UK to Impose Fines on Crypto Tax Evaders Under New Reporting Rules Starting 2026

The United Kingdom is increasing scrutiny on crypto tax evasion. The country has announced a new regulatory measure that will require digital asset platforms and investors to disclose detailed financial and personal information starting January 2026. It is part of the broader crackdown aimed at narrowing down the nation’s tax gap and increasing funding for essential public services.

HM Revenue and Customs (HMRC) revealed the new Cryptoasset Reporting Framework on Monday. The framework mandates that all crypto service providers report and collect data about users’ identities and transactions. The information includes names, addresses, national insurance numbers or tax references, and summaries of their crypto activity. This measure puts the UK in line with international tax rules set by the Organization for Economic Co-operation and Development (OECD), which makes it easier for tax authorities throughout the world to work together.

UK Imposes Strict Penalties for Non-Compliance

Under the new rules, investors who fail to comply with the data-sharing requirements face penalties of up to £300 ($409). Digital asset platforms and exchanges that don't publish this information correctly could also be fined. HMRC said that the policy should bring in £315 million ($477 million) by April 2030. That money could pay for more than 10,000 newly qualified nurses for a year.

“By ensuring everyone pays their fair share, the new crypto reporting rules will make sure tax dodgers have nowhere to hide. We are going further and faster to close the tax gap and deliver on our Plan for Change,” said James Murray, Exchequer Secretary to the Treasury.

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Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design, clarified that the framework does not impose new taxes but rather improves the enforcement of existing obligations. “These new reporting requirements will give us the information to help people get their tax affairs right,” he stated. He also urged crypto investors to prepare their data to avoid future penalties.

The new tax reporting regime is just one element of a larger regulatory effort to bring clarity and structure to the UK’s growing crypto industry. In May, the Financial Conduct Authority (FCA) released a Discussion Paper outlining plans for a more comprehensive crypto oversight model. It solicited public feedback on potential rules governing crypto exchanges, intermediaries, staking, lending, and decentralized finance (DeFi).

Earlier this year, HM Treasury also published a draft legislative framework with provisions designed to incorporate exchanges, brokers, and agents into the regulatory perimeter, promoting transparency, consumer protection, and operational resilience across the digital asset sector.

By introducing these measures, the UK aims to strike a balance between clamping down on illicit activity and supporting legitimate innovation. As global adoption of crypto assets continues to expand, UK regulators are making it clear that the era of tax-free crypto profits is coming to an end.