HMRC: Cracks down on crypto investors

HMRC: Cracks down on crypto investors

HMRC: Cracking down on possible tax evasion by asking cryptocurrency exchanges

  • The tax authority has written to at least three exchanges operating in the UK Coinbase, eToro and CEX.IO
  • HMRC defines a taxable event as users selling their cryptocurrencies or swapping them for other digital assets
  • Holders are liable to pay Capital Gains Tax on crypto in the UK
  • The tax authority withheld details about its requests, but confirmed to CoinDesk
  • These exchanges can retain information on their clients and the transactions that they have completed
  • HMRC’s move follows action taken by the US Internal Revenue Service (IRS) last month