UK tax authority sends 65,000 letters to suspected crypto tax evaders, more than double last year’s count: FT

HM Revenue & Customs (HMRC), the UK tax authority, has issued 65,000 'nudge' letters to individuals suspected of tax avoidance or evasion related to their cryptocurrency holdings, representing a 134% increase over the prior year, according to data obtained by UHY Hacker Young via a Freedom of Information Act request and reported by the Financial Times. HMRC is likely using data received directly from crypto exchanges to identify these cases, a trend seen globally, such as in India. Furthermore, starting in January 2026, HMRC will receive detailed user information from exchanges under the OECD's Crypto-Assets Reporting Framework (CARF). The UK's crypto tax rules treat most personal crypto as an investment, making sales or swaps subject to Capital Gains Tax (CGT), with rates recently increased. Separately, the UK regulator recently lifted a four-year ban on crypto-based exchange-traded notes (ETNs), potentially boosting the domestic crypto industry.

(Source：The Block)