Payments , Cryptocurrencies 03:47 pm
On March 30 2021, Her Majesty’s Revenue and Customs released guidance specifically describing how crypto digital asset staking should be treated for taxation purposes. It has been assumed previously that staking comes under the umbrella of mining, thus the same guidance has applied.
This supports the case that crypto staking displays similar characteristics to royalty finance. Inc.com encyclopedia defines royalty finance as a relatively new concept that offers an alternative to regular debt financing (loans and trade credit) and equity financing (venture capital and stock sales). In a royalty financing arrangement, a business receives a specific amount of money from an investor or group of investors.