UK Crypto Users Start Sharing Their Account Details with Tax Body

UK crypto traders will face tighter reporting rules from the start of the year as tax authorities move to close long-standing gaps in compliance. As of 1 January, individuals using crypto platforms must provide complete account information, or risk incurring penalties.

The changes form part of a broader effort by HMRC to ensure taxes linked to crypto activity are properly paid.

Under the new framework, HMRC will begin receiving detailed and regular information directly from crypto exchanges. These platforms operate as the main gateways for buying, selling, and holding digital coins, much like banks do for traditional money.

The move comes at a time of significant price volatility in the crypto market. Bitcoin, often viewed as an indicator of wider market trends, rose sharply early in 2025. It climbed from roughly $93,500 at the beginning of the year to $124,500 before dropping to below $90,000 by year-end. The price swings created substantial profits for some investors, many of whom may now face tax bills if gains were realized.

Dawn Register, a partner at BDO who specializes in tax disputes, says authorities have long been uneasy about the level of under-reporting among crypto investors. In her view, the latest measures will make it far more difficult for high-value traders to conceal profits that should be taxed.

The regulations follow the Cryptoasset Reporting Framework, an international standard being adopted across dozens of countries. Officials believe the global approach will make it easier for tax agencies to share information and track assets held across borders.

HMRC estimates that many thousands of UK residents may have outstanding tax linked to digital assets. It expects the new system to generate at least $406.9 million (£300 million) in additional revenue over the next few years.

Register also notes that anyone who made taxable crypto profits during the 2024/25 tax year may need to submit a self-assessment return by 31 January. A new section has been added to the form specifically for digital asset activity. She adds that HMRC is encouraging people with unpaid tax from earlier years to come forward voluntarily. A disclosure service is available for those wishing to correct past omissions related to gains made before April 2024.

Alongside the tax changes, the Financial Conduct Authority (FCA) is reviewing broader regulation of the crypto sector. A public consultation is open until February 12 and covers proposals on exchange standards, broker conduct, and rules for crypto borrowing and lending.

David Geale, the FCA’s executive director for digital finance and payments, has said the aim is to protect consumers while allowing innovation to continue, adding that public feedback will help shape the final rules.

As crypto regulations evolve in different markets, industry actors like Circle Internet Group Inc. (NYSE: CRCL) will be keeping track to ensure that they don’t breach any applicable regulations in the markets where they have operations.

About CryptoCurrencyWire

CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.CryptoCurrencyWire.com

Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer

CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com

CryptoCurrencyWire is powered by IBN