UK’s tax authority wants to deploy a blockchain analytics tool to catch crypto cybercriminals

Quick Take

  • UK’s tax authority HMRC is looking to deploy a blockchain analytics tool to catch crypto cybercriminals
  • HMRC wants to track crypto transactions of coins including BTC, ETH and XRP
  • Last August, HMRC was demanding customer and transaction information from crypto exchanges Coinbase, eToro, and CEX.IO.

HM Revenue and Customs (HMRC), the U.K.’s tax authority, is looking to deploy a blockchain analytics tool that could help it identify cybercriminals trading in cryptocurrencies.

The tax agency wants to analyze cryptocurrency transactions, such as for bitcoin and ether, which are being used for “tax evasion and money-laundering,” news outlet PublicTechnology reported Monday, citing HMRC’s request for proposal document.

Specifically, HMRC is looking for a tool which, at a minimum, would help track seven digital assets - bitcoin (BTC), bitcoin cash (BTC), ether (ETH), ether classic (ETC), XRP, litecoin (LTC) and Tether (USDT) stablecoin.

HMRC would also prefer a tool that could develop the ability to track privacy-oriented coins such as Monero (XMR), Zcash (ZEC), and Dash (DASH), per the report.

The tax agency is ready to spend £100,000 ($130,000) toward licensing for the chosen tool. It is inviting proposals from potential suppliers until January 31 and looking to start a contract on February 17.

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