UK Cryptocurrency Users Must Share Account Details with HMRC Under New Regulations

Cryptocurrency users in the United Kingdom are now required to share their account details with tax authorities following regulations that took effect on 1 January. The measures introduced by HM Revenue and Customs aim to ensure full compliance with tax obligations, including capital gains tax on cryptocurrency transactions.

HMRC has begun automatically collecting information on all users of cryptocurrency exchanges, which function as the industry’s banking infrastructure. The tax authority anticipates collecting tens of millions of pounds in previously unpaid tax through this initiative. The regulatory tightening coincides with ongoing Financial Conduct Authority consultations on strengthened industry oversight, including provisions to prevent insider trading.

Bitcoin, widely regarded as a bellwether for the broader cryptocurrency market, experienced significant volatility throughout early 2025. The digital currency climbed from approximately $93,500 per coin at the start of the year to nearly $124,500 before declining below $90,000 by year end. Investors who realised gains during this period face tax liabilities that authorities have historically struggled to collect.

Dawn Register, a tax dispute resolution partner at accountancy firm BDO, notes that HMRC has expressed concern regarding widespread non-compliance amongst cryptocurrency investors. The new regulatory framework substantially reduces opportunities for cryptocurrency holders to conceal untaxed gains by providing tax authorities with comprehensive information about users and their transactions.

Cryptocurrency exchanges must now automatically share current and accurate records of all user earnings. Non-compliance may result in financial penalties. The Cryptoasset Reporting Framework regulations are being implemented across dozens of countries, facilitating international cooperation and information sharing amongst tax authorities.

HMRC estimates that thousands of cryptocurrency owners in the United Kingdom maintain unpaid tax obligations. The revenue authority projects the new rules will generate at least £300 million over the next five years. Register advises that individuals who realised cryptocurrency gains during the 2024-25 financial year may need to file tax returns before the 31 January deadline using a dedicated section in the self-assessment form.

The tax authority is encouraging voluntary disclosure for individuals with unpaid tax from previous years. HMRC operates a disclosure facility enabling taxpayers to declare previously unreported gains and unpaid tax liabilities prior to April 2024.

The Financial Conduct Authority is conducting a public consultation until 12 February on additional proposed cryptocurrency regulations. These include standards for cryptocurrency exchanges, requirements ensuring brokers act responsibly, and rules governing cryptocurrency lending and borrowing activities.

David Geale, the authority’s executive director for payments and digital finance, stated that the regulatory objective is to establish a framework protecting consumers whilst supporting innovation and promoting trust. The FCA has invited feedback to finalise the proposed rules.