Her Majesty’s Revenue & Customs (HMRC) – the tax, payments and customs of the UK – has reportedly required crypto-related businesses to grant them access to clients’ transaction data, to determine tax violation.

Specifically, 3 UK-based digital currency exchanges – Coinbase, eToro, and CEX.io – have reportedly received letters from the department, requesting above-mentioned situation.

HMRC is reportedly working with crypto businesses, in an effort to determine tax invaders. 

“If they [HMRC] do only go back two or three years, I think the interesting thing here is, that the individuals who went into crypto very early on in 2012-13 will not be affected. The ones who probably made the largest gains won’t be affected, it will be the people who came in around the time crypto peaked.” Coindesk reported.

“These exchanges can retain information on their clients and the transactions that they have completed. These transactions may result in potential tax charges and HMRC has the power to issue notices requiring exchanges to provide this information.” HMRC claimed the requests are entirely in its ability to carry out.

In December 2018, HMRC released its complete tax regulation for private crypto holders, with an additional prolonged consulting session. Particularly, businesses are demanded to pay Capital Gains Tax or Income Tax, accordingly to their own kind of associated crypto activities.

HMRC’s initiative is in line with that of IRS, with 10,000 letters sent to crypto establishments requesting information, and reminding them to pay their taxes.