HMRC Tightens Crypto Tax Compliance, Demands User Data from Platforms
The UK's HM Revenue & Customs (HMRC) has mandated cryptocurrency platforms to disclose detailed user information in a bid to recover an estimated £300 million in unpaid taxes. Non-compliance could result in penalties for both platforms and users.
New guidelines require exchanges to collect and share identifying data—including names, birthdates, tax IDs, and addresses—to LINK crypto transactions with individual tax records. This measure targets Capital Gains Tax (CGT) evasion, particularly from traders profiting from volatile digital asset markets.
The rules apply universally to platforms facilitating crypto trades, transfers, or exchanges, extending beyond currencies to all digital assets. This initiative aligns with the global Cryptoasset Reporting Framework (CARF), signaling heightened regulatory scrutiny on the industry.
