Analysis for transactions with private cryptocurrencies


The UK Tax Agency (HMRC) has announced that it is interested in purchasing an analysis tool for cryptocurrency transactions. According to the announcement, the contract is worth 100,000 pounds.

The ad is addressed to any software development company in “any region” and has 21 pages of specifications. The contract will run from January 2020 to February 2021. Proposals are accepted from small and medium-sized enterprises, but not from NGOs or independent developers.

The blockchain analysis tool sought by HMRC should be able to identify participants in cryptocurrency transactions:

“Providing a tool that will support information collection methods for identifying and grouping crypto asset transactions and identifying those related to active crypto service providers”,

is mentioned in the ad.

Analysis tool for transactions with private cryptocurrencies

The tool should also de-anonymize blockchain activities by analyzing and identifying trusted ratings in clusters.

“The software must be capable of assigning a cluster / address to a known business entity (exchange) or a known service provider (mixing service, gambling, dark web, etc.)”

The platform must provide blockchain analytics visualization to identify suspects using cryptocurrencies. The tool must support blockchains such as BTC, BCH, ETH, ETC, XRP, USDT and LTC.

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The HMRC announcement emphasizes that the ability to manage private cryptocurrencies such as monero, dash and and zcash is an advantage. Also, the contractor should provide secondary training so that other government employees learn how to use the blockchain analysis tool.

The developer responsible for building the blockchain analysis tool will be paid through the dedicated Ariba payment portal of HMRC.

The HMRC’s recently updated fiscal recommendations regarding crypto-related activities note that most crypto-asset transactions are “taxable economic activity”. The announcement shows that the agency is seriously monitoring the activities of this type.