The UK’s tax, payments, and customs authority, HM Revenue and Customs [HMRC] is reportedly looking to invest in a “crypto-asset blockchain analysis tool” that could identify criminals indulging in the trade of Bitcoin or other cryptocurrencies.
In response to the growing menace of cyber-criminals leveraging crypto to evade tax and money laundering, PublicTechnology reported that Her Majesty Revenue and Customs is seeking a tool to track transactions and value fluctuations in Ethereum and Ethereum Classic, Bitcoin and Bitcoin Cash, Ripple, Tether, and Litecoin.
In addition to that, the tax authority would also prefer a product that could develop the ability to track privacy coins such as Monero, Zcash, and Dash.
“Many of these crypto-asset transactions are recorded publicly in a ledger known as a blockchain. Whilst the transactions are typically public, the participants undertaking them are not.”
HMRC’s contract value for the tool was reported to be £100k or $1,29,975. The description of the crypto-asset blockchain analysis tool as stated on the official notice read,
“Provision of a tool that will support intelligence gathering methods to identify and cluster Crypto-asset transactions into linked transactions and identify those linked to Cryptoasset service providers.”
HMRC reportedly stated,
“The successful service provider must have relevant people, suitable assets, and deep experience. Critically, we will be looking for vendors to showcase their capabilities by demonstrating their expertise in the field of crypto-asset tracing.”