UK Tax Authority Plans to Introduce Crypto Forensics Tools to Strengthen Digital Asset Tax Compliance

Odaily News: The UK's HM Revenue & Customs (HMRC) is exploring the procurement of blockchain forensics software and investigation support services to enhance its crackdown on money laundering and tax fraud involving digital assets. A market research notice published this week indicates that HMRC intends to procure licenses and investigation support services covering functionalities such as blockchain data querying, cross-chain transaction tracking, attribution analysis, risk scoring, and data visualization.

The total value of the proposed contract is approximately £3.42 million (around $4.6 million USD), spanning three years (April 1, 2027, to March 31, 2029), with an option to extend until March 2030. The contract includes annual allocations of 55 software licenses and 20 investigation support hours, along with investigator training. Colby Mangels, former OECD advisor and Head of Global Government Solutions at Taxbit, stated that this move reflects the global government's emphasis on building digital asset compliance infrastructure. Investigation work increasingly relies on cross-chain tracking, forensic analysis, and real-time blockchain data access, demonstrating the UK's commitment to playing a leading role in crypto compliance and regulatory transparency. (The Block)