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Ethereum’s Merge Could Mean ‘Big Headache’ for UK Taxman

  • UK guidelines issued in February criticized by crypto sector
  • Staking is likely to gain popularity after Ethereum’s ‘Merge’

An upgrade to the blockchain backing the world’s second-biggest cryptocurrency could trigger widespread tax confusion in the UK, potentially setting back the country’s efforts to establish itself as a crypto hub. 

After a shift known the Merge, holders of Ether can choose to lock up, or stake, their coins on the Ethereum blockchain to help validate transactions, earning yields as high as 5.2% by one estimate. That’s expected to push staking, until now the domain of more sophisticated crypto investors, into the mainstream.