United Kingdom

The UK, known for its crypto-friendly stance, strongly supports the development and expansion of the cryptocurrency sector, all the while safeguarding consumers, investors, and warding off financial crime. It boasts a clear and adaptable legal framework for crypto payments, continually evolving to keep up with the shifting dynamics of the sector. Furthermore, the UK actively collaborates with international counterparts to shape global norms and best practices for crypto payments.

In the UK, crypto payments are classified as digital assets rather than currencies. Consequently, they are taxed akin to other assets, contingent upon the manner and purpose of their usage.

Crypto payments also fall under anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This requires crypto service providers to register with the Financial Conduct Authority (FCA) and adhere to specific rules and procedures.

Interestingly, a distinctive regulation exists in the UK permitting crypto payments to be used as legal tender under certain circumstances. This rule hinges on the concept of "crypto assets", which are digital tokens possessing value or rights that can be transferred, stored, or traded electronically.