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In total contrast to last year’s chain of events surrounding Bitcoin which would cause even the most risk-hungry investor to head for the hills, the overwhelming turn in the opposite direction this year in North America has made its way across the Atlantic to Britain as the nation’s Treasury prepares to include important aspects relating to Bitcoin in the annual Budget.
In Britain, the Chancellor of the Exchequer delivers the Budget each year, which consists of new financial measures intended to grow the economy as well as new taxation rules, as well as the annual declaration of spending by public sector organizations.
A spokesman for the UK Treasury has revealed to Cryptocoinsnews.com that a study has commenced which involves several government agencies, on Bitcoin’s potential for innovation on financial commerce as well as its potential risk. This study is expected to conclude with proposals for the 2015 Budget which will be held by the Chancellor of the Exchequer in March next year.
On this basis, it is likely that virtual currency may be one of the hot topics during the Chancellor of the Exchequer’s Budget announcements on the economy, and that detailed issues relating to the application of Bitcoin may be discussed, including measures to help Bitcoin related businesses to raise finance, a dynamic which has been pioneered this year by various venture capital firms investing in Bitcoin technology companies.
Despite New York State’s financial regulatory authority having set forward a series of regulatory parameters for Bitcoin, Britain has become a favored jurisdiction in which to conduct business with virtual currency, and nestles among very strong and technologically advanced financial markets economies such as Switzerland, Israel and Canada.
Chancellor George Osborne has plans to raise Britain’s stakes as a center for Bitcoin, a matter upon which he has been vocal this summer, having stated his wishes to elevate Britain from its traditional banking roots to becoming a world center for financial technology.
A further advantage which stands London in good stead for future Bitcoin business is its favorable Bitcoin taxation rules. While all English Speaking jurisdictions have classified Bitcoin as property and tax it likewise, Britain’s government considers it to be currency, and therefore differs from Australia’s rulings upon which LeapRate recently reported.
Indeed, with the US government having such confidence in virtual currency, demonstrated by the US Marshal Office holding an auction of Bitcoins this year, the government-level interest in incorporating Bitcoin into the fiscal structure of nations which are home to prominent financial centers such as the United States, Switzerland and now the United Kingdom is certainly an intriguing move, at a time when Western governments are taking a conservative approach to financial policy post-financial crisis.