UK Tightens Crypto Tax Rules to Boost Compliance and Revenue

The UK government is cracking down on cryptocurrency tax evasion with new regulations designed to close reporting gaps and increase transparency. Under the Cryptoasset Reporting Framework, traders and investors must now provide identifying information to exchanges, aligning the UK closer to the US approach on crypto taxation.

Capital gains tax on crypto profits has been inconsistently enforced due to inadequate data sharing between platforms and authorities. The Treasury estimates £315 million in additional revenue by 2030—funds earmarked for public services like healthcare and policing.

Non-compliance carries penalties: individuals face fines up to £300 for obfuscating holdings, while platforms risk sanctions for failing to verify user data. This MOVE signals a broader institutional push to formalize oversight of digital assets.