CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$50,080.00
  • ethereum
    ETH$1,660.25
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » UK’s Tax Authority To Leverage Blockchain To Track Bitcoin Transactions

    UK’s Tax Authority To Leverage Blockchain To Track Bitcoin Transactions

    Author: Joel Laforest

    Last Updated Jan 20, 2020 @ 19:06

    UK’s Revenue and Customs agency is ready to invest up to $130,000 towards the development and implementation of a new “cryptoanalysis” tool. 

    According to a recent report, the United Kingdom’s tax authority, HM Revenue and Customs (HMRC) is looking for, “vendors to showcase their capabilities by demonstrating their expertise in the field of crypto-asset tracing.”

    The new software tool will be used to help the tax authority trace several types of cryptocurrency transactions, which are stored anonymously on a blockchain.

    Criminal Activity on the Blockchain

    Although today, an increasing number of people are using cryptocurrency and digital assets for legal purposes, earning legitimate payments on their digital assets, there is still a looming concern about those who use virtual currencies for criminal activities. 

    The concern is that, due to the anonymous transactions made possible by blockchain technology, cybercriminals and fraudsters around the world are able to leverage this anonymity for their own nefarious purposes. 

    In fact, criminal activities, such as illegal gambling services, dark web operations, and tax evasion have been a common theme surrounding the blockchain industry ever since Bitcoin was first created back in 2009. 

    Along with other government bodies, such as the U.S. SEC and CFTC, which are working tirelessly to bring more safety and security to the industry, the HMRC is now on the hunt to find a suitable tool for their FIS-DSI cybercrime unit to use to monitor blockchain-based transactions within the country’s jurisdiction.

    The Hunt for a New Cryptoanalysis Tool

    According to the HMRC, they are seeking the “provision of a tool that will support intelligence-gathering methods to identify and cluster crypto-asset transactions into linked transactions and identify those linked to crypto-asset service providers”.

    Ideally, the government institution is looking for a software that can track transactions made on other blockchains such as the Monero, Zcash, and Dash blockchains. 

    But for now, they are mainly concerned with finding a tool to monitor transactions on the most popular blockchains; Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Tether, Ripple, and Litecoin. 

    While there will always be the concern that criminals can use the blockchain for illegal purposes, projects such as this go to prove that blockchain-based technology has much more to offer than just an alternative form of currency. 

    The HMRC is currently accepting proposals from prospective tech agencies until the end of January, and have the 17th of February set as the scheduled start date for the project. 

     

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • russia_dark_cover
      Russia Seeks Imprisonment for Undeclared Bitcoin and Cryptocurrency Transactions
    • BidenTrumpBitcoin
      Trump Or Biden? Max Keiser Explains Why Bitcoin Will Be The Ultimate Winner After the US Elections
    • swiss_btc_eth
      Tax Payment in Bitcoin and Ethereum Will Soon Be Accepted In Zug Switzerland
    Read more on: Bitcoin Blockchain Ethereum

    About The Author

    Joel Laforest View more posts by this author

    As a freelance writer, Joel has over 3 years of experience working in a wide variety of industries and online niches. Based out of Canada, Joel writes primarily about tech, blockchain, finance, along with managing a digital marketing blog, The Hobo Marketing Co.

  • bitcoin
    BTC$50,080.00
  • ethereum
    ETH$1,660.25
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    pionexb
    2local
    Bitcoin Editorials
    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!