UK Tax Agency Seeks Blockchain Tool to Combat Crypto Crimes

HM Revenue and Customs (HMRC), the UK tax authority, is considering investing in Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term technology to help identify crimes involving digital currencies.

Reported by Public Technology on Monday, the tax agency has published an open contract seeking a tool not only to identify illegal crypto transactions but also for tax evasion and money laundering.

The tax agency is ready to shell out GBP 100,000 (around $130,000) for the licensing of such a tool. It will accept the proposals until January 31 and is aiming to start the contract on February 17 for a period of one year initially.

“Many of these crypto-asset transactions are recorded publicly in a ledger known as a blockchain,” HMRC told the publication. “Whilst the transactions are typically public, the participants undertaking them are not.”

Capable of analyzing major blockchains

The agency is primarily looking to license an analytics tool capable of tracking at least seven biggest and widely used digital currencies - Bitcoin, Bitcoin Cash, Ether, Ethereum Classic, XRP, Litecoin, and Tether.

However, preference would be given to a tool that can also track privacy coins, including Monero, Zcash, and Dash.

“Provision of a tool that will support intelligence-gathering methods to identify and cluster crypto-asset transactions into linked transactions and identify those linked to crypto-asset service providers,” HMRC outlined in the proposal call.

With a rise in crimes and illegal transactions, the area of crypto analysis has become very demanding both within the industry and government agencies. Companies offering such services are raising millions in funds and inking major deals.

Chainalysis, one of the popular blockchain analytics, has tied with multiple digital asset exchanges including Deribit, Bittrex, and Bitfinex to mitigate illegal transactions, as well as bolstering their compliance needs,