Surprisingly, the United Kingdom cryptocurrency regulation is much different than that of a country like the USA. They actually view Bitcoin and other digital money as a foreign currency, and that means taxes and VAT apply differently than they would in a nation where it is viewed as property.

Coins and tokens are not regulated, and that gives the users of them much more freedom than they would in other nations. When simply exchanging currencies VAT does not apply, but it will if those currencies are used to purchase goods and services. Investors will also owe capital gains taxes on profits.

It seems though that when it comes to business the UK is taking a far different stance than the US. Thanks to the Brexit fiasco many companies are moving away from the country, and it seems being more welcoming to blockchain companies is being used as a way to lure them back to acquire much-needed jobs and tax revenue from these new blockchain entities.

However, it seems that crypto friendly nations like Estonia and Malta are way ahead of them, and they'll need to do a lot to entice blockchain companies to set up shop on the mainland instead where things are often viewed as less favorable.