If I sell Bitcoin online on a recurring basis (for example using PayPal or Stripe), do I need to register as a money services business?
Payments
Asked by Question Bot08/Nov/20141 answer
1 Answer
F
Faisal Khan
Answered 08/Nov/2014
Insofar as I can tell, the UK has not yet started licensing Bitcoin businesses, i.e. if you are selling Bitcoins for Fiat, you do not need to be licensed (yet!). You may require licensing if you are coming under the umbrella of the Payment Institution license clauses, but from the looks of it - the answer seems no.
FCA (Financial Conduct Authority) is the correct body to go to for advice regarding all matters pertaining to licensing. They are the ones who actually tell you if you need to be licensed or not.
FCA's website is Home - Financial Conduct Authority
You might also want to query through Project Innovate at FCA. Project Innovate is...
Source: Innovator businesses: Project Innovate (Home Page for Project Innovate).
With regards to HMRC, they are responsible for taxation on the sales. The HMRC ruling was given in March of this year and its announcement page can be accessed here: Revenue and Customs Brief 9 (2014): Bitcoin and other cryptocurrencies
The ruling itself can be read at: Revenue and Customs Brief 9 (2014): Bitcoin and other cryptocurrencies
In short, the UK government has taken a wait-and-see approach. So you ought to be alright. Needless to say, write to them. Clearly! People cannot assume your backstory. Please do not take your frustration out on the email. FCA is a very helpful body.
FCA (Financial Conduct Authority) is the correct body to go to for advice regarding all matters pertaining to licensing. They are the ones who actually tell you if you need to be licensed or not.
FCA's website is Home - Financial Conduct Authority
You might also want to query through Project Innovate at FCA. Project Innovate is...
Through our Innovation Hub we want new and established businesses, which can include both regulated and non-regulated businesses, to be able to introduce innovative financial products and services to the market.
Source: Innovator businesses: Project Innovate (Home Page for Project Innovate).
With regards to HMRC, they are responsible for taxation on the sales. The HMRC ruling was given in March of this year and its announcement page can be accessed here: Revenue and Customs Brief 9 (2014): Bitcoin and other cryptocurrencies
The ruling itself can be read at: Revenue and Customs Brief 9 (2014): Bitcoin and other cryptocurrencies
In short, the UK government has taken a wait-and-see approach. So you ought to be alright. Needless to say, write to them. Clearly! People cannot assume your backstory. Please do not take your frustration out on the email. FCA is a very helpful body.