UK Tax authority wants to track your Bitcoin

[hugeblack]

The UK Tax Authority, HM Renue and Customs (HMRC) is looking to spend 100,000 pounds (approximately $ 130,500) in providing its cybercrime team with a tool that can be used to analyze various cryptocurrencies and thus track criminals, dark activities, tax evasion And a variety of purposes.

HMRC is seeking the “provision of a tool that will support intelligence-gathering methods to identify and cluster crypto-asset transactions into linked transactions and identify those linked to crypto-asset service providers.”

In short, the bottom line of all this spending and analysis is tackling tax evasion.

“The nature of tax compliance is changing and HMRC is continuing to develop its capacity and expertise in order to respond to the emerging threats to the tax system, including via cryptoassets," an HMRC spokesperson told Decrypt.

Most likely the focus will be on tracking currencies related to Gambling services, the dark web and Mixing services, specifically on privacy-oriented currencies like Monero, zcash, ...etc.

Read more and Source ---> https://decrypt.co/17184/hmrc-explains-why-it-wants-to-track-your-bitcoin?utm_source=reddit&utm_medium=social&utm_campaign=sm

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[HeRetiK]

I'm curious to see with which blockchain analysis company they'll end up working with. Chainalysis already has the IRS on their list of clients, adding the HMRC to that list would further cement their position in the market. On the other hand, who knows what the other companies have up their sleeves.

Still, with a budget of GBP 100,000,- I don't seem them going very far as far as mixers and privacy-focused cryptocurrencies are concerned. Either way yet another reason to focus on privacy and stay a step ahead of governmental institutions.

[LeGaulois]

In my country, they wanted something similar. The difference is they offered to pay a reward to anyone able to create a 'tool' to help them to analyze transactions. No matter who you are. I would prefer they hire me instead of creating software for them. profitability first!

Governments won't keep using blockchain analysis companies forever, they will create their own employment. We will see a lot of very high paying jobs created in the years to come, someone with knowledge about cryptos, especially their blockchain, could end up working for the taxes department or police with a salary as high as a company owner with thousands of employees.

The problem is not a lot of people have deep knowledge and when they have, they're already working for a tech company with a comfortable salary, making it harder to hire. The demand and supply.

[CryptoBry]

This is quite expected since we all know that cryptocurrency really has the potential to be utilized by people illegally (well, just like the fiat too) and so some governments (UK specifically this time) to be ready for an era where cryptocurrency is part and parcel of our daily lives. I am sure they had set-up almost the same mechanism for the illegal use of the fiat money as well. There will always be a tug of war here and nothing surprising anymore. The government is just doing its job but in cases where it overstep the boundary then it is our responsibility to call out and criticize them.

[gentlemand]

Most likely the focus will be on tracking currencies related to Gambling services, the dark web and Mixing services, specifically on privacy-oriented currencies like Monero, zcash, ...etc.

Since Europol have stated Monero can't be traced let's hope they don't hand over a few million quid of our money to someone who claims they can.

And what's with gambling? The British government seem to actively want everyone to ruin themselves doing it. It ain't the US.

[lukew]

This is quite expected since we all know that cryptocurrency really has the potential to be utilized by people illegally (well, just like the fiat too) and so some governments (UK specifically this time) to be ready for an era where cryptocurrency is part and parcel of our daily lives. I am sure they had set-up almost the same mechanism for the illegal use of the fiat money as well. There will always be a tug of war here and nothing surprising anymore. The government is just doing its job but in cases where it overstep the boundary then it is our responsibility to call out and criticize them.

The Bank of England, Barclays and a few others are working on implementing a blockchain based alternative to the current and rather aging BACS and inter-bank exchange system. How far into public use it will spread, we can only speculate at the moment.

[Tiews223]

In my country, they wanted something similar. The difference is they offered to pay a reward to anyone able to create a 'tool' to help them to analyze transactions. No matter who you are. I would prefer they hire me instead of creating software for them. profitability first!

Governments won't keep using blockchain analysis companies forever, they will create their own employment. We will see a lot of very high paying jobs created in the years to come, someone with knowledge about cryptos, especially their blockchain, could end up working for the taxes department or police with a salary as high as a company owner with thousands of employees.

The problem is not a lot of people have deep knowledge and when they have, they're already working for a tech company with a comfortable salary, making it harder to hire. The demand and supply.

The UK government tracking bitcoins activity is somewhat a way for the government to trace in illegal activity that may be linked to sex slavery, prostitution, illegal subtance trade and other inhumane activities. Other than that, this is a way for the government to monitor taxes that will be imposed. We just need to be clear with the extent of information that will be given to the UK government. We need solid guidelines regarding the penalties that will be imposed if ever the UK government fails to do their job properly. This is very important as cryptocurrency is used by so many people and that we need to ensure that these are not abused and used in illegal transactions.

[Upgate]

In my country, they wanted something similar. The difference is they offered to pay a reward to anyone able to create a 'tool' to help them to analyze transactions. No matter who you are. I would prefer they hire me instead of creating software for them. profitability first!

Governments won't keep using blockchain analysis companies forever, they will create their own employment. We will see a lot of very high paying jobs created in the years to come, someone with knowledge about cryptos, especially their blockchain, could end up working for the taxes department or police with a salary as high as a company owner with thousands of employees.

The problem is not a lot of people have deep knowledge and when they have, they're already working for a tech company with a comfortable salary, making it harder to hire. The demand and supply.

Blockchain is gradually taking over the globe. Some tops producing companies are now making use of blockchain network to facilitate their working experience to more fast and efficient ways. Technology is diversifying to a concept form (blockchain)

If the UK plans for tracking bitcoin succeed, I think many countries will do the same. This will make the government to still have control over bitcoin

[suvo05]

Not only in the UK, but Govs over the world are also trying to track the bitcoin transaction. In our country GOV using the cryptography researchers from the top institutes like IITs, ISI to do this job.   

[dutt]

I guess then I should feel lucky that my country barely knows and cares about Bitcoin and crypto in general. There hasn't been a single mention all these years.

[dhemasm]

Curious how it will going since there will tons of used address if the person didn't want to be tracked and out there also some swap service instantly, My country was also have some plan to taxing digital assets and i think this one including crypto, Let's see how it goes since it will also affecting my asset in the future, Thanks for sharing this one mate!