Taxpayers in the United Kingdom will be required to report their cryptocurrency holdings on their tax returns, according to a recent announcement made by Chancellor of the Exchequer Jeremy Hunt.

This new requirement is expected to generate an additional 10 million British pounds ($12 million) in tax revenue each year.

The change will take effect in the tax year ending in April 2025, and the U.K. Treasury confirmed that "amounts in respect of crypto assets" will need to be identified separately on self-assessment tax return forms, according to a document published on Wednesday.

Also read: Morgan Stanley: This Is Bitcoin's Moment To Shine Amid Bank Closures

The new requirement will apply to forms for capital gains taxes, which are paid when investments are sold for a profit.

Furthermore, the U.K. government has expressed interest in exploring the potential of the metaverse while taking measures to mitigate risks related to privacy, security, and other potential harms.

The government intends to maximize the benefits of this emerging technology while minimizing any negative impacts it may have.

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