Crypto Regulation: UK and France Ready to Toughen Measures

European authorities are actively working on setting up a suitable framework for the regulation of cryptos. Currently, they are particularly interested in how to avoid tax evasion related to the crypto sector. Also, the British tax authorities (HMRC) recently published a consultation document on the subject. At the same time, France wants to strengthen its measures to combat tax evasion.

The UK is ready to crack down on crypto exchanges!

At the moment, the EU is at war against crypto tax evasion and is banking on transparency between states to combat it. Meanwhile, the UK government has resolved to modernize tax collection. In this context, HMRC has indicated that he wants the power to seize cryptos from companies that fail to pay their taxes. To this effect, suggestions have been sent to the government to request access to companies’ crypto wallets.

It should be pointed out that the British authority already has this possibility 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 needed when the use of crypto 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. That said, if the regulation is put in place, it is mainly the centralized exchanges that may be subject to it. These include Binance, Coinbase, and Kraken. Meanwhile, crypto wallets controlled by individuals will remain accessible only to their owners.

France strengthens its measures to combat tax evasion

While the United Kingdom is preparing to crack down on exchanges, France wants to strengthen its anti-tax evasion measures. Indeed, the government recently presented a battle plan against tax evasion. He indicated that serious tax evasion would run the risk of losing the right to vote.

Gabriel Attal, Minister for Action and Public Accounts, declared: “For the heaviest tax evasion, we are no longer in citizenship. The sanctioned person would no longer have the right for several years, to any civic rights, and would lose any tax credit“.

It should be clarified that the recent statements from HMRC come some time after the FCA raided illegal crypto ATMs. The authorities are determined to curb illegal activities in the area.

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