HMRC’s bid to claw back taxes on cryptocurrencies demonstrates that digital assets are the future of money, claims the head of one of the world’s largest financial advisors.
Nigel Green, chief executive of deVere Group, delivered his assessment after it was revealed that the UK’s HM Revenue & Customs was asking cryptocurrency exchanges to reveal customers’ names and transaction histories in a bid to recover unpaid taxes.
“This move by the UK’s tax authority cannot be viewed as anything other than another clear sign that cryptocurrencies like Bitcoin, Ethereum, and XRP are not only part of mainstream finance, but also the future of money,” he observed.
“There is a continual and increasingly rapid slew of indicators that digital currencies are gaining traction in our increasingly digitalised world – much to the chagrin of financial traditionalists like Warren Buffett and Donald Trump.
“For instance, financial regulators around the world are preparing and looking to implement regulatory guidelines for cryptocurrencies in order to keep pace with countries like Japan, Malta, Switzerland, and South Korea, which already have pro-crypto policies.”
To provide further evidence, the CEO pointed to the fact that many of the world’s major financial institutions were preparing to establish crypto desks.
“A growing number of retail and institutional investors are piling into the crypto sector market,” he added.
“Tech giants, like Facebook, are planning to launch their own cryptocurrency – and where Facebook goes other tech monoliths will follow.
“And just this week, China’s central bank, which oversees the world’s second-largest economy, has revealed it will soon launch its own state-backed cryptocurrency following five years of research.”
When Donald Trump laid into Bitcoin as being worthless and “based on thin air” last month, deVere’s immediately said the US president had “placed himself on the wrong side of history”.
“Standing on the sidelines or, worse, looking backwards on the issue of cryptocurrencies – which are redefining and reshaping the financial system – is a baffling approach for the leader of the world’s largest economy to take,” said Mr Green.
“HMRC’s growing interest in cryptocurrencies underscores that their public influence and appeal is growing.”