UK Crypto Users Must Share Account Details with Tax Authorities Under New Rules
London, 1 January 2026 — Starting today, individuals in the UK who buy or sell cryptocurrency are legally required to provide their account details to Her Majesty’s Revenue and Customs (HMRC), the country’s tax authority. This new regulation aims to clamp down on unpaid taxes in the growing crypto market and is part of wider government efforts to tighten oversight of digital assets.
Ensuring Tax Compliance on Crypto Gains
The updated rules require cryptocurrency exchanges—platforms that function like banks for crypto transactions—to automatically share up-to-date and accurate information about their users’ earnings with HMRC. Failure to comply could result in fines for these exchanges.
HMRC intends to use this information to identify individuals who owe capital gains tax and other liabilities arising from trading and investments in cryptoassets. Dawn Register, a tax dispute resolution partner at BDO accountancy firm, highlighted that the HMRC has long been concerned with widespread non-compliance among crypto investors. “The new measures will make it much harder for the crypto rich to hide untaxed gains,” she said.
Automatic Information Sharing and International Cooperation
The implementation of the Cryptoasset Reporting Framework (CARF) aligns the UK with many other countries adopting similar measures. This international cooperation will aid tax authorities worldwide in exchanging information and tackling tax evasion related to cryptocurrencies.
HMRC estimates that thousands of UK residents owning cryptocurrency may have outstanding tax bills. The tax body is targeting at least £300 million in additional revenue from crypto transactions over the next five years.
Deadlines and Voluntary Disclosures
Investors who made gains in the financial year 2024-25 may now be required to file a tax return by 31 January 2026, using a new designated section of the self-assessment form for crypto transactions. Those with undeclared gains from previous years are encouraged to come forward voluntarily.
“HMRC is running a disclosure facility that allows taxpayers to correctly report unpaid taxes on crypto gains prior to April 2024,” Register explained, emphasizing the opportunity for individuals to “come clean” without severe penalties.
Broader Regulatory Developments in the Crypto Sector
In parallel with tax reporting rules, the Financial Conduct Authority (FCA), the UK’s financial watchdog, is consulting the public on stricter regulations for the crypto industry until 12 February. Proposed measures include introducing standards for crypto exchanges, imposing responsibilities on brokers, and regulating crypto lending and borrowing activities.
David Geale, FCA’s Executive Director for Payments and Digital Finance, reaffirmed the FCA’s commitment to consumer protection and innovation. “Our goal is to have a regime that protects consumers, supports innovation and promotes trust,” he said.
Market Context: Volatile Bitcoin Prices
These regulatory moves come amid continued volatility in the cryptocurrency market. Bitcoin, often regarded as an indicator of crypto industry health, saw its price rise sharply from approximately $93,500 (£69,500) per coin in early 2025 to almost $124,500 at its peak later that year, before dropping below $90,000 by year-end. Such fluctuations have created taxable events for many investors who bought low and sold high, though collecting the correct tax has been challenging until now.
Conclusion
The UK government’s decision to require crypto accounts information sharing with HMRC marks a significant step toward bringing cryptocurrency trading under mainstream financial regulatory frameworks. This aims not only to recover tax revenue but also to foster a safer and more transparent market for digital assets. Cryptocurrency investors in the UK are advised to carefully review their tax obligations and submit accurate returns by the upcoming deadlines to avoid penalties.
For more information, taxpayers can visit the HMRC website or consult with a tax professional knowledgeable in cryptocurrency reporting.