British Tax Authority Demands User Data From Crypto Exchanges

News | August 7, 2019 By:

Her Majesty’s Revenue & Customs (HMRC), the UK’s tax, payments and customs authority, is reportedly asking crypto exchanges to provide the names and transaction histories of their customers in order to track down unpaid taxes.

Coindesk reported that the HMRC has sent letters requesting the information to at least three exchanges active in the UK, including Coinbase, eToro and CEX.IO.

“HMRC is looking to work with exchanges when it comes to finding information on people who have been buying and selling crypto,” said one industry insider.

The industry insider added that it would be very difficult to provide ten years’ worth of information for any platform, which is why the agency will probably only go back two or three years.

“If they 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 source said. “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.”

While the HMRC declined to go into detail, the agency confirmed that such requests are within the scope of its competence.

“These exchanges can retain information on their clients and the transactions that they have completed,” the agency said. “These transactions may result in potential tax charges and HMRC has the power to issue notices requiring exchanges to provide this information.”

The news came after the US Internal Revenue Services (IRS) announced that it was considering to require tech giants, such as Apple, Google, and Microsoft, to report crypto-related activities of its users.