Coinbase has told some of its users it is passing their details onto the U.K. tax authority, HMRC.
- As first reported by Decrypt, the popular crypto exchange emailed some users saying that as part of a deal with HMRC, it must provide records on customers who had received more than ÃÂ£5,000 ($6,500) during the 2019-2020 tax year.
- The email appears to have been only sent to users the exchange believed crossed that threshold; it encourages them to reach out to their accountants or tax advisers.
- The notice comes over a year after HMRC first requested crypto exchanges send over information on U.K. residents who had moved money on their platforms.
- Per the email, Coinbase said HMRC had originally requested records on its customers between 2017 and 2019, but a compromise limited the data to customers using digital assets to receive greater amounts.
- In the U.K., cryptocurrencies count as an investment asset and are subject to capital gains tax, which for high-income earners can come to approximately 20% on gains.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.