HMRC Seeks Powers To Seize Bitcoin From Custodial Wallets

"The Government is mulling proposals that would give the tax agency powers to access online wallets as part of plans to modernize how tax is collected in the digital age."

HMRC Seeks Powers To Seize Bitcoin From Custodial Wallets
  • "HMRC is already able to seize funds from bank accounts when individuals fail to pay tax under “direct recovery of debts” powers, but is considering extending this to online payment accounts such as PayPal."
  • "While cryptocurrency wallets that are operated by individuals can only be accessed by the owner, those at centralised online exchanges such as Coinbase, Binance and Kraken could be subject to the rules."
“The proposals will help ensure HMRC’s debt collection keeps pace with business practices. E-commerce means new business practices with fewer physical and owned assets held in the UK, which makes it harder for HMRC to collect unpaid taxes using existing powers," a HMRC spokesman said.
  • "HMRC said recently that cryptocurrencies would be added to self assessment tax returns. It will mean an extra £10m a year in capital gains taxes on profits that are not currently reported, forecasters estimate."

Telegraph Article