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UK Resident? Find out if you owe tax on crypto




On Wednesday 21 August, eToro UK, HMRC and ICAEW held a webinar on the tax treatment of cryptoassets for individuals, the crypto landscape and the future of crypto.


A number of questions were submitted during the Q&A which have been collated and answered below.


Q: What if your broker does not supply the information in GBP?

A: Your broker will supply information in a fiat currency. If it does not supply information in GBP, it is up to the individual to convert this to GBP which can be done on numerous websites, such as the Financial Times’ currency converter. Find out if you could owe tax using eToro’s crypto tax calculator.

Q. Can CFD transactions on crypto be included and how far back can you claim Capital Gains Tax losses on crypto?

A: Yes, CFD transactions are included and you can claim up to four years back, however you must claim the loss as part of your tax return.

Q: Do I need to keep track of all the transactions I have made?

A: It is advised that customers keep a record of all transactions. The onus is on the individual to keep a record.

Q: Is there an age restriction when it comes to paying taxes?

A: No. You are liable for taxes at any age.

Q: Will eToro provide statements by tax year?

A: Yes.To access your statements:

1. Login to your eToro account and click Portfolio (on the left-hand navigation bar)

2. Select History (the small clock icon)

3. Click the Settings icon (the small cog) on the right-hand side of the page and select Account Statement

4. Change the start date and end date to the start and end of the tax year, you will receive all statements for this period

Q: Are token wallets secure?

A: Yes.

Q: What information does eToro provide to HMRC, and how often?

A: eToro has tax compliance and regulatory responsibility to HMRC on an annual basis, as with all brokers and exchanges.

Q: What exchange rate can we use as we are trading in USD on eToro?

A: It is up to the individual to calculate the exchange rate on the day of disposal. You can do this on Financial Times’ currency converter.

Q: As trades are in USD, will eToro add the option to choose local currency in report settings and include these amounts in the downloadable reports based on the exchange rate at the time of purchase and disposal?

A: eToro will continue to report in USD. It is up to the individual to find out the exchange rate at the time of purchase and disposal.

Q: Will eToro build some kind of automated tax reporting feature into the system?

A: eToro is execution only and does not provide tax advice nor reporting. We highly recommend that you seek professional advice when it comes to calculating tax.

To help customers understand tax and if you might owe tax, we have created a tax calculator which allows you to input all crypto transactions, calculate gains and losses, and export to a CSV.

Q. Is it mandatory to report your investments to HMRC even if there was no profit made?

A: No, your tax obligation is only on disposal. It is up to the individual to calculate any gains or losses made through crypto trades.

Q: I assume eToro has a record of all these transactions, so why would we need to do it?

A: eToro retains a record of these transactions, however eToro is execution only. That means we execute trades only and do not calculate tax nor provide tax advice. It is up to the individual to calculate gains or losses on crypto.

Q: Am I liable for tax when I buy crypto with GBP and sell for USD?

A: Yes, we recommend you seek advice from a professional to calculate any gains or losses on your trades. eToro has created a crypto tax calculator to help customers understand if they might owe tax.

Q: What do you do if you haven’t kept the details of the exchange transaction between cryptocurrencies?

A: You should be able to ask your exchange or broker for your transaction history.

Q: What if I do not know the value of the pound at the time you traded your cryptoassets in the past? What value would you use as reference? Is there a website?

A: A number of websites will provide historical value on GBP, i.e. Financial Times’ currency converter. To understand if you might owe tax, use our crypto tax calculator.

Q: Do we need to pay taxes on every crypto that we buy or sell on eToro, even if it’s a CFD?

A: Yes, you could owe tax on all crypto trades whether that is an investment in the underlying asset or a leveraged product.

Q: When trading cryptos, you might have few trades a day between cryptos, how do we record these losses / gains? Should I rely on my broker or exchange to produce a report of such activity?

A: Your broker or exchange should keep a record of all your trades. It is up to the individual to calculate gains or losses on crypto trades.

Q: What is our tax liability towards CFDs?

A: Please seek advice.

Q: As the assets are virtual, how secure are they?

A: The assets are secured in the blockchain using cryptography.

Q: I am a Spanish national using EUR from a Spanish account on eToro. I live, work and pay taxes in the UK. I am a full-time teacher.

I have bought bitcoin on eToro, which I am still playing with. Would I pay tax in the UK? Do I pay when I finish and put that money into a UK account (in GBP) and do I pay even if I intend to put this money back into my Spanish account?

A: Please seek advice.

Q: Are profits made on CFD taxable?

A: Yes, realised gains made on CFD products are liable for tax.

Q: Are exchange fees deductible from trade profits / loss?

A: Please seek advice.

 Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk CFDs work, and whether you can afford to take the high risk of losing your money.

Applies to UK taxpayers only.

The information above does not constitute financial advice, always speak to a tax professional to ensure it is right for your specific circumstances.

eToro does not represent any government entity. You should check with a tax professional or HMRC if you are paying the right amount of tax.


GoodDollar presents Decentralised Cryptocurrency at OECD Blockchain Policy Forum





Yoni Assia, Chief Executive of multi-asset trading platform eToro, took the stage at the second Global Blockchain Policy Forum, recently hosted by the Organisation for Economic Co-operation and Development (OECD), to present the not-for-profit GoodDollar project.

The blockchain ecosystem is moving fast with pressure on governments and institutions to keep abreast of the latest innovations. At the prestigious event, held in Paris, the OECD gathered industry leaders together for the second year in a row to discuss the hype around cryptocurrencies and the possibilities that the technology brings to make social impact and lasting change.

Mr Assia told delegates that GoodDollar is launching a decentralised cryptocurrency – also called GoodDollar, or G$ – powered by blockchain, in a bid to reduce global wealth inequality and “fix one of the biggest problems in the world”.

“Today, 94 per cent of the wealth in the world is actually held by the top 20 per cent,” he said. “An even more mind-blowing number is that the richest 26 people in the world have more wealth than the lower 3.8 billion.”

“A lot of very smart and very wealthy people understand that this is a big issue and they understand the responsibility of the elite, or top percentiles, to make sure that we fix this problem before it becomes too significant.”

Mr Assia explained that because of the development of cryptocurrencies and blockchain…

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eToro’s new open-source programming language is first step in bringing $500 trillion OTC derivatives market onto the Blockchain





-Lira is first project born out of eToro’s acquisition of smart contract company, Firmo, earlier this year –

eToro, the global multi-asset investment company, has today released the details of Lira, a new open-source programming language for financial contracts. Lira is the first step in bringing the $500 trillion OTC derivatives market onto the Blockchain by introducing a new formal contract language.(i)

Lira is a domain-specific language that can be used to write OTC financial contracts for assets currently on the Ethereum blockchain. It is both secure and easy to programme whilst guaranteeing self-executing global settlement and automated trade reporting and monitoring. It’s easy tracking and compression will enable better collateral requirement efficiencies. Furthermore, it is the first decentralised finance (DeFi) project that will look to expand the code across different blockchains now that it is open-sourced.

Yoni Assia, CEO and Co-Founder of eToro, commented: “Bringing the OTC derivatives market onto the blockchain will bring more transparency and capital efficiencies to the industry. Activities in the post-trade cycle, such as settlement and the clearing of derivatives, are both expensive and a source of systemic risk. We believe that blockchain technology can provide a secure execution environment in which settlement is guaranteed by design. That is why today we are introducing a new formal contract language – Lira. This has the potential to open up and transform the derivatives market.”


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eToroX launches new professional API trading program





AlgoX Prime API introduced by blockchain subsidiary of eToro  

11 September 2019: eToroX, the blockchain subsidiary of global investment platform eToro, today announced the launch of its institutional-grade API trading programme, AlgoX Prime.

AlgoX Prime is the top-tier API program of eToroX Exchange, the eToro Group’s regulated and secure cryptoasset exchange. Employing the deep liquidity of eToro, tight spreads, and bespoke capabilities for cryptoasset trading, AlgoX Prime is carefully tailored to suit the needs and requirements of institutional-grade algorithmic traders from both the traditional and crypto spheres.

The program offers highly competitive fees, a free enterprise-grade market data package, and a high-quality, low-latency colocation service that incorporates professional-level connectivity, enabling direct access to eToroX’s dedicated, high-security data centre. The continuous and ongoing rollout will include an ever-expanding list of cryptoassets, increased volume from eToro, and much more.

From the Consensus invest:Asia event in Singapore, Doron Rosenblum, eToroX Managing Director, said “AlgoX Prime, our new API trading program, offers sophisticated trading capabilities to institutional and corporate traders. We believe that it will open the door for institutional traditional financial algo trading companies to trade cryptoassets, and by doing so, greatly increase market liquidity.” 

“The AlgoX Prime trading program aligns with eToro’s strategy of bridging the gap between blockchain and the traditional financial markets,” saidYoni Assia, CEO of eToro. “The ability to trade on eToroX using APIs will help…

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