitcoin price of about 6992.34 pounds (about 6463 US dollars).

Harris also asked several questions about cryptocurrency regulation.

Bates said the government plans to put crypto-currency wallet providers and exchanges under the anti-money laundering rules and the ongoing amendments under the EU directive. He told Harris that negotiations on these amendments should come to an end early next year.

Bates wrote:

"This requires that these companies conduct due diligence on their clients and supervise these activities by the national authorities in these regions."
In response to Harris's question about banks' unwillingness to provide bank accounts to digital money companies and their employees - a problem that has plagued British cryptocurrencies for years - Bates does not encourage the government to intervene in such behavior.

He wrote:

"The position of individual companies on digital money providers is the business decision of these companies and government intervention is not appropriate."