Tax told how and why you plan to follow bitcoin transactions

Tax administration the UK called HM Revenue and Customs (HMRC) plans to spend 100 thousand pounds on the mechanism of intelligence blockchain. He will need to track cybercriminals, who often use cryptocurrencies. The structure aims to provide your team a tool to counter cybercrime, also suitable for the analysis of multiple blockchains.

It is expected that the system will support methods of intelligence gathering to identify and cluster the transaction scriptaction. Simply put: to collect information, analyze it and sort. Subsequently, such information will enable the service providers that are associated with cryptocurrencies.

The ultimate goal of the tax – the fight against tax evasion. Here is what the representative of HMRC said in a conversation with journalists resource Decrypt.

Nature of tax compliance changes, and HMRC continues to improve the experience. This allows you to react promptly to emerging threats to the tax system. Including threats, which are not cryptocurrencies.

Tax administration the UK openly hints at desire to levy taxes on income from cryptocurrency. The source of the photo: Charlie Bibby

HMRC will use the tool to bind the blockchain transactions with the real personalities of the participants in these transactions. It is worth noting that a similar functionality is already offered by some blockchain research firm. This will help to double-check whether you pay cryptodira taxes.

The IRS plans to apply the method of cluster analysis to determine which addresses belong to each owner. Theoretically it can be used to determine which service providers the user has interacted. It will also help in identifying criminals offering illegal services and goods, as well as active users of Bitcoin mixers that are confusing trail of transactions.

We will remind, the principle of cryptocurrency mixer like this: the total amount of coins the users of the service is fragmented into small portions, then they are mixed together in a random order. In the end, your coin come with the coin of other people. After a few rounds, re-mixing the money is sent to the user, but small transactions. As a result, to track the source of the translation is practically impossible.

Blackany under a sight of tax specialists

At least HMRC will track transactions in the blockchains Ethereum and Ethereum Classic. The list also got chains Bitcoin, Cash Bitcoin, Ripple, Tether and Litecoin.

Confiscation of cryptocurrency. Source: 2Биткоина

In addition, the IRS plans to work closely with the Analytics of the block chain anonymous altcoins, including Monero, zcash for and Dash. However, it is much more difficult task — the employees of Europol confirm.

We very carefully select suppliers of such services, in order to demonstrate best of experience in this industry. Most likely, it will not take much time and will not be so difficult, because now in the world there are many analytical companies, which have learned to calculate the participants of the cryptocurrency transactions.

HMRC has not yet announced any candidate for the development of the mechanism, however, it is worth noting that in this direction there are several leading companies like BlocWatch, Chainalysis and British Elliptic.

The regulation of cryptocurrencies. Source: 2Биткоина


Recently representatives of the tax authorities increasingly mention cryptocurrencies. For example, in December of holders remembered officers of the United States. Then the experts complained of the vagueness of the questions asked by the representatives of the IRS.

By the way, to experience inconvenience when paying interest income to the lovers of the coins was short-lived. In the beginning of the month it became known about the start TaxBit, which received funding in the amount of $ 5 million from Winklevoss Capital, Global Founders Capital, Dragonfly Capital Partners and Table Management. The guys want to simplify the process of paying taxes on cryptocurrencies. It will be enough to connect the program to your account on exchanges and print the document.

In our cryptodata good hontarov you will find lots of other useful information.

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