UK’s new crypto tax: for the past years, the world of cryptocurrencies has evolved in a regulatory gray zone, allowing many investors to escape tax law. This period of anonymity will now come to an end. From January 2026, the United Kingdom will introduce a stricter regulatory framework, forcing crypto platforms to report all the transactions of their UK-resident users.
This initiative is part of the OECD Cryptoasset Reporting Framework (CARF), which aims to automate information exchange between tax administrations and strengthen transparency in the digital asset sector.
UK’s new crypto tax: Crypto platforms’ liabilities
The HMRC (His Majesty’s Revenue and Customs) now forces crypto providers to collect and transmit:
- First and last name of users
- Their address and country of residence
- The addresses of their wallets
- The complete history of their transactions
The first reports will have to be transmitted before May 31st, 2027 in order to cover the previous year. In case of non-conformances, users and platforms could be confronted with fines reaching up to £300 per client.
Jonathan Athow, client strategy and tax law chief executive at the HMRC, highlights that these liabilities will allow taxpayers to even out their tax status and authorities to look into their transactions.
UK’s new crypto tax: costs and expected revenues
The British government estimates that the deployment cost for the HMRC will be around 69 million pounds, mainly for computing infrastructure and support systems. For platforms, the annual compliance cost will be around £800,000.
In spite of these investments, the HMRC expects 315 million pounds in additional tax revenues by April 2030. This approach is inspired by traditional banking practices, where automatic information exchange (CRS) has been in place since 2014.
UK’s new crypto tax: reinforced control over individuals
Before these reforms, HMRC relied on voluntary declarations. The liability for platforms to directly declare their transactions significantly upgrades the government’s capacities of control. This year, more than 65,000 letters have already been sent to crypto holders to remind them to report their capital gains.
The voluntary declaration service (CDS) also allows holders to regularize their tax situation with reduced penalties. James Murray, Secretary of the Treasury, mentions that these measures aim to fight against fraud, reduce the tax gap, and produce tax revenues for essential public services, especially in the health and security sectors.
UK’s new crypto tax: a global trend
The OECD estimates that 55 to 95% of crypto holders in the world could be related to tax fraud. The UK is not alone in this enterprise, and is acting in coordination with 50 countries, including EU members, Canada, Australia, Japan, and South Korea, to create an international information-exchange network.
Seb Maley, Qdos’ CEO (tax insurance), explains that the information collected by these platforms from January 1st, 2026, will allow the HMRC to compare transactions and income tax returns and detect anomalies easily. Individuals will be able to organize their assets until the end of 2026, before inspections start in 2027.
UK’s new crypto tax: a reinforced taxation framework for DeFi
The government has also introduced a ‘no gain, no loss’ tax system which applies to decentralized finance (DeFi). It allows delaying taxation of gains as long as the underlying tokens are not sold, a measure usually well received by the sector.
This British initiative comes in the context of a global trend:
- South Korea: the tax administration announced the seizure of crypto assets on cold wallets and raids if fraud is suspected.
- Spain: a motion to increase maximum taxation rates on crypto gains to 47%.
- Switzerland: progressive deployment of CARF regulation from 2027.
- USA: draft bill ‘Bitcoin for America Act’ to allow paying federal taxes in Bitcoin, not subject to capital gains taxation.
Conclusion
The anonymity period in the crypto sector comes to an end. Platforms and investors now have to be prepared for more control and transparency. This reform reflects the UK’s will to secure tax revenue while staying aligned with transnational financial standards in the crypto sector.
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