UK Tax Service requires exchanges to provide customer information

The Royal British Customs and Customs Service (HMRC) requires cryptocurrency exchanges to provide customer data and transaction history in order to identify tax evaders.

According to unnamed sources, over the past couple of weeks, letters requesting customer lists and transaction information have been sent to at least three exchanges doing business in the UK – Coinbase, eToro and CEX.IO.

“HMRC is committed to working with exchanges when it comes to finding information about people who buy and sell crypto assets. I think they are interested in information about transactions over the past couple of years, ”said one of the industry representatives.

The source also noted that for any platform it would be difficult to provide information for ten years. He added:

“If the tax authorities can get information over the past couple of years, I think that people who came to the industry at its dawn in 2012-2013 will not be affected. Those who have achieved the greatest successes will not be subjected to tax prosecution – those who came to the market at the peak of its popularity will face it. ”

The HMRC said it did not disclose details of its information requirements, as this could jeopardize tax assessment or collection. However, the agency confirmed that such requirements are within its competence, stating:

“Exchanges can store information about their customers and the transactions they completed. These transactions may result in potential tax levies, and HMRC has the right to issue notifications requiring exchanges to provide this information. ”

We note that recently the Brazilian Tax Service ordered citizens to report cryptocurrency transactions, while the United States Internal Revenue Service (IRS) sent cryptocurrency investors letters requesting information about their income from operations with cryptocurrencies.

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However, in many countries the issue of taxation of crypto assets is still open. At the end of last month, the Bar Association of Russia only discussed the taxation of cryptocurrencies.