UK Tax Authority Targets 65,000 Crypto Investors in Major Compliance Push
The UK's HM Revenue & Customs (HMRC) has escalated its scrutiny of cryptocurrency investors, issuing 65,000 'nudge letters' to individuals suspected of underreporting digital asset taxes. Data obtained by UHY Hacker Young reveals a 134% surge in these warnings, which precede formal investigations.
HMRC's information comes directly from cryptocurrency exchanges, marking a significant step in regulatory oversight. The agency is preparing for broader enforcement under the Crypto-Asset Reporting Framework (CARF), set to take effect in January 2026. This global initiative, adopted by approximately 70 jurisdictions, will require exchanges to share comprehensive user data with tax authorities.
In the UK, most crypto transactions are treated as taxable events under Capital Gains Tax rules. The crackdown reflects growing institutional efforts to bring transparency to digital asset markets while maintaining their growth potential.
