UK’s Tax Agency Wants to Use Blockchain Analytics to Fight Crypto Cybercriminals

UK’s Tax Agency Wants to Use Blockchain Analytics to Fight Crypto Cybercriminals

UK’s tax agency HMRC has said that it wants to acquire and use a blockchain analytics tool to help fight crypto cybercriminals.

Her Majesty’s Revenue & Customs posted the open contract request last week and is currently accepting bids from interested providers.

According to the contract details, Britain’s tax agency wants the chosen firm to offer a tool that can track cryptocurrency transactions, linking them to providers like exchanges.

The tax agency has budgeted to spend £100,000 ($130,000) on the project. The money will ostensibly be used to license the analytics tool its team picks after going through proposals interested parties should send before January 31.

HMRC wants to access and deploy the said blockchain analytics tool by February 17, 2020.

Tax agency targets top cryptocurrencies

Tax authorities in the UK are particularly interested in tracking and analyzing transactions related to at least six of the leading cryptocurrencies and a stablecoin. Also of interest would be a tool capable of tracking privacy-oriented coins.

Ideally, the agency wants a tool that can track all the top three cryptocurrencies – Bitcoin (BTC), Ethereum (ETH) and XRP. Also included in this loop are Bitcoin Cash (BTC), Ethereum Classic (ETC), and Litecoin (LTC). The tool should also be able to track transactions related to the stablecoin Tether (USDT).

Additionally, HMRC’s Cybercrime team wants a tool capable of tracking privacy coins like Dash (DASH), Monero (XMR), and Zcash (ZEC).

The tool, the tax agency notes, should “support intelligence-gathering” and cluster analysis of cryptocurrency transactions. The authorities want to be able to link crypto transactions to service providers.

The taxman wants to deploy the analytics tool to aid the agency’s efforts in fighting the use of cryptocurrencies in cybercrime. Among those targeted will be individuals who use cryptocurrencies to evade taxes and for money laundering.

In August last year, UK’s tax agency HMRC asked Coinbase, eToro, and CEX.IO to hand over names and transaction details of their customers. A similar demand the IRS sent to Coinbase ended with over 10,000 cryptocurrency holders receiving letters related to crypto taxes.

On January 15, the blockchain analytics firm Chainalysis reported that criminals laundered over $2.8 billion in Bitcoin through crypto exchanges.

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