Coinbase, Exchanges

Does Coinbase Report to HMRC?

Since its launch in 2012, Coinbase has become one of the most popular cryptocurrency exchanges with over 13 million users. But does Coinbase report to HMRC?

The short answer is yes, Coinbase does report to HMRC. The long answer is a bit more complicated.

Under UK law, all cryptocurrency businesses must comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This means that businesses must take steps to prevent money laundering and terrorist financing, and report any suspicious activity to the authorities.

Coinbase does not report to HMRC (Her Majesty’s Revenue and Customs). It is the responsibility of the user to accurately report their transactions and any applicable taxes to HMRC. If a user fails to do so, they may be subject to fines and penalties.

In practice, this means that businesses like Coinbase must collect identifying information about their customers and perform know-your-customer (KYC) checks. They must also monitor customer activity for signs of money laundering or terrorist financing, and report any suspicious activity to the authorities.

Coinbase is registered with the Financial Conduct Authority (FCA) as a Money Services Business (MSB). As such, it is subject to UK AML/CTF regulations.

In addition, Coinbase is a member of the CryptoUK trade association, which promotes best practices in the cryptocurrency industry.

So, yes, Coinbase does report to HMRC. However, it should be noted that individual users are also responsible for reporting their own cryptocurrency activities to HMRC.

Previous ArticleNext Article