Update on Crypto Security Measures in the US and UK

With rise in crime that involves cryptocurrencies, the US and the UK have come out with new rules related to taxation and investigations. In the US, the IRS is now granted the power to seek customer records related to any unpaid crypto taxes, while in the UK, a new bill will allow investigating agencies to seize crypto assets related to crime.

SFOX in the US is a broker for cryptocurrencies. Based on a new rule, the IRS has sought customer records of over 175,000 users from its bank. The investigation is looking into what could be the case of unpaid taxes since 2015. Reports indicate the total sum of these transactions, over the seven-year period, could run into $12 billion. The inquiry will be initiated with a “John Doe summons” for the M.Y. Safra Bank to share transaction data of SFOX.

The tax return page of IRS carries an upfront inquiry about virtual currency. Tax payers are thus required to disclose any crypto related activity. A media report says it is still not very clear how this question is to be answered.

The UK introduces bill to ‘seize, freeze and recover’ crypto

After a change of the prime minister and the passing away of the Queen, the UK is faced with recession. A new bill that was announced by King Charles earlier will allow authorities to take control over any crypto assets related to crime or illicit activities. King Charles introduced the bill with the aim of bringing in transparency in the economy and to make businesses grow.

Last year, as per a BBC report, crypto assets worth $331 million were seized following money laundering investigations.

“The new law will make it easier and quicker for law enforcement agencies such as the National Crime Agency to seize, freeze and recover crypto assets — the digital currency increasingly used by organised criminals to launder profits from fraud, drugs and cybercrime,” said an official statement from the government.

The UK is expected to adopt cryptocurrency officially in the form of stable coins for payment.


What the latest IRS crypto tax records summons means for investors (cnbc.com)

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