Businesses in the UK which have not fulfilled their tax obligations could see their cryptoassets seized.

HM Revenue & Customs is considering a revamp of the Direct Recovery of Debts (DRD) legislation, which currently allows it to seize funds from the bank accounts of tax evaders.

HMRC is reviewing proposals with the government which would allow it to access custodial digital wallets held by businesses, as well as PayPal accounts, to confiscate assets and funds.

“Given HMRC has had the power to recover established debts directly from debtors’ bank and building society accounts for seven years, as a matter of principle, equity and fairness it makes absolute sense that HMRC should modernise their approach so that the same power exists in relation to digital wallets,” it said.

HMRC now plans to speak with digital wallet operators to discuss and assess the practicality of the plans.

It also said that cryptocurrencies will be added to individual tax returns.