HM Revenue and Customs (HMRC) has issued a statement according to which the regulator will soon be issuing the so-called "nudge" letters in regards to cryptocurrency holdings, City A.M. has learned. According to Zoe Wyatt, Crypto Asset Specialist at Andersen UK, the tax officials will automate the process of sending these letters to anyone who has bought and sold crypto.
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Wyatt has doubted that HMRC could open enquiries into all of the taxpayer account information. However, these letters will likely ring alarm bells for those who did not disclosure their profits on cryptocurrency investments.
The news comes after Action Fraud, British reporting center for fraud and cybercrime, found that over $200 million has been stolen to cryptocurrency fraud this year. This number is by 30% more than was lost throughout the whole of 2020.
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