UK HMRC Proposes Expansion of Crypto Information Retrieval Powers

The UK’s HM Revenue and Customs (HMRC) has proposed extending the notification powers of financial institutions to cryptocurrency service providers and updating the rules for retrieving computer records and software. HMRC stated that this reform aims to ensure the acquisition of information necessary for taxation, with any changes accompanied by appropriate safeguards. UK crypto tax software company Recap pointed out that the definition of service providers may include entities that do not hold customer funds, such as tax software, wallet software, blockchain explorers, data providers, and hardware wallet manufacturers. Additionally, the measure will remove the statutory requirement to submit annual reports of such notifications to Parliament. Once names, addresses, and tax identification numbers are linked to Bitcoin addresses, this information will correspond on the public chain for the long term, raising concerns in the industry about potential increases in personal safety risks.

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