UK’s tax authority finding solution to address crypto cybercriminals
HM Revenue and Customs (HMRC), the U.K’s. the tax authority is looking to launch a blockchain investigation device that could assist it with recognizing cybercriminals exchanging in digital currency.
According to the Public Technology press, the tax office is in need of analyzing digital money exchanges such as Bitcoin and Ethereum, which are being utilized for tax avoidance and money-laundering.
Particularly, HMRC is looking for a solution that could help track 7 digital assets, including Bitcoin (BTC), Bitcoin Cash (BTC), Ethereum (ETH), Ether Classic (ETC), XRP, Litecoin (LTC) and Tether (USDT) stablecoin. And HMRC also wants to track privacy-oriented coins such as Monero (XMR), Zcash (ZEC), and Dash (DASH).
It is clear that the tax agency is eager to find the way when spending £100,000 ($130,000) toward licensing for the chosen tool. It is receiving suggestions from potential suppliers until January 31 and starting a contract on February 17. Some potential suppliers can list are blockchain analytics firms Chainalysis, Elliptic and CipherTrace. For example, U.K.-based Elliptic recently discovered over $400 million worth of XRP transactions related to illegal exchanges such as scams and Ponzi schemes.
HMRC shared that crypto-asset exchanges are recorded publicly as people know is blockchain, but the participants undertaking those transactions are not.
Therefore, it is necessary to seek for a tool that will provide intelligence-gathering solutions to identify and cluster crypto-asset transactions into linked transactions, and identify those linked to crypto-asset service providers.
In August 2019, HMRC was also demanding customer and transaction information from crypto exchanges Coinbase, eToro, and CEX.IO. The tax agency stated that these transactions might result in potential tax charges and the agency had the right to require these exchanges to provide information.