What are Cryptoassets?
HMRC do not consider cryptoassets such as Bitcoin and Ethereum to be currency or money. The government’s Cryptoasset Taskforce (CATF) identifies three types of cryptoassets: exchange tokens, utility tokens and security tokens.
- Exchange tokens – these are intended to be used as a method of payment and include cryptocurrencies like Bitcoin and Litecoin. They do not provide any rights or access to goods or services.
- Utility tokens - these provide the holder with access to particular goods or services on a platform usually using Distributed Ledger Technology (DLT).
- Security tokens - these may provide the holder with particular interests in a business, including debt due by the business or a share of profits in the business.