The future of crypto assets and ETC Tax’s place in that future

As investors suffer from the dramatic fall in value of crypto assets, we are using our technical know-how (both in tax and in crypto) to help clients mitigate their position.

Riding the Wave

Accountancy Age warns accountants in their excellent article that they need to prepare for a crypto “tidal wave”. Are you prepared to assist your clients in this space?

At ETC Tax, we are already riding that wave as it surges. We were dealing with people’s tax returns for crypto gains and income more than six years’ ago. These days, we are not only doing that but also providing cutting-edge advice in all areas of UK tax in the crypto space, from VAT treatment for selling NFT’s to securing research and development relief for developers of crypto projects to incorporating multi-national corporate structures for crypto ventures.

Though our focus is always on highly technical advisory work, we remain fully capable of meeting the self-assessment needs for individual and corporate clients in crypto space.

Often, we work alongside other advisers, from accountants to lawyers to ensure that advise meets all requirements.

We think that Accountancy Age are right; crypto is here to stay, despite the latest substantial collapse in the price of cryptocurrencies. We’ve been there before.

There are many reasons for the market to be much, much more volatile than other markets, such as stocks and commodities. These include that the market is still very immature, that the underlying value of cryptoassets is not yet understood or even yet calculable as such valuation will depend on the utility of the assets, which has only just begun to emerge. On top of that the market is open 24/7 and thanks to DeFi protocols, anyone and everyone is able to get stuck in (and they are, with gusto).

If you have any doubt about the adoption of crypto, we could point to a number of things which suggest that the future for crypto is very strong:

• Immutable and permanent web domains existing on blockchains are now a thing;
• The secure and immutable nature of blockchain technology is being leveraged by governments in various areas;
• Microsoft, Meta (née Facebook), Google, Nvidia, Unity Software, Shopify, Roblox, Qualcomm and many others are investing heavily in the metaverse space (we are helping several developers in this area);
• Blockchain technology allows value to be transferred all but instantaneously, anywhere in the world and at a fraction of the cost of using banks or other traditional means;
• DeFi protocols allow the trading of assets without any middleman involved, among very many other exciting developments, most of which we have yet to see or even imagine.

As application and utility in the crypto / blockchain / metaverse space emerges and develops, we will remain at the forefront of the implications for UK taxation.

Get in touch today if you or your clients need good, technical tax advice in this space, which is founded on good, technical understanding of the technology involved. And if substantial crypto assets or new development are in play, then you will need that tax advice…