HMRC Issues Record Number of Crypto Tax Warnings

The UK's HM Revenue and Customs (HMRC) has sent out a record number of tax warning letters to crypto investors. According to figures, 81,172 warnings were issued in the 2025/26 financial year, up from 64,982 during the previous year.

HMRC treats various cryptocurrency activities as potential taxable disposals for investors, including sales, swaps, purchases, and gifts. The agency has been cracking down on undeclared liabilities that may have arisen due to increased gains accumulated between late 2022 and 2025.

The new reporting framework, introduced in January 2026, requires service providers to collect customer information and submit reports to HMRC by May 31, 2027. This includes details such as names, addresses, tax residences, and tax identification numbers.