Apparently, there are just too many people trying to evade paying their taxes through cryptocurrency. The UK has recently opened up a contract for a software that detects when cryptocurrency is being used to avoid paying taxes. This software should be able to detect ‘cryptocurrency clusters’ with the following cryptocurrencies in particular: Bitcoin, Bitcoin Cash, Ripple, Tether, Litecoin and Ethereum.
Because cryptocurrency does provide a means to transfer ‘value’ between two parties, it makes it much easier to launder money or evade taxes. The government is becoming increasingly aware of just how powerful cryptocurrency can be and they are stepping up to do something about it.
This would be a huge feat since tax agencies worldwide are struggling, trying to come to grips with a solution that would help them in their quest.
Way to go UK!