The United Kingdom’s HM Revenue and Customs (HMRC) department is starting to collect cryptocurrency holdings from the citizens who it suspects to have evaded or avoided taxes, according to the accounting firm, UHY Hacker Young Group.
The non-ministerial department will now exclusively ask for information on cryptos and other assets on its ‘statement of assets’ form. It will seek information on cryptocurrencies, assets on e-wallets like PayPal, and, most importantly, assets in value transfer systems like Black Market Pesos, which is allegedly used by Mexican and Colombian drug cartels; Hundi, an Indian credit notes system; and Fei ch’ien, a trust-based Chinese money-transfer system.
The need for cryptocurrency data emerged with the spike in crypto prices and their uses in organized crimes.
“HMRC suspects that an increasing amount of hidden wealth is slipping through its fingers thanks to the rise of cryptocurrencies and other unsanctioned money transfer systems,” UHY Hacker Young Director, David Jones said.
“This demand for information is an important step in HMRC’s fightback against that.”
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People not disclosing their digital assets to the HMRC might face legal actions as well.