UK Includes Crypto Assets in Financial Services Reform Package

The UK government today announced a package of more than 30 reforms to financial regulation, including the extension of tax breaks for investment managers to cover crypto assets. Dubbed the “Edinburgh Reforms,” the measures are designed to replace EU regulation. The announced measures include publishing a formal response to the consultation on expanding the Investment Manager Exemption to cover crypto assets, which will facilitate their inclusion in the portfolios of overseas funds managed in Great Britain without creating a risk of UK taxation. Treasury include setting up a financial market infrastructure sandbox next year.