The UK government will reevaluate the way it taxes stablecoins to ensure the rules accurately capture how the assets are used.
In a call for evidence, the government is seeking views on issues around the tax treatment for stablecoins, as well as any administrative burdens this might cause as the stablecoin market develops.
It said: “Stablecoins are generally treated like other cryptoassets for tax purposes. With them potentially playing a more significant role in both wholesale and retail payments in the future, the government is considering whether this treatment is appropriate going forwards, and whether it should be considering making changes.”
The government recognised that the current tax treatment of stablecoins could lead to administrative burdens that don’t apply where fiat currency equivalents are used. As there is “the strong potential use case for stablecoins in retail and wholesale payments”, alongside the price stability of stablecoins, there could be a justification for a separate tax treatment compared to other cryptoassets.
Evidence can be submitted from 26 March 2026 to 7 May 2026.
