What are Cryptoassets?

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Over the past few years, there has been an increase in customers buying goods and services using digital platforms and this has accelerated during the pandemic. This article will cover exactly what cryptoassets are and the tax treatment, in the UK, for both individuals and businesses.


Cryptoassets, also known as ‘tokens’ or ‘cryptocurrencies’, are cryptographically secured digital representations of value or contractual rights that can be:-

Transferred
Stored
Traded electronically
There are numerous types of cryptoassets and they each work in different ways. The main mexico mobile database 4 types of cryptoasset that you may encounter are as follows:

Exchange tokens – Intended to be used as a means of payment and this includes the most well-known token, the bitcoin.
Utility tokens – This provides the holder with access to particular goods or services on a platform. This is usually where a business will issue tokens and commit to accepting the tokens as payment for particular goods or services.
Security tokens – This provides the holder with particular rights or interests in a business, such as ownership or entitlement to a share in future profits.
Stable coins – These tokens minimise volatility as they are aligned to something that is considered to have a stable value, such as precious metals.