UK's HMRC Proposes Introduction of Cryptocurrency Forensic Tools to Strengthen Digital Asset Tax Compliance

Odaily According to a market research announcement released this week, the UK's HM Revenue and Customs (HMRC) is exploring the procurement of blockchain forensic software and investigation support services to enhance its efforts against money laundering and tax fraud involving digital assets. The announcement indicates that HMRC intends to procure licensing 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 (from 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 Global Head of Government Solutions at Taxbit, commented that this move reflects the global government's emphasis on building digital asset compliance infrastructure. He noted that investigative 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 cryptocurrency compliance and regulatory transparency. (The Block)