UK Tax Agency Targets Evaders Through User Data from Major Crypto Exchanges

Her Majesty’s Revenue and Customs (HMRC), the United Kingdom’s non-ministerial depart for taxes and customs, is requesting information from cryptocurrency exchanges, in its fight against tax evasion.  The HMRC is requesting for information including names of users and other specific information regarding transactions.

Exchanges to Part with Information

Reports have it that the HRMC has already reached out to three of the major cryptocurrency exchange firms in the U.K. for a full list and other information. The exchanges reportedly contacted already include Coinbase, eToro and CEX.io.

The agency, it has been said, is looking to fish out tax evaders and will only need information from about three years ago. According to an unnamed source:

“If they [HMRC] do only go back two or three years, I think the interesting thing here is, that the individuals who went into crypto very early on in 2012-13 will not be affected. The ones who probably made the largest gains won’t be affected, it will be the people who came in around the time crypto peaked.”

This move is in line with tax regulations guidelines published by the agency in December 2018, which specifies that cryptocurrency holders pay the Income Tax or Capital Gains Tax, to be determined by the specific virtual currency they hold or use.

Regulatory Agencies are Biting

Recently, the IRS in the United States began sending a total of 10,000 letters to crypto investors all over the country, requesting various actions to be taking regarding tax filings, including the payment of back taxes. Also, in line with the Department of Federal Revenue, Brazilians are mandated to file crypto transactions with the agency.