Crypto tax evaders to face fines in the United Kingdom

UK Cracks Down on Crypto Tax Evasion with New Fines

The UK government is tightening tax enforcement on cryptocurrency traders, introducing fines for non-compliance under the Cryptoasset Reporting Framework.

Key Changes

• Fines up to £300 for traders who fail to disclose personal details to crypto service providers.
• Service providers must also share accurate transaction and tax reference data or face penalties.
• Rules aim to raise £315 million by 2030 and close the tax gap.

Government Stance

Exchequer Secretary James Murray emphasized fairness, stating the rules ensure "tax dodgers have nowhere to hide." Chancellor Rachel Reeves defended fiscal measures, refusing to rule out future tax hikes, calling it "irresponsible" to do so.

Crypto Community Reaction

Traders must submit personal details (name, DOB, address, tax ID) to exchanges, NFT marketplaces, and portfolio services by January 2026. Critics call it a "win-win for the government," taxing profits but ignoring losses. One miner questioned double taxation on hardware and profits.

The move aligns with broader efforts to regulate crypto while boosting public revenue.