HM Revenue & Customs (HMRC), the UK agency responsible for tax collection and customs, has increased its efforts to ensure that crypto investors follow the rules by sending out almost 65,000 reminder letters during the 2024–25 tax year.
This number shows a big rise from the 27,700 letters sent last year, making the total over 100,000 letters sent in the past four years. These letters aim to encourage investors to fix any undeclared capital gains from their cryptocurrency transactions.
HMRC uses transaction data from UK crypto exchanges to find errors in tax reporting for this initiative. Any disposals, like coin swaps, are taxable events according to capital gains tax rules.
Beginning in 2026, the OECD’s Crypto-Assets Reporting Framework will help HMRC better track crypto transactions around the world by sharing data automatically.
