Crypto users forced to share account details with tax officials

"People buying cryptocurrency in the UK now need to share their account details or face penalties, in changes that came into effect on 1 January. The move by the UK's tax body is designed to ensure they pay all relevant tax on buying and selling crypto, including capital gains tax. HMRC will begin automatically collecting information on all users of cryptocurrency exchanges - which are effectively the industry's banks - in a bid to start collecting tens of millions in unpaid tax."

"The value of Bitcoin, which is often seen as a barometer of the entire industry, surged from about $93,500 (69,500) a coin at the start of 2025 to a high of nearly $124,500 before falling below $90,000 by the end of the year. Investors who bought when the value was lower and sold when it was higher are in line to pay taxes, but authorities have historically struggled to collect it, says Dawn Register, a tax dispute resolution partner at accountancy firm BDO."

"The new rules coming in will make it much harder for the crypto rich to hide any untaxed gains, giving the tax authorities much more information about crypto users and their transactions. Cryptocurrency exchanges, which act like banks for the industry allowing people to exchange standard currency for virtual coins, must now ensure they automatically share up to date and accurate accounts of all their users' earnings. If not, fines may be imposed."

From 1 January, UK tax authorities will automatically collect account information from cryptocurrency exchanges to enforce payment of taxes, including capital gains tax. Exchanges must provide up-to-date, accurate records of users' earnings and can face fines for failing to do so. The rules implement the Cryptoasset Reporting Framework (CARF), aligning the UK with many other countries and enabling international information sharing between tax authorities. Large Bitcoin price swings in 2025 created taxable gains for many investors, and authorities have historically struggled to collect such taxes. Regulators are consulting on tougher industry rules, including measures to curb insider trading.

Read at www.bbc.com