UK Tax Authority Increases Crypto Compliance Efforts with Warning Letters
- HM Revenue & Customs (HMRC) issued nearly 65,000 warning letters in the latest tax year, doubling from 27,700 the previous year.
- Over the past four years, HMRC has sent more than 100,000 nudge letters to encourage voluntary tax compliance among crypto investors.
- The Financial Conduct Authority estimates that approximately 7 million UK adults now hold cryptocurrencies, a significant increase from 5 million in the previous year.
- Starting in 2026, HMRC will gain automatic access to global transaction data under the OECD’s Crypto-Assets Reporting Framework (CARF).
- US lawmakers are considering updates to crypto tax policy, including potential exemptions for small transactions under $300.
- South Korea’s National Tax Service is also intensifying its crackdown on crypto tax evasion, threatening seizure of assets linked to unpaid taxes.
The increase in warning letters reflects HMRC’s heightened focus on ensuring compliance among the growing number of crypto investors in the UK. With a notable rise in ownership and transaction visibility through exchanges, authorities are aiming to address potential tax evasion effectively.
As of now, around 7 million UK adults own cryptocurrencies, highlighting the need for clear understanding of capital gains tax implications when trading digital assets.(Source)
