Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the existing HMRC enforcement regime with regards to tax evasion using cryptocurrencies; and if he will make a statement.

Cryptoassets present unique challenges to HMRC as they can be easily acquired and transferred, including across borders, but do not usually record the identity of their owners.

HMRC has used powers provided by Parliament to gather information from cryptoasset exchanges. HMRC has written to customers where data shows they own, or have owned, cryptoassets. They have advised them of the tax consequences of common transactions.

HMRC also applies traditional enforcement approaches, such as enquiring into tax returns.

The UK continues to work with international partners, including multinational organisations such as the Organisation for Economic Co-operation and Development, to cooperate, share information, and develop responses.

The majority of individuals and businesses wish to pay the tax that is due, and the Government wants to help them get their tax affairs right. HMRC has published guidance on the taxation of cryptoassets, which is among the most detailed guidance released by any tax administration, on what is a complex topic.

HMRC has developed its capability to deal with risks arising from cryptoassets through the development of in-house training and the use of blockchain forensic tools.

HMRC will continue to actively monitor the compliance risks as this technology develops and the uses and users of cryptoassets change.