Coinbase UK to hand over customer data to HMRC for UK residents who received more than £5,000 in crypto

The Coinbase UK cryptocurrency exchange will disclose to His Majesty’s Revenue and Customs (HMRC) information about residents who received more than £5,000 in cryptocurrencies. Corresponding notices were sent to platform clients.

Just got this email from Coinbase UK re: HMRC

«This notice requires us to provide information on your Coinbase account to HMRC.»

«requires the disclosure of customers with a UK address who received more than £5,000 worth of crypto assets on the Coinbase platform…» pic.twitter.com/7wWE6QCol6

— IMineBlocks ⛏️ (@IMineBlocks_com) October 2, 2020

The exchange notes that, in accordance with HMRC’s request, it must disclose \”information about the customer’s account\”.

The nature of the data is not specified. Users wonder what these details might include. They are concerned that the transmitted information will include not only taxable profit amounts but also asset holdings, personal details, and sending/receiving cryptocurrency addresses.

@coinbase What information specifically being shared with HMRC ? Personal details, Txn Amounts, Holdings, Sending & Receiving Addresses?

— IMineBlocks ⛏️ (@IMineBlocks_com) October 2, 2020

HMRC is interested in records for clients who received more than £5,000 in the 2019/2020 tax year. The scope includes both cryptocurrency purchases on the platform and their deposits.

Initially, the authority planned to obtain information on all clients for 2017–2019. In subsequent negotiations, the exchange persuaded HMRC to reduce the amount of data requested.

Coinbase UK recommends consulting a tax advisor and a lawyer. The notice also includes a link to HMRC’s guidance on cryptocurrency taxation.

In January this year, ForkLog reported that HMRC planned to use specialized analytical tools to identify illicit activity in the cryptocurrency space.

In November of last year, HMRC published guidance on cryptocurrency operations for businesses.

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