Amidst the growing popularity of altcoins in the UK, the country’s top tax authority HMRC is introducing new measures to nab tax evaders. HMRC suspects them to be stocking monetary assets in cryptocurrencies. It is further reported that from now on the “statement of assets” form which is sought during investigations that involve matters of tax evasion, will also seek details regarding crypto investments.
Because the HMRC is concerned about money laundering and “hidden wealth,” it is expanding the scope of investigations by bringing in the crypto holdings under the purview of future investigations.
While the HMRC is making efforts, it is still unclear how it would affect average cryptocurrency owners and traders in the UK. Also, it is doubtful if the said steps would prove fruitful in nabbing the tax evaders and curtailing the use of cryptocurrencies for illicit activities.
The attitude of European governments, the UK in particular, towards cryptocurrencies has been supportive. It is one of the primary reasons why the cryptocurrency market in the UK has expanded exponentially. Recently, a blockchain-based startup in the UK also managed to get a $100 million investment by an asset management firm Baillie Gifford & Co. It is amongst the highest any cryptocurrency startup has managed to get from a conventional venture capital firm.