The UK HM Revenue and Customs (HMRC) is looking to use specialized analytical tools that will help to identify illegal activities in the field of crypto assets as reported by PublicTechnology.
In particular, the British tax service intends to analyze crypto transactions for tax evasion and money laundering.
HMRC focuses on seven digital assets: Bitcoin (BTC), Bitcoin Cash (BTC), Ethereum (ETH), Ethereum Classic (ETC), XRP, Litecoin (LTC) and Tether stablecoin (USDT). At the same time, the agency is also interested in tools that could track the so-called private coins: Monero (XMR), Zcash (ZEC) and DASH.
According to the publication, the tax service is ready to spend £ 100,000 ($ 130,000) on licensing of a chosen tool. Proposals from interested parties will be accepted until January 31, and as early as February 17, a formal contract may be executed with a solution provider.
Among the most probable candidates are companies such as the American Chainalysis and CipherTrace, as well as the British Elliptic. The latter closed the Series B financing round in September 2019 raising $ 23 million, including from the Japanese corporation SBI Holdings.
Recently, Elliptic also created a database of cryptocurrency exchanges, which includes information about 200 different trading platforms. This information is expected to make traditional banks more loyal to the crypto industry.