Second-largest cryptocurrency broker warns clients it is informing revenue department about changes

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Coinbase, the second-largest cryptocurrency exchange by trading volume, is sending emails to its customers informing them that their cryptocurrency transactions are being sent to HMRC, the U.K. tax office.

According to the text, the measure has been in law since 2011 and brokerage firms are obliged to report such changes to the UK government.

Additionally, the U.K. also removed cryptocurrency ATMs last month. Additionally, several UK banks are restricting the purchase of cryptocurrencies to their clients. Therefore, this situation is not welcome for investors and cryptocurrency companies in the region.

UK pressures Coinbase to take data from customers

Coinbase, the largest U.S. exchange and the world’s second-largest, has come under pressure from Britain’s tax office to provide transaction data for its customers.

According to an email the brokerage firm sent to its U.K. clients, HMRC is collecting data related to 2021, which happens to coincide with Bitcoin seeing one of the biggest gains in its history.

“We are writing to inform you that HMRC has issued a notice to Coinbase pursuant to paragraph 1 of Schedule 23 to the Finance Act 2011,” brokerage Coinbase said. “This notice requires us to provide HMRC with information about your Coinbase account.”

“The notice requires the disclosure of UK-addressed customers who have received fiat currency payments from CB Payments LTD in excess of £5,000 in the 2021 tax year.”

Email from Coinbase to its UK customers. reproduction.

The minimum reported value of £5,000 (31,800 reals) also appears low. After all, this is the same monthly limit as a UK bank for deposits on cryptocurrency exchanges.

Finally, Coinbase advises its customers to consult an accountant they trust if they have any questions about how to prepare for their taxes.

On Digitra.com Exchange, in addition to no longer paying cryptocurrency transaction fees, you will still pay fees for every trade you make. Meet Trade Make Money Go to Digitra.com

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Source of information: Compiled from LIVECOINS by 0x Information.Copyright belongs to the author, without permission, may not be reproduced

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