Crypto regulation: The UK and France ready to tighten measures

European authorities are actively working on establishing a framework suitable for regulating cryptocurrencies. Currently, they are particularly concerned about how to prevent tax evasion related to the crypto sector. Additionally, the UK’s tax administration (His Majesty’s Revenue and Customs, HMRC) has recently released a consultation document on the subject. In parallel, France aims to strengthen its measures to combat tax evasion.

The UK is ready to crack down on crypto exchanges!

At present, the EU is waging war against crypto tax evasion and relies on transparency among states to combat it. Meanwhile, the UK government has resolved to modernize tax collection. In this context, HMRC has indicated its desire to have the power to seize cryptocurrencies from companies that fail to pay their taxes. To this end, suggestions have been sent to the government requesting access to companies’ crypto wallets.

UK tax authorities to be granted power to seize Bitcoin held on exchanges: The HM Revenue and Customs (HMRC) is proposing the introduction of new regulations that would give it the authority to … Continued

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It is worth noting that the British authority already has this ability with bank accounts. If it succeeds in expanding its capacity, it will be able to legally seize bitcoins held on crypto exchanges. HMRC believes this power will be necessary when the use of cryptocurrencies becomes widespread as an online payment method.

HMRC’s proposal is part of the fight against illegal behavior and money laundering. The crypto sector has always been accused of facilitating these activities. However, if regulation is implemented, it will mainly affect centralized exchanges such as Binance, Coinbase, and Kraken. Meanwhile, crypto wallets controlled by individuals will remain accessible only to their owners.

France strengthens its measures to combat tax fraud

While the UK is preparing to crack down on exchanges, France aims to strengthen its anti-tax evasion measures. Indeed, the government recently presented a battle plan against tax fraud. It stated that serious tax fraud would entail the risk of losing the right to vote.

Gabriel Attal, Minister of Action and Public Accounts, stated, “For the most serious tax frauds, we are no longer dealing with citizenship. The sanctioned individual would lose all civic rights for several years and would forfeit any tax credit.”

It is worth noting that HMRC’s recent statements come shortly after the FCA targeted illegal crypto ATMs. The authorities are determined to curb illegal activities in the sector.