UK Crypto Users Required to Share Account Details With Tax Authorities From January
Cryptocurrency users in the UK are now required to provide their account details to tax officials or risk financial penalties, following new rules that took effect on 1 January.
The changes, introduced by HM Revenue & Customs (HMRC), are aimed at tightening compliance and ensuring investors pay the correct tax on crypto transactions, including capital gains tax. Under the new framework, HMRC will automatically collect data on users of cryptocurrency exchanges, which function similarly to banks within the digital asset ecosystem.
The move is expected to help the tax authority recover tens of millions of pounds in unpaid tax that has historically been difficult to track. According to HMRC estimates, thousands of UK crypto holders may currently have outstanding tax liabilities, with the new rules projected to raise at least £300m over the next five years.
The measures come amid increased scrutiny of the crypto sector. Bitcoin, often viewed as a benchmark for the wider market, saw sharp price movements in 2025, rising from around $93,500 (£69,500) at the start of the year to almost $124,500, before falling below $90,000 by year-end. Investors who profited from such fluctuations may now be liable for tax on those gains.
Dawn Register, a tax dispute resolution partner at accountancy firm BDO, said HMRC has long been concerned about widespread non-compliance among crypto investors. She noted that the new rules would significantly reduce the ability of individuals to conceal untaxed profits by giving authorities greater visibility over crypto transactions.
Under the regulations, cryptocurrency exchanges must ensure that accurate and up-to-date information on users’ earnings is automatically shared with HMRC. Failure to comply could result in fines for the platforms.
The rules form part of the Cryptoasset Reporting Framework (CARF), which is being adopted in dozens of countries to improve international cooperation between tax authorities and facilitate cross-border information sharing.
Ms Register also warned that individuals who made crypto gains during the 2024–25 financial year may need to submit a self-assessment tax return by 31 January, using a new crypto-specific section of the form. She added that HMRC is encouraging voluntary disclosure from those with unpaid tax from previous years and is operating a disclosure facility for undeclared gains prior to April 2024.
Meanwhile, the Financial Conduct Authority (FCA) is continuing a public consultation on broader crypto regulation, which runs until 12 February. Proposed measures include tougher standards for exchanges, new responsibilities for brokers, and clearer rules around crypto lending and borrowing.
Commenting on the consultation, the FCA’s executive director for payments and digital finance, David Geale, said comprehensive regulation of the sector was inevitable, adding that the goal was to protect consumers while supporting innovation and building trust in digital finance.
