HMRC Cracks Down on UK Crypto Investors Ahead of Global Tax Reporting Framework

The UK's tax authority, HMRC, has been cracking down on crypto investors. Over the past year, they sent out over 81,000 warning letters to those who may have underpaid taxes on their digital assets. This is a sharp increase from just two years ago, when fewer than 30,000 such letters were sent.

HMRC's efforts are part of a broader effort by governments around the world to get a handle on crypto taxation. The OECD's Cryptoasset Reporting Framework (CARF) will come into effect in 2027, requiring countries to share information about their residents' crypto holdings. This is expected to make it much harder for people to avoid paying taxes on their digital assets.

According to Neela Chauhan of UHY Hacker Young, many crypto investors are young and inexperienced with tax authorities. They may think that their activities won't be noticed, but HMRC has been getting more aggressive in its pursuit of unpaid taxes. In fact, the agency recovered over £8.3 million from crypto-related settlements between 2024-25 and 2025-26.