HM Revenue and Customs (HMRC), the UK non-ministerial department responsible for tax collection, is reportedly willing to commit $130,000 (£100,000) in a year, to develop a "cryptoanalysis" tool that could help it detect criminal activities in crypto.

According to a <a href="https://www.publictechnology.net/articles/news/hmrc-seeks-tech-unearth-cryptocurrency-cybercriminals">report</a> today, the UK tax authority is seeking a service provider with deep experience and suitable assets to help in developing the tool. 

"Critically, we will be looking for vendors to showcase their capabilities by demonstrating their expertise in the field of crypto-asset tracing," HMRC said.

Precisely, the tool will be used by HMRC's FIS-DSI Cybercrime team to identify and also investigate criminal cases as it relates to <a href="https://www.cryptoknowmics.com/crypto/israel-finds-hamass-new-bitcoin-front-with-iran-links/">Bitcoin</a> trading and other digital currencies.

Although cryptocurrencies such as Bitcoin, and Ethereum are largely used legitimately for payments, more of them are relatively used for criminal activities like tax evasion and money-laundering.

This trend meanwhile can be traced to the fact that crypto-asset transactions are usually recorded publicly on a blockchain. "Whilst the transactions are typically public, the participants undertaking them are not," HMRC added.

Hence, the tool in question is intended to feature intelligence-gathering methods to help spot and "cluster crypto-asset transactions into linked transactions and identify those linked to crypto-asset service providers."

The UK tax agency believes that investing in a commercial tool like this will enable its investigators to breach "intelligence gaps" on how crypto traders are supporting criminal activity against HMRC.
<h2>UK Tax Agency to Wipe Out Criminals</h2>
In addition, the tool is expected to utilize "cluster analysis" to attribute transactions back to service providers or companies involved in dark-web operations, gambling services, or cryptocurrency "mixing" scams.

The tool should also be able to track transactions and price fluctuations of the following cryptos at a minimum: Bitcoin and Bitcoin Cash; Ethereum and Ethereum Classic; Tether; Ripple; and Litecoin, including Monero, Dash, and Zcash.

As reported, the service vendors are allowed to send their proposals until January 31, against the scheduled contract start date which begins on February 17.

UK's Tax Agency is Developing a $130,000 Tool to Fight Crypto Criminal Acts

Ibiam Wayas is an optimistic crypto news reporter who also enjoys tech writing. He is an introvert who spends much of his time on the internet studying facts that will help him excel in the digital/cryptocurrency space.

UK's Tax Agency is Developing a $130,000 Tool to Fight Crypto Criminal Acts

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