The San Francisco-based digital currency exchange Coinbase has informed its users through an email that it is providing their details to HM Revenue and Customs (HMRC) the tax authority of the United Kingdom (UK). Informing users about this, Coinbase said that it is doing this because of a deal that it has with the UK’s tax authority.
Details of Customers who received over £5,000 Worth of Crypto
Users of Coinbase in the United Kingdom have been emailed by the company that their record is being passed over to HMRC. However, the company will be handing over the details of only those customers who have got a UK address and had received over £5,000 (approximately $6,500) during the tax year of 2019 – 2020. Therefore, the email has been sent to only those whose threshold jumped above this figure.
Coinbase is providing essential information about its clients’ accounts after it received a notice from HM Revenue and Customs authority under “Paragraph 1, Schedule 23 to the Finance Act 2011”.
Originally, the tax authority was asking the cryptocurrency exchange for the records of the customers of the period between 2017 and 2019. However, the notice was revised later on after the company made some discussions with HMRC on this matter.
The company said in the email:
“The original notice that we received from HMRC required Coinbase to provide certain records from 2017 – 2019 relating to all customers of our UK business. Based on further discussions with HMRC, a revised notice was issued with reduced scope that now requires the disclosure of customers with a UK address who received more than £5,000 worth of crypto assets on the Coinbase platform during the course of the 2019/2020 tax year. This includes both purchases or receipts of crypto to your Coinbase account.”
Furthermore, the company said to its users in the email that they can consult with their legal or tax advisor if they have any questions regarding their Coinbase account activity or related to tax matters.