UK tax authority doubles crypto warning letters in crackdown on unpaid gains

HM Revenue & Customs (HMRC) significantly increased its scrutiny of crypto investors, issuing nearly 65,000 "nudge letters" in the 2024–25 tax year, more than double the 27,700 sent the previous year. These letters aim to prompt voluntary correction of tax filings related to digital asset gains before formal investigations begin. This surge reflects HMRC's growing focus as an estimated seven million UK adults now own crypto. Experts note that many traders misunderstand the complexity of crypto tax rules, including capital gains tax triggers from simple coin-to-coin transfers. HMRC's visibility is improving as it receives transaction data from major exchanges and will gain automatic access to global data via the OECD’s Crypto-Assets Reporting Framework (CARF) starting in 2026. This UK action follows similar intensified crackdowns on crypto tax evasion in other jurisdictions, such as South Korea.

(Source：Cointelegraph)