UK Tax Authority Intensifies Crypto Tax Crackdown with 65,000 Warning Letters
HM Revenue & Customs (HMRC) has escalated its scrutiny of cryptocurrency transactions, dispatching 65,000 'nudge letters' to suspected tax evaders in the 2024–25 fiscal year—a 134% surge from the previous period. The campaign targets unreported gains from crypto sales, trades, or expenditures, leveraging data shared by exchanges under enhanced compliance protocols.
Seven million UK adults now hold digital assets, up from five million in 2022, amplifying regulatory urgency. The forthcoming crypto Asset Reporting Framework (CARF), effective 2026, will facilitate cross-border tax data sharing, further tightening oversight. 'The volume of traders misunderstanding obligations is alarming,' notes Neela Chauhan of UHY Hacker Young, underscoring HMRC's sharpened detection capabilities.
