The IRS understands cryptocurrency (or cryptocurrency) as a cryptographically secure digital representation of value or contractual rights that can be transferred, stored, and traded electronically. HMRC does not consider cryptocurrencies to be currency or money.
Types of tokens in UK
Payment tokens are intended to be used as a payment method. Unlike product tokens or securities, they do not provide any rights or access to goods or services. Product tokens grant the holder the right to receive certain goods or services on a platform typically using DLT (distributed book technology). The business typically issues such tokens and undertakes to accept them in the course of its business as payment for specific goods or services (for example, tokens for online stores that will be counted as a discount). Token securities may grant their holder special rights, such as a share of profits in a business.