The UK and other EU governments are preparing to snap-down on Bitcoin due to which there are occurring concerns that the digital currency is being used for money laundering and tax evasion.

Bitcoin was used initially in the black market enabling users to buy and sell bitcoins anonymously like other digital currencies. Before the craze of cryptocurrency, it attracted criminals and tax avoiders.

The Treasury stated: “We are working to address concerns about the use of cryptocurrencies by negotiating to bring virtual currency exchange platforms and some wallet providers within anti-money laundering and counter-terrorist financing regulation.”

The European Union are planning to come into action by the end of the year and early 2018 to crack down on these tax avoiders.

Coinbase has already been ordered by the IRS to supply all of the user's identities in the U.S. who have at least made one bitcoin transaction which is equal to at least $20,000 between 2012 and 2015. Coinbase will also be required to give the holders names, address, tax ID number and providing details of only 14,355 account owners out of its 6 million customer database.