UK tax authority proposal to widen crypto data access draws privacy concerns

The UK’s tax authority, HM Revenue & Customs (HMRC), has proposed broader information-gathering powers that would bring crypto-asset service providers within the scope of Financial Institution Notices and update rules governing access to computer records and software. HMRC said the proposal is intended to help it collect the correct amount of tax. Critics, however, say the plan could create risks that go well beyond tax compliance. They warn that linking names, home addresses and tax identifiers to Bitcoin addresses could permanently expose historical activity on public blockchains. Because blockchain records are public and persistent, the concern centers on whether tax data collection could end up creating a lasting map between real-world identities and on-chain transactions. The proposal remains at the consultation stage. The consultation closed on Sept. 7, 2026, and as of Oct. 8 ministers had not made a decision. HMRC said it could not answer detailed operational questions until it had analyzed all consultation responses. UK crypto tax software provider Recap also warned that the draft definition could extend to companies that do not hold customer funds, including wallet software developers, block explorers and data providers. The item cited 99Bitcoins.