Businesses in the UK which have not fulfilled their tax obligations could see their cryptoassets seized.
HM Revenue & Customs is considering a revamp of the Direct Recovery of Debts (DRD) legislation, which currently allows it to seize funds from the bank accounts of tax evaders.
HMRC is reviewing proposals with the government which would allow it to access custodial digital wallets held by businesses, as well as PayPal accounts, to confiscate assets and funds.
“Given HMRC has had the power to recover established debts directly from debtors’ bank and building society accounts for seven years, as a matter of principle, equity and fairness it makes absolute sense that HMRC should modernise their approach so that the same power exists in relation to digital wallets,” it said.
HMRC now plans to speak with digital wallet operators to discuss and assess the practicality of the plans.
It also said that cryptocurrencies will be added to individual tax returns.
Cryptocurrency shorts
Cryptocurrency exchange Bittrex has filed for the bankruptcy of its US entity – but its global operations serving non-US customers will continue. It said all US customers will be able to access their funds.
The legal team of FTX founder Sam Bankman-Fried is seeking the dismissal of up to 10 charges against him dismissed in court ahead of his criminal trial in October. The only charges he is not seeking to dismiss are conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.
Almost 400 crypto firms in Estonia have voluntarily shut down or had authorisations revoked following the government’s updated laws around terrorist financing prevention and anti-money laundering.
Crypto prices
The overall market cap of the 23,700 coins is at $1.14 trillion at the time of writing (7am UK), a 2.1% decrease in the last 24 hours, with Bitcoin trading around $27,500.
For round-ups of recent cryptocurrency news developments, click here.
For valuations of the top 100 coins by market cap in US dollars, plus 24-hour price change, see below.