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The United Kingdom will track transactions made with Bitcoin, Ethereum and other cryptocurrencies


The UK government has shown interest in tracking cryptocurrency transactions in the country through a document published by the UK tax authority, HM Revenue and Customs (HMRC), on January 17.

The contract will last one year and will pay £ 100,000 (around R $ 550,000) to any person who provides a tool that allows the taxpayer of the country to identify and group cryptocurrency transactions in linked transactions, in addition to identifying transactions linked to suppliers of cryptographic services

Required Requirements

There are several requirements requested by the UK regulator. The tool provider must offer a platform to interpret cryptocurrency block chains. In addition, it must be able to eliminate anonymity by identifying transactions by analyzing clusters and also determining the reliability of these clusters. These groups / addresses should also be assigned to known business entities or service providers.

The HMRC also wants the provider to track any transaction or holder of the following cryptocurrencies: Ethereum, Ethereum Classic, Bitcoin, Bitcoin Cash, Ripple, Tether, Litecoin, as well as plans to track privacy currencies such as Monero, Dash and Zcash in the future .

One of the main expected results is the investigation of the use of cryptography in criminal activities against the regulator. About this, the entity declares:

“These services (cryptocurrencies) are increasingly used for a variety of purposes, from international money transfers, sales of digital services, staff payment and tax evasion and money laundering. (…) Although the transactions are usually public, the participants who carry them out are not «.

Other HMRC initiatives

In November 2019, HMRC updated its cryptocurrency tax guidelines for businesses and individuals. At that time, the tax authority explicitly stated that it does not consider any of the current types of cryptocurrencies as money or currency.

Previously, in August of the same year, the entity sent letters to at least three exchanges operating in the country requesting the preparation of customer lists and transaction data to combat tax evasion cases in the United Kingdom.

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