What’s changed?
From 1 January, people who use cryptocurrency in the UK must now share their personal details with crypto platforms, and those platforms must automatically pass information to HM Revenue & Customs (HMRC).
This applies whether you use crypto a little or a lot.
If the information is not provided, penalties can apply.
Why is this happening?
HMRC already taxes cryptocurrency, but until now it relied mostly on people telling HMRC themselves.
The government believes that many crypto profits have not been declared, especially when prices rose sharply in recent years (for example when Bitcoin prices surged and then fell).
The new system means HMRC will receive the information automatically, similar to how banks report interest.
What information will crypto platforms collect?
Crypto exchanges (the websites or apps you buy and sell crypto on) must now collect and report:
- Your full name
- Your address
- Your date of birth
- Your UK tax number (such as a National Insurance number)
- Details of your crypto transactions, including:
- What you bought or sold
- When you did it
- How much it was worth
You don’t send this to HMRC yourself — the exchange does it automatically.
Does this mean crypto is newly taxed?
No.
Crypto has been taxable in the UK for several years.
What’s changed is enforcement, not the tax itself.
You may owe tax if you:
- Sold crypto for more than you paid
- Exchanged one crypto for another
- Used crypto to buy goods or services
- Earned crypto from mining, staking, or rewards
What tax might I have to pay?
Most people are affected by Capital Gains Tax (CGT).
In simple terms:
- If you buy low and sell high, the profit may be taxable
- You get a tax-free allowance
- Only profits above that allowance are taxed
Some crypto income (like mining or staking) may instead be subject to Income Tax.
What happens if I do nothing?
If:
- You don’t give correct details to your crypto platform, or
- You don’t declare taxable gains on your tax return
then:
- HMRC may already have the data
- You could face fines, interest, and back-dated tax
- In serious cases, HMRC can open a formal investigation
Crypto platforms themselves can also be fined if they fail to report users correctly.
Do I need to do anything right now?
For most people, the key steps are simple:
✔ Make sure your crypto accounts have correct personal details
✔ Keep records of what you buy and sell
✔ Declare crypto gains on your Self Assessment tax return if required
If you’re unsure whether you need to file, it’s worth getting advice early — especially if you’ve traded over several years.
Can HMRC see old crypto activity?
HMRC is increasingly using:
- Historical data requests
- Information from overseas platforms
- Data-matching tools
So even past crypto activity may come to light later.
The bottom line
Think of crypto platforms like banks now:
- They report to HMRC
- HMRC joins the dots
- Undeclared gains are harder to hide
If you’ve made money from crypto, the safest approach is to check your position and get compliant sooner rather than later.
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