The UK has begun consultation on plans to integrate the Organization for Economic Co-operation and Development (OECD) virtual currency reporting standards into its legal and financial framework. This development follows the country's spring budget disclosure.
The Ministry of Finance, which oversees the country's fiscal strategy, expects the measure to generate significant revenue. It expects an inflow of £35 million ($45 million) in the 2026-2027 financial period, and expects this amount to rise to £95 million between 2027-2028.
The introduction of the OECD Framework aims to improve compliance with tax obligations, update existing guidelines on offshore accounts, and ensure more effective sharing of transaction data related to virtual currencies between jurisdictions. Masu. The introduction of this framework is an important step towards alignment with international standards aimed at closing loopholes in the tax transparency system brought about by recent fintech innovations and the burgeoning global market for crypto assets. It is.
This initiative is part of a broader effort to combat tax evasion by increasing the transparency of cross-border crypto transactions. It aims to build on existing regulations regarding foreign accounts and facilitate the exchange of information regarding crypto assets between countries. The framework is scheduled to come into force in 2026.
To further improve the implementation process, the Ministry of Finance has announced a May 29 deadline for public consultation. The Government will publish a comprehensive response based on the feedback received and will hold further discussions on the draft regulations.
In parallel to this regulatory development, the UK has published a statutory document giving law enforcement authorities the power to freeze crypto assets linked to criminal activity from the end of April, even without a formal conviction. This amendment to the Economic Crime and Corporate Transparency Act 2023 will enable the National Crime Agency to more efficiently seize and confiscate crypto assets related to illegal activities. Additionally, it gives authorities the ability to access crypto assets directly from exchanges and custodian wallet providers and, if necessary, remove these assets from circulation, typically through a process known as burning.
Additionally, the UK government has announced plans to introduce legislation to regulate stablecoins and crypto staking within the next six months. Finance Secretary for Economic Affairs Bim Afolami stressed the government's commitment to finalizing these regulations before the next general election, stressing the urgency and feasibility of achieving this goal within the specified period. emphasized.
