Users must report crypto activity to avoid fines

From January 2026, crypto owners must provide details to tax services or face fines.

Crypto owners face fines under new HMRC rules

From January 2026, anyone who owns cryptocurrency, such as Bitcoin and Ethereum, will be required to share their personal details with every crypto service provider they use. This change is part of a new rule by HM Revenue and Customs (HMRC) to ensure that individuals are paying the correct amount of tax on their crypto profits. Those who do not comply may face a £300 fine. The initiative aims to close the tax gap and is expected to generate up to £315 million in tax revenue by April 2030, enough to fund over 10,000 newly-qualified nurses for a year. Service providers will be penalized as well if they fail to report users' data accurately.

This new regulation reflects a significant shift in how cryptocurrencies are monitored for tax purposes. By requiring personal information from crypto owners, HMRC aims to enhance compliance and reduce tax evasion among this growing sector. The revenue generated from this initiative could provide vital funding for essential public services, indicating a strategic move by the government to bolster public finances while addressing the challenges posed by the unregulated nature of many crypto assets. The emphasis on accountability may also change the perception of cryptocurrencies as a completely anonymous asset class.

Highlights

The impact of these rules will be closely monitored as the 2026 deadline approaches.