Her Majesty’s Revenue and Customs, the department of the United Kingdom Government responsible for tax collection, requested three major crypto exchanges to provide them with financial documents. The three exchanges are eToro, CEX.IO as well as Coinbase.
The HM Revenue and Customs is looking into investors that have made large sums of money by trading crypto coins during the price increases of 2017.
Crypto experts stated that if the authority only goes after those investors that profited greatly in the last two to three years, the ones that entered the market six to seven years ago will be left alone. This means that the early investors that profited the most crypto coin will not be influenced. Yet, the ones that joined the crypto wave during its peak will.
The taxing authority has every right to request the information, as crypto trading is also taxed in the United Kingdom.
Crypto exchanges have the ability to keep the data on customers and their transfers that had been completes. However, it may possibly cause taxa charges and the HM Revenue and Customs will be able to demand the exchanges to disclose customer data.
This came right after the UK issued its first tax regulations of crypto users. Recently, cryptocurrency taxation has been a large issue and was even brought up during the G20 summit.