British tax will track dubious cryptocurrency transactions

HM Revenue and Customs (HMRC) intends to use specializedanalytical tools that will help to identify illegal activities in the field of bitcoin and other cryptocurrencies. About this writes PublicTechnology.

In particular, the British tax service intends to analyze transactions regarding the use of cryptocurrencies for tax evasion and money laundering.

HMRC focuses on sevendigital assets: Bitcoin (BTC), Bitcoin Cash (BTC), Ethereum (ETH), Ethereum Classic (ETC), XRP, Litecoin (LTC) and Tether stablecoin (USDT). At the same time, the agency is also interested in tools that could track the so-called private coins: Monero (XMR), Zcash (ZEC) and DASH.

According to the publication, for licensingThe tax authority is ready to spend £ 100,000 ($ 130,000) in the tool for which a choice will be made. Proposals from interested parties will be accepted until January 31, and as early as February 17, a formal contract with a solution provider may begin to operate.

Among the most likely applicants for this rolecompanies such as the American Chainalysis and CipherTrace, as well as the British Elliptic, are called. The latter closed the Series B financing round in September 2019, following which it raised $ 23 million, including from the Japanese corporation SBI Holdings.

Elliptic also recently created a database ofcryptocurrency exchanges, which includes information about 200 different trading platforms. It is expected that this information will make traditional banks more loyal to the crypto industry.