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- 1 Crypto regulators are trying to keep risks associated with crypto at bay.
- 2 Digital assets are subject to a variety of taxes in different nations.
The recent crypto crash has made it harder for the sector to survive in the global financial ecosystem. Not just virtual currencies but the whole economy is in turmoil. The scenario is forcing regulators to take control of the situation by implementing more regulation on the cryptocurrency sector. Recently, the United Kingdom authorities announced forthcoming regulations on digital assets in the country.
More Crypto Regulations To Come in the UK
The UK government highlighted in the Spring Budget 2023 that they are bringing amendments to Self Assessment tax returns associated with cryptocurrencies. The changes may take place in the tax year 2024-25. Crypto assets are taxable in several countries, including the US, Italy, and Germany.
Crypto is subject to 0-37% capital gain tax in the US. It is noteworthy that the country is currently the biggest market for the digital asset market. Italy considers virtual currencies a financial instrument, and citizens must report their total crypto holdings to the concerned authorities. In Portugal, passive user income from these assets is taxed at 28%.
The Spring Budget 2023 also mentions the Metaverse as the future of web technology. UK authorities plan to empower people to influence how their data is utilized. On top of that, they are considering managing the potential risks this sector may bring. Countries like the United Arab Emirates (UAE) and South Korea have already launched initiatives associated with the metaverse.
The Dubai Metaverse Strategy is focused on making the location one of the ten biggest metaverse economies. They plan on attracting over 1,000 companies through the initiative and support the nation’s ambition to generate more than 40,000 jobs in the metaverse by 2030. On the other hand, South Korea released Metaverse Seoul, a digital replica of the city, in January 2023.
The metaverse will need state-of-the-art technologies like 6G, graphic processors, the internet of things, and more to stay intact. Several companies around the globe have been making moves in the metaverse. Microsoft acquired Activision Blizzard in January 2022, stating that the deal would help push the metaverse development.
Meta and Apple are running the virtual reality race where the former’s run has temporarily stopped. Meanwhile, the latter is speculated to announce their VR headsets at some point this year. The metaverse sector still has a long journey before entering the mainstream.
It is uncertain when we will see virtual worlds coming to life, but they will undoubtedly push the digital economy when integrated with cryptocurrencies.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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