UK Officially Begins Crackdown on Crypto Tax Evasion

The United Kingdom has taken a decisive step to bring crypto asset activity fully into the tax system. New rules that came into force this week aim to stop undeclared income from digital assets and close long-standing gaps in enforcement. 

By ending anonymity and using automated reporting, authorities are showing that crypto profits will now be checked just like other financial assets.

New Reporting Rules Change Crypto Oversight

Under the new rules, crypto exchanges in the UK must start collecting detailed transaction data from users from January 1. This includes purchase prices, sale values, capital gains, and relevant tax information. 

The exchanges must send this data directly to HM Revenue and Customs. The goal is to improve transparency and give tax officials a clearer view of crypto activity, especially where transactions involve multiple countries. 

This initiative comes as concerns about unreported crypto gains in the UK have been growing for several years. Although crypto assets are already subject to tax, enforcement has proven difficult. 

Regulators say too many investors are not following the rules. Many people do not understand their tax duties or choose to ignore them. Leaders in the financial sector have raised concerns, warning that more young investors are shifting from stocks to digital assets.

This trend has increased the need for clearer and stricter tax rules. Since then, the government has taken steps to strengthen its approach to crypto taxation.

Part of a Global Crypto Reporting Framework

The UK rules are part of the Cryptoasset Reporting Framework created by the Organisation for Economic Co-operation and Development (OECD). This system sets global standards for how crypto transactions are reported and shared between tax authorities.

The United Kingdom is among the first 48 countries to implement the framework. While exchanges will begin collecting data immediately, the automatic sharing of this information between countries will start in 2027. 

To further tighten oversight, the United Kingdom and the United States formed a joint task force in September 2025. The group focuses on improving anti-money laundering (AML) rules and supervision of crypto companies operating across both countries. 

This cooperation reflects a wider international push. So far, 75 countries have agreed to implement the reporting framework. Major financial hubs such as Singapore, Switzerland, Hong Kong, and the United Arab Emirates are expected to begin reporting later in the year.

Global Pressure Builds on Crypto Investors

The United States is also increasing its focus on crypto taxation. American authorities are reviewing plans that would allow the IRS to track and tax crypto held overseas. 

Although some political leaders have discussed removing taxes on cryptocurrency, no new legislation has been passed. This fits a global push to end secrecy in digital asset markets and marks a major shift in crypto regulation. Regulators are making it clear that digital assets are now fully covered by tax laws.