Altcoin News: UK Tax Service Requires Exchanges to Provide Customer Information

August 7, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

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 looking to work with exchanges when it comes to finding information on people who have been buying and selling crypto. I think they will only go back a couple of years, two or three 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 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.”

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:

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

Note that recently the Brazilian Tax Service ordered citizens to report cryptocurrency transactions, and the United States Internal Revenue Service (IRS) sent letters to cryptocurrency investors asking them to provide information about their income from cryptocurrency transactions.

However, in many countries, the issue of taxation of crypto assets is still open.

Author: Marko Vidrih