UK tax authority weighs broader crypto data powers, raising privacy concerns

The UK tax authority, HMRC, is seeking to expand its power to request information from cryptocurrency service providers, raising concerns over the privacy and personal safety of Bitcoin holders, Forbes reported. According to Forbes, the proposed changes would extend financial institution information notice rules to crypto service providers and update access powers related to computer records and software information. A key concern is that if users’ real names, home addresses and taxpayer identification numbers are linked to BTC wallet addresses, public blockchain data could be used to track past transactions and asset movements over long periods. Forbes said a leak of such information could increase the risk of physical crime targeting large holders. Public consultation on the proposal ended on Sept. 7, local time, and the UK government has not yet decided whether to adopt it.