By arguing that crypto-assets “provide no income” John Plender (FT Money, FT Weekend, January 8) is not on the same page as HM Revenue & Customs.
The British taxman is only too pleased to regard the input rewards of about 5 to 15 per cent offered by some coins as taxable income.
These rewards are a payment to help operate blockchains, and are in some respects analogous to the dividends paid to shareholders in banks or credit card companies.
Of course, cryptocurrencies’ prices are highly volatile, but the significant income they can generate is one of the reasons why they can offer potential in an inflationary environment.
Board Member, Bitcoin Suisse,
London W8, United Kingdom