Cryptocurrency holders warned about new rules to unmask anyone dodging tax

Cryptocurrency holders are being warned by HM Revenue and Customs (HMRC) that new reporting requirements will help to unmask those trying to evade tax due on their profits.

From January 2026, people who own crypto, such as Bitcoin, Ethereum or Dogecoin, must give personal details to each crypto service provider they use to make sure they are paying the right tax.

Those who do not comply risk a £300 fine from HMRC.

Once data is received from service providers, HMRC will identify those who have not been correctly paying tax on their crypto profits.

The move is part of a wider drive by HMRC to tackle non-compliance.

Service providers will start collecting data on users’ activities from January 2026. Any service provider that fails to report this information, or submits inaccurate or incomplete reports, could also be charged a penalty of up to £300 per user by HMRC, the revenue body said.

The new rules are known as the Cryptoasset Reporting Framework.

Capital gains tax may be due when selling or exchanging crypto, while income tax and national insurance could apply to crypto received from employment, mining, staking or lending activities.

People who are unsure about their tax obligations can check if they need to pay tax when they receive or sell crypto on gov.uk. They can also tell HMRC about unpaid tax on crypto using the cryptoasset disclosure service.

James Murray, Exchequer Secretary to the Treasury, said: “By ensuring everyone pays their fair share, the new crypto reporting rules will make sure tax dodgers have nowhere to hide, helping raise the revenue needed to fund our nurses, police and other vital public services.”

Jonathan Athow, HMRC’s director general for customer strategy and tax design, said: “Importantly, this isn’t a new tax – if you make a profit when you sell, swap or transfer your crypto, tax may already be due.

“These new reporting requirements will give us the information to help people get their tax affairs right.

“I urge all cryptoasset users to check the details you will need to give your provider. Taking action now and having this information to hand will help you avoid penalties in the future.”