Until now, HMRC had to formally request transaction data from crypto platforms on a case-by-case basis. Under the new rules, that will change. HMRC will have unlimited access to crypto transaction data, enabling it to more easily identify individuals who haven’t declared gains or income from cryptoassets.
This development forms part of the UK’s adoption of the OECD’s Crypto Asset Reporting Framework (CARF) – a global initiative aimed at improving transparency and ensuring cryptoassets are subject to the same level of reporting as traditional financial instruments. Under CARF, crypto platforms will be required to share client transaction details with tax authorities.
As part of these changes, UK-based crypto holders will also be required to provide personal details to the platforms they use. Failure to do so could result in a penalty of up to £300 from HMRC.
Disclosure already required for 2024-25 tax year
While full platform reporting doesn’t begin until 2026, HMRC is already increasing scrutiny on crypto investors. For the 2024/25 tax year, individuals are required to report all crypto gains and income on their Self Assessment tax returns, with crypto now having its own dedicated section within the capital gains pages.
In addition, HMRC has started issuing ‘nudge letters’ to taxpayers it suspects may not have reported crypto-related income correctly in previous years. These letters are intended to encourage voluntary compliance before further action is taken.
What this means for UK crypto investors
With growing international cooperation and tighter domestic rules, HMRC is closing the gap on undeclared digital wealth. If you’re investing or trading in crypto, now is the time to:
- Ensure your records are up to date
- Report any gains or income correctly in your Self Assessment
- Stay informed about upcoming regulatory changes
With more transparency and data-sharing between platforms and tax authorities, non-compliance is becoming increasingly risky.
Find out more
You can read more in our tax on crypto guide here.
Self Assessment tax return service for crypto
If you need support with your crypto tax obligations, please contact us. Our experienced team can provide a tailored quote for preparing and filing your tax return.
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