Bloomberg Tax
Dec. 19, 2018, 9:30 AM

U.K. Crypto Traders Can Use Losses to Offset Profits, Reduce Tax

Hamza Ali
Hamza Ali
Senior Reporter International Tax

The U.K. will allow cryptocurrency traders to use losses from trading to offset future profits, a boost to an industry that faced substantial losses in 2018.

By offsetting profits, traders would be able to reduce their income tax liability. The guidance, released Dec. 19, narrowly defines who can qualify as a cryptocurrency trader, making the impact of the provision potentially narrow.

The 100 largest cryptocurrencies, by market capitalization, have fallen from a high of $830 billion in January to $137 billion as of Dec. 18, according data provider CoinMarketCap.

Bitcoin, the most widely traded cryptocurrency, peaked on ...

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