Global Digital Finance (GDF) and the Crypto Council for Innovation (CCI) submitted a joint response to HMRC’s Call for Evidence on the taxation of stablecoins. The response supports the UK government’s recognition that stablecoins represent a distinct category of digital assets primarily designed for payments, settlement, and financial market infrastructure use cases.
GDF and CCI argue that qualifying stablecoins should be treated as money-like for tax purposes, rather than as speculative cryptoassets. The response highlights that the current Capital Gains Tax (CGT) treatment creates disproportionate administrative burdens for individuals using stablecoins for routine payments and remittances, discouraging adoption and undermining the UK’s broader digital asset and payments innovation objectives.
The submission recommends a full CGT exemption for qualifying stablecoins and advocates for a more coherent Corporation Tax framework that treats qualifying stablecoins consistently with fiat currency and money debts. It also calls for greater clarity regarding the tax treatment of stablecoin lending and stresses the importance of ensuring that tax reforms align with the UK’s wider regulatory framework for digital assets and payments innovation.
Overall, GDF and CCI encourage HMRC to adopt a proportionate, future-proof, and internationally coherent tax framework that supports stablecoin adoption and reinforces the UK’s ambition to become a global digital finance hub.
Submitted:
(TBC)