UK Tax Office Flooded with Crypto Warnings Over Unpaid Gains

UK tax authorities have nearly tripled warnings sent to cryptocurrency investors suspected of owing unpaid capital gains tax, according to reports. The 2025-26 financial year saw a surge in these warnings, with 81,172 letters, emails, and text messages issued by the tax office.

This figure almost tripled from the previous two years, when 27,714 warnings were sent out between 2023 and 2024. The increase is linked to sharp rises in cryptocurrency values during a bull run that took place from December 2022 to October 2025, where Bitcoin's price climbed from around $16,500 to a peak of roughly $126,000.

The warnings target profits made from selling cryptocurrencies or swapping one for another, with investors at risk of facing fines and prosecution if they fail to declare these gains. The tax office is urging investors to come forward and report their earnings voluntarily to avoid penalties.