Leading cryptocurrency exchange Coinbase has revealed its is sharing its several user’s details with the U.K. tax authority, HMRC.
According to a recent official report by Decrypt, the renowned cryptocurrency exchange emailed some users saying that as a part of its recent deal with HMRC, it must offer records on users who had received over £5,000 [around $6,500 USD] during the 2019-2020 tax year.
The email appears to have been only sent to users the exchange believed crossed that threshold; it encourages them to reach to their accountants or tax advisers.
The notice arrives over a year after HMRC primarily requested cryptocurrency exchanges to transfer information on U.K. based users who had moved money on their platforms.
Per the e-mail, Coinbase added that HMRC had originally requested records on its users between 2017 and 2019, but a compromise limited the info to users using virtual assets to receive greater amounts.
In the United Kingdom, cryptocurrencies count as an investment asset and are subject to capital gains tax, which for high-income earners can come to approximately 20% on gains.