UK tax authority seeks broader powers to obtain crypto user data

The UK’s tax authority, HM Revenue & Customs (HMRC), is seeking to expand its powers to investigate crypto assets, according to Forbes. The proposal would let tax officials request customer information directly from crypto asset service providers and would also revise rules covering inspections of software and electronic records. The move has drawn privacy concerns from Recap, a UK crypto tax software company, which said the proposed definition of service providers is too broad. In its view, the scope could extend beyond custodial firms to include non-custodial wallet software, blockchain explorers, hardware wallet manufacturers, and tax software providers. Recap warned that if an investor’s personal identity is linked to an on-chain wallet address, their long-term asset activity could become exposed. That, the company said, may raise the risk of data leaks, extortion, and even physical attacks.