The UK tax authority, Her Majesty’s Revenue and Customs (HMRC,) is collecting customer data from the local and foreign cryptocurrency exchanges under the Freedom of Information Act.
- Recently, the tax authority started stamping out on exchanges in the UK, using the statutory powers to get information about the platforms’ clients.
- The cryptocurrency assets are classified as personal investments in the UK, and any profits are subject to taxation. Crypto received from mining and as payment for services also incurs a tax charge.
- In March, the tax authority amended its tax advice to include cryptocurrency staking, which is treated in the same way as mining.
- The financial regulators remain cautious of embracing cryptocurrencies, which analysts say reflects issues about the industry’s ability to enforce compliance.
HMRC confirmed that the collected personal data, including names and addresses, is about customers who are both one-time and regular cryptocurrency exchange users.
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