UK to crack down on ‘Crypto Bro’ tax dodgers with new reporting rules
UK to crack down on ‘Crypto Bro’ tax dodgers with new reporting rules
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HM Revenue and Customs (HMRC) is set to implement sweeping new rules from January 2026 that will make it harder for crypto investors to avoid paying tax on their digital assets. The move is expected to bring in up to £315 million in tax revenue by April 2030, funds that could support over 10,000 newly qualified nurses for a year.
Under the Cryptoasset Reporting Framework, individuals who trade cryptocurrencies such as Bitcoin, Ethereum, or Dogecoin will be required to provide personal and tax details to every crypto service provider they use. These providers will, in turn, be legally obligated to report this information to HMRC.
Failing to comply could result in penalties of up to £300 per individual for both users and service providers who either withhold, submit incomplete or inaccurate data.
James Murray MP, Exchequer Secretary to the Treasury, said: “We’re going further and faster to crack down on tax dodgers as we close the tax gap and deliver on our Plan for Change. These 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.”
Crypto platforms will be required to collect and share the following user details with HMRC:
- Full name, address, and date of birth
- Tax residency
- National Insurance number or UK tax reference
- A summary of crypto transactions
The rules, in line with the OECD’s international standard, will also enable HMRC to exchange information with other tax authorities globally, ensuring greater transparency in the digital asset economy.
Jonathan Athow, HMRC Director General for Customer Strategy and Tax Design, said: “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.”
While the new framework strengthens enforcement, UK crypto users are already required to declare any gains or income from crypto activity in their Self Assessment tax returns. Dedicated sections for crypto transactions are being introduced from the 2024–2025 tax year.
Tax obligations can include:
- Capital Gains Tax for profits from selling or exchanging crypto
- Income Tax and National Insurance for crypto received via employment, mining, staking or lending
Anyone unsure of their tax status can check their obligations or disclose unpaid taxes using HMRC’s Cryptoasset Disclosure Service on GOV.UK.
The changes form part of HMRC’s wider effort to reduce tax non-compliance and ensure that everyone contributes fairly to the UK economy.
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