UK Intensifies Crypto Tax Oversight as HMRC Issues 65,000 Warning Letters
The UK tax authority has escalated its crackdown on cryptocurrency investors, issuing 65,000 'nudge letters' in the 2024-25 fiscal year—more than double the previous year's tally. HM Revenue & Customs (HMRC) is targeting underreported crypto gains as digital asset ownership surges to seven million UK adults.
These warnings precede formal audits, highlighting HMRC's enhanced monitoring capabilities. The agency now collects data from domestic exchanges and will gain automatic access to international trading information by 2026. Many investors remain unaware that routine activities like token swaps trigger taxable events.
The enforcement push reflects both crypto's mainstream adoption and the growing complexity of digital asset taxation. Over 100,000 such letters have been dispatched since 2020, signaling regulators' determination to treat cryptocurrencies as taxable assets rather than unmonitored speculative instruments.
