UK Plans to Use Blockchain Analytics Tool to Catch Crypto Cybercriminals


British tax authority HMRC is looking to implement a blockchain analytics tool to catch crypto cybercriminals. HMRC wants to track cryptocurrency transactions, including BTC, ETH and XRP. Moreover, the tax agency is ready to spend £ 100,000 ($130,000) for licensing the analysis tool.

21 January, 2020 | AtoZ Markets – UK tax and customs authority, HM Revenue and Customs (HMRC) is reportedly looking to invest in a “crypto-asset blockchain analytics tool.” The tool could identify criminals who are indulging in trading in Bitcoin or other cryptocurrencies. Moreover, the tool can allow its FIS-DSI Cybercrime team to analyze blockchain cryptocurrency transactions.

UK’s HMRC Seeks to Catch Crypto Cybercriminals

The threat of cyber-criminals who leverage crypto to evade taxes and money laundering is growing. However, the tax authority is looking to track transactions and value fluctuations in Ethereum and Ethereum Classic, Bitcoin and Bitcoin Cash, Ripple, Tether and Litecoin. The authority would also prefer a product that can develop the ability to track privacy coins such as Monero, Zcash and Dash.

Many of these crypto-asset transactions are publicly recorded in a ledger known as the blockchain. While the transactions are typically public, the participants making them are not.

HMRC’s contract value for the tool indicated in £100k or $1,29,975. The proposals from potential suppliers are invited until 31 January. A scheduled contract will start on 17 February. The official notice read:

“Providing a tool that supports intelligence collection methods to identify and cluster Crypto-asset transactions into linked transactions. However, it will identify those related to Cryptoasset service providers.”

Moreover, the HMRC stated:

“The successful service provider must have competent people, adequate resources and deep experience. Critically, we will look for suppliers who demonstrate their skills by demonstrating their expertise in the field of crypto-asset tracking.”

Read More: South Korea May Impose 20% Crypto Income Tax

HMRC Is Moving Its Magnifying Glass Over Cryptocurrency Exchanges 

Last August, HMRC also requested customers’ data from crypto exchanges Coinbase, eToro and CEX.IO. The tax agency had sent letters to these exchanges asking for customer names and transaction history. It stated that “these transactions might entail potential tax charges. HMRC has the power to issue notices requesting exchanges to provide this information”.

Think we missed something? Let us know in the comments section below.

    Share Your Opinion, Write a Comment