British tax authorities want to confiscate exchange wallets

Britain's HM Revenue and Customs (HMRC) is proposing to introduce new rules that would give them the power to seize cryptocurrencies from companies that fail to pay their taxes.

According to a rapport of news portal The Telegraph, the British government is considering giving local tax authorities (HMRC) powers to seize cryptocurrencies from businesses. HMRC can already seize money from bank accounts when individuals fail to pay their taxes.

According to The Telegraph, an HMRC consultation paper suggests that this could also apply to corporate crypto wallets. Wallets on centralized exchanges are affected by the rule. Private wallets are not accessible to authorities. Law enforcement officials have until now had the power to seize cryptocurrencies from exchanges if they find criminal activity.

A spokesman for HMRC said, "The proposals will help HMRC collect taxes in line with business practices. E-commerce means new business practices with fewer physical assets and assets owned in the UK. This makes it harder for HMRC to collect unpaid tax using existing powers."