CryptoUK has responded to @HMRCgovuk's technical consultations on draft legislation covering the tax treatment of stablecoins, cryptoasset loans and liquidity pools, and proposed reforms to civil tax information and inspection powers. On stablecoins and DeFi, CryptoUK supports the overall direction of travel. The proposed Capital Gains Tax exemption for eligible stablecoins should reduce unnecessary friction for individuals and trustees, while treating genuinely interest-like returns as interest and bringing eligible stablecoins within the corporation-tax loan relationship rules reflects their economic role. We also support no-gain/no-loss treatment for qualifying cryptoasset lending, borrowing and automated market making arrangements where a participant’s underlying economic exposure has not changed. Our response focuses on making the rules workable in practice. We ask HMRC to maintain a clear, dated list of eligible stablecoins; provide guidance on unlisted assets, changes in eligibility and section 104 pooling; and continue developing worked examples with software providers and industry. We welcome HMRC’s detailed examples to date, while identifying further areas where guidance may be helpful, including complex liquidity positions, wrappers and arrangements spanning commencement. On civil information and inspection powers, CryptoUK supports targeted powers needed for legitimate compliance checks and international information exchange. However, we do not support the measure in its current form. The proposed scope, including its potential application to tax-software and other non-transactional providers, remains too broad and uncertain. We ask the Government to withdraw or defer the measure pending clearer boundaries and safeguards. These should include a least-intrusive request sequence, protections for sensitive linked identity and holdings data, an express exclusion for private keys and other controlling credentials, enhanced approval for high-risk requests, and retention of annual reporting on Financial Institution Notices. You can download PDFs of our full responses via our website: cryptouk.io/resources/crypto… A special thank you to Suzanne Morsfield, Laura Knight, and Louise Lane for their valuable expertise and support in helping to shape these responses. To learn more about CryptoUK’s Tax Working Group, including its work and priorities, visit: cryptouk.io/working-groups/t…

New partner 🥳 We're thrilled to welcome @bitcoinpolicyuk — a not-for-profit organisation committed to positioning the UK as a global leader in Bitcoin adoption and mining — to the CryptoUK community. Around the world, Bitcoin’s role in financial resilience, innovation, and national reserves is growing. The UK now faces a choice: lead in responsible Bitcoin adoption or fall behind as other nations take decisive steps. Susie Violet Ward, CEO & Co-Founder, Bitcoin Policy UK, commented: "The UK has a unique opportunity to shape its Bitcoin policy. While countries like the US explore national reserves and industrial-scale mining, we in the UK must also leverage Bitcoin for financial inclusion, innovation, and economic growth. By collaborating with policymakers and industry, we can set a global benchmark for responsible adoption." Freddie New, Chief Policy Officer & Co-Founder, Bitcoin Policy UK, added: "Bitcoin is more than a financial asset—it’s a technological and economic force. Smart regulation can unlock investment, create jobs, and integrate Bitcoin mining into the UK’s renewable energy strategy. A clear, innovation-friendly policy framework will keep us competitive in the global digital economy." For over 15 years, Bitcoin has led the way in decentralised finance and digital asset innovation, laying the foundation for a rapidly evolving financial system. As Bitcoin Policy UK highlights, mining can support the UK’s sustainability goals by utilising surplus renewable energy, reducing waste, and helping to stabilise electricity grids, while at the same time potentially reducing costs for end consumers, as curtailment payments could be paid instead by miners. This is just one example of Bitcoin’s broader utility, which—alongside the wider crypto and digital asset ecosystem—is driving innovation critical to the UK’s global competitiveness. Su Carpenter, Executive Director, CryptoUK, commented: "Bitcoin’s role in the UK economy is increasingly strategic. Our partnership with Bitcoin Policy UK highlights the need for policies that support its long-term potential. At CryptoUK, we continue advocating for a regulatory framework that enables growth across the entire crypto and digital asset ecosystem, ensuring the UK remains at the forefront of digital finance and the rapidly evolving global digital economy." CryptoUK brings together industry leaders and innovators, including blockchains, cryptocurrency exchanges, institutional investors, payment providers, digital asset custodians, professional services firms, and more. As members of CryptoUK they gain access to: ✅ Expert-led working groups ✅ Exclusive events and networking ✅ Opportunities to engage with regulators and policymakers No matter the size of your organisation, we offer membership opportunities tailored to your needs. Join us today in shaping the UK’s crypto and digital asset landscape 👉cryptouk.io/