The UK arm of popular cryptocurrency exchange, Coinbase, has revealed that the UK tax authority, HM Revenue and Customs (HMRC) is requesting for details of cryptocurrency users in the region.
According to a mail sent to Coinbase UK customers today, HMRC instructed the exchange to send details of users who received cryptocurrencies up to the tune of £5,000 ($6,474) in the 2019/2020 tax year.
Coinbase noted that the British tax authority had earlier requested “certain records” of its UK clients between 2017 and 2019. However, the process of obtaining three years’ worth of information could be overbearing for the company, which prompted Coinbase to plead with the tax authority to reduce its requirements.
HMRC committed to taxing crypto gains
This is not the first time that HMRC would be requesting exchanges within its jurisdiction to provide customers’ details.
Last year, the taxman sent letters to three popular exchanges in the region, including Coinbase, eToro, and CEX.IO, requesting UK customers’ information between 2017 and 2019 on their platforms.
Even though the exchanges did not disclose whether they forwarded the information to the tax body, it is clear that HMRC is still committed in its quest on taxing crypto gains of UK users, following today’s development.
High crypto profit lures tax regulators
Several reports have emerged in recent times, showing that global regulators seek to tax crypto gains from retail users due to the huge profit recorded in the industry.
Alongside other nations that have shown interest in taxing crypto gains, the South Korea government moved to impose tax levies on crypto users’ profit.
Also, Coinfomania reported that the Australian government reiterated its stance on taxing crypto profit by dispatching letters to more than 350,000 crypto users, reminding them of their obligation to pay tax.