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 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.