The Coinbase crypto exchange will pass on the data of customers who have received more than the specified amount in their accounts to Her Majesty's Tax and Customs Administration (HMRC). This information has been disclosed by a British user of the Exchange.
Coinbase writes that it has received notification from the tax authorities that it must pass on 'client account information to Coinbase'. The nature of the information transferred is not specified.
The Tax Administration is interested in the records of customers who received over £5,000 for the 2019/2020 tax year. Initially it required the disclosure of all client information for 2017-2019, but further negotiations have narrowed the scope of the request. In calculating the total, both the purchase of cryptocurrency on the platform and its crediting to the user account are taken into account.
Last year, HMRC sent out letters to several exchanges with similar requirements. UK residents must pay Capital Gains Tax when trading in cryptocurrencies. Coinbase offers customers to use a digital disclosure service to send relevant information to HMRC.
In August it became known that letters from tax authorities reminding them of their obligations to the state were received by American cryptocrrency users.