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Buying LBRY Credits (LBC) / Crypto Discussion

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gary_01:
Is anyone in the UK using LBRY? I was reading up on it earlier and it seems it has some odd interactions with UK tax laws.

It sounds reasonably sane as far as receiving LBC counts as income based on market value at time of receipt and buying/selling is subject to capital gains.

Where it gets weird though is, gifting or buying something with LBC counts as asset disposal, so you might be libel for capital gains.


--- Quote ---If tokens are given away to another person who is not a spouse or civil partner, the individual must work out the pound sterling value of what has been given away. For Capital Gains Tax purposes, the individual is treated as having received that amount of pound sterling even if they did not actually receive anything.
--- End quote ---

Section on gifting: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22100

So, if Dave was in the UK rather than Aus land and LBC hit $1 and he decided to just go tip crazy and give away his 100k founders coins in tips to creators, unless I've misunderstood (and that wouldn't surprise me given I've only just started reading up on this today), that'd be treated as disposal and despite receiving nothing in return, would be subject to capital gains tax.  :scared: I suppose you'd have to first sell a chunk to then use that sale to cover the CG you'd be due on the amount you tipped.  :phew: That is, assuming you knew about this ahead of time  :scared:

If the above is accurate, it really makes it sound like LBRY is fine if you're a creator in the UK and using it to receive income + pay CGT when you sell your received coins, but as a regular user who might have LBC and use it to tip, it could be quite a headache if you also have other sources of CG. Not so much due to tax payments, I'd expect the impact there would be small, but the headache of having to track every transaction and the market value/pooling/related information in order to determine CG and any reporting. Just sounds like a pita.

If only LBC was treated as a currency rather than asset :(

Link to full info if anyone is from the UK https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual

EEVblog:
FYI, CoinEx stopped working about 7 days ago with the LBC wallet "under maintenance", and one of my transaction has been stock on 205/300 confirmations for that time. No response from CoinEx
Avoid them for now until it's resolved.

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