The United Kingdom is a unique combination of age-old traditions and highly developed modernity. Thus, the state’s financial regulator seeks to create a favorable environment for the development of cryptocurrencies and create a new digital economy. In this article, you’ll learn whether it’s legal for UK-based businesses to accept crypto payments, whether the game is worth the candle, and how to start accepting bitcoin payments in minutes.
key points:
It is legal to accept crypto payments in the United Kingdom. Some UK-based companies have been accepting BTC for payment for several years. After weighing all the pros and cons, you can use Nowpayments services to accept bitcoin payments. Is bitcoin legal in the United Kingdom?
Let’s summarize “Yes!” Reply to Although, at this time, the United Kingdom does not recognize cryptocurrencies as a currency, but classifies them as “crypto assets”, the UK is favorable to crypto businesses. UK residents can legally trade, invest and accept bitcoin and other cryptocurrencies for payment.
For taxation, HM Revenue and Customs (HMRC) indicates that each case of taxation is considered individually. Depending on the circumstances, transactions with cryptocurrency may be subject to income tax or capital gains tax. It is also worth noting that the UK is preparing to adopt the UK Financial Services and Markets Bill (FSMB) in the spring of 2023. The bill aims to regulate cryptocurrencies and stablecoins, and if passed, would mark significant progress in creating a regulator for the UK. Framework for digital currencies.
What can you buy with bitcoin in the UK?
Today, many companies in the UK accept cryptocurrency as one of the methods of payment online and even offline. Therefore, with the help of bitcoins, you can provide yourself with almost everything, from coffee, pizza, clothes, cosmetics, and ending with air tickets, cars and even a mansion.
Here are some examples of crypto-friendly companies:
CEX. A large UK-based electronics retailer accepts bitcoin as a means of payment online and in many of its brick-and-mortar stores. You can easily buy a new game, phone, laptop and much more with bitcoin by visiting one of them. Magnificent Cosmetics. Lush, a well-known brand of handmade natural cosmetics, also allows you to pay for goods with BTC thanks to a collaboration with the BitPay crypto payment processor. Girl Meets Dress. Europe’s largest designer dress rental service allows women to look fabulous without spending a dime. One of the best UK-based hosting providers has also kept up with the times and accepts bitcoin payments. CheapAir. The well-known travel agency CheapAir provides its customers with many great offers and allows them to spend bitcoins on air tickets and accommodation. What are the Pros and Cons of Bitcoin Payments?
There are two sides to every bitcoin, so before making a decision to accept bitcoin payments, it is necessary to weigh all the pros and cons.
Pros:
Low fees Bitcoin transactions do not require as many intermediaries as in the case of bank transfers. Thanks to this, the fees have come down significantly. High transaction speed. While praising the decentralized nature of cryptocurrencies, it is worth noting that due to the absence of many intermediaries, payments are processed within minutes, regardless of the location of the sender and receiver. Expansion of user base. If you’ve already established high-quality international delivery, but are still racking your brains, “Why are there so few customers?” You should definitely expand on the available payment methods. More and more shoppers are willing to pay with cryptocurrency and shop in crypto-friendly stores. Shortcoming:
instability. In 2021, bitcoin made its new all-time high and crossed the $68k mark (according to CoinMarketCap). However, there was a sharp decline later. Such price fluctuations are not new to the crypto market, and opening the BTC price chart, you can see that each drop is followed by an even higher rise. However, if you are a follower of more stability, then perhaps you should pay attention to stablecoins. Hackers. Unfortunately, due to the weak regulation of cryptocurrencies, you are unlikely to be able to recover losses if hackers steal your funds. Therefore, by accepting crypto payments, you also accept all associated risks. How to accept bitcoin payments in the UK?
UK residents can use NowPayments solutions designed to accept over 150 cryptocurrencies for payments. To accept crypto payments, follow the instructions below:
Create your Now Payments account. Specify and verify your email address. Go to the “Payment Settings” section to specify your crypto payout address and generate a new API key.
Go to “Payment Tools” >> “Payment Link” section and click on “Create Payment Link”. Fill out the form. Specify the crypto in which you want to receive payment, the item price in USD and other details.
Copy your payment link and send it directly to buyers or post it on your website. conclusion
The UK is one of the best destinations for business owners because of the impressive development of the banking, financial and IT sectors of the national economy. UK residents can start accepting cryptocurrency using NowPayments by registering a free account.
