UK Crypto Users Required to Share Account Details with Tax Authorities Under New Rules
Published: January 1, 2026 — By Rachel Clun, BBC Business Reporter
Starting from January 1, 2026, individuals in the UK buying and selling cryptocurrency must now share account details with the tax authorities or face penalties. This significant change, introduced by Her Majesty’s Revenue and Customs (HMRC), aims to ensure crypto investors pay all applicable taxes, including capital gains tax, on their digital asset transactions.
Automatic Information Gathering from Crypto Exchanges
Under the new regulations, HMRC will begin automatically collecting data from cryptocurrency exchanges—platforms that function similarly to banks within the industry. These exchanges are now mandated to maintain accurate and up-to-date records of their users’ earnings and must share this information directly with the tax authorities. Failure to comply may result in fines for the exchanges.
Dawn Register, tax dispute resolution partner at BDO, explained the rationale behind this move:
"HMRC has been concerned for some time about high levels of non-compliance among crypto investors. These new rules will significantly reduce the ability of crypto holders to conceal untaxed gains, providing HMRC with much greater visibility into crypto transactions."
Impact on UK Crypto Investors
The update comes amid fluctuating cryptocurrency values, with Bitcoin—a key industry benchmark—seeing a surge from approximately $93,500 (£69,500) at the start of 2025 to nearly $124,500 before falling below $90,000 by the end of the year. Investors who bought Bitcoin or other cryptocurrencies when prices were lower and sold when prices were higher may owe capital gains taxes on their profits.
Historically, collecting tax on crypto gains has presented challenges for authorities due to the anonymous and decentralized nature of the digital assets. HMRC estimates that thousands of UK residents currently have unpaid tax on cryptocurrency earnings and expects the new rules to help recover at least £300 million over the next five years.
Filing Requirements and Encouragement for Voluntary Disclosure
Individuals who made gains from crypto transactions in the 2024-2025 financial year may need to submit a tax return by January 31, 2026. HMRC has introduced a dedicated section on the tax self-assessment form for this purpose.
Ms. Register also highlighted that HMRC is promoting voluntary compliance:
"The tax authority has set up a disclosure facility allowing taxpayers to come forward and correct undeclared gains and unpaid tax prior to April 2024 without facing as severe penalties."
International Cooperation and Regulatory Consultations
These new rules are part of the broader implementation of the Cryptoasset Reporting Framework (CARF), which many countries worldwide are adopting to improve cross-border tax transparency relating to cryptocurrencies. This global cooperation is expected to enhance the ability of tax authorities to share and verify information internationally.
In parallel, the UK’s Financial Conduct Authority (FCA) is conducting a public consultation, open until February 12, on additional proposed regulations. These include new standards for crypto exchanges, responsible broker behavior, and rules governing crypto lending and borrowing.
David Geale, the FCA’s executive director for payments and digital finance, commented last month:
"Regulation is coming. Our goal is to establish a regime that protects consumers, supports innovation, and builds trust in the digital finance sector. We welcome feedback to help finalise these rules."
Summary
The UK government’s decision to mandate cryptocurrency users to share account details with tax officials marks a major step toward increasing compliance in the digital assets space. By compelling crypto exchanges to reveal user earnings and strengthening international cooperation, HMRC aims to close tax loopholes and ensure investors meet their obligations in an evolving financial landscape.
For more information on filing obligations and regulatory developments, crypto investors can contact HMRC or consult with tax professionals experienced in digital assets.
Additional reporting by Joe Tidy