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HMRC demands customer data from UK licensed crypto companies

UK tax regulation requesting data

The HM Revenue and Customers, United Kingdom tax agency has sent out official letters to several cryptocurrency exchanges based in the country to immediately provide customer transaction information.

The companies that received these letters are reported to be Coinbase, eToro, and CEX.IO, but it’s not clear whether or not more entities will be requested to provide the data.

The data requested are names and the recent history of processed transactions of almost all customers. The HMRC states that the requested information is based on the fact that these transactions could classify as taxable income and therefore fall directly under the UK regulation.

Although on the surface it seems unlawful to request this information from crypto exchanges, it’s important to note that the UK regulation does have a section where it indicates the responsibility of crypto companies to be transparent with their data once requested from the regulators.

Judging by the fact that the HMRC is an indirect branch of the FCA, the actions of the agency are completely legitimate.

This news also comes in the wake of the IRS sending out letters to crypto investors to classify their income as taxable.

Giorgi Mikhelidze

Giorgi Mikhelidze

Georgian-born blockchain enthusiast Giorgi leverages his software development background for on point market commentary and analysis. A brief stint with Finance Makers and he's now covering crypto news for high authority websites with the tip learned from past experience, "Whenever you see people talking about the weakness of your idea, don't see it as criticism."

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