UK Tax Authority Intensifies Crypto Crackdown, Targeting 65,000 Traders
HM Revenue & Customs (HMRC) has escalated its scrutiny of cryptocurrency traders, issuing 65,000 'nudge' letters to UK residents suspected of underreporting crypto profits for the 2024-25 tax year—more than double the previous year's campaign. The move signals a tougher stance on undeclared digital-asset gains under the new Labour government.
Capital gains tax now applies to crypto sales, token swaps, purchases, and gifts, with falling CGT allowances dragging more traders into the tax net. Self Assessment forms now feature a dedicated crypto section, streamlining both reporting and enforcement as HMRC gains deeper access to exchange data.
With 12% of British adults holding crypto assets, the crackdown casts a wide net. Market participants face heightened compliance risks as regulators globally tighten oversight of the $2T digital asset class.
