by HM Revenue and Customs (HMRC) warns cryptocurrency owners that new reporting requirements help to expose those who try to avoid taxes that are due to their profit.
From January 2026, people who have crypto, such as Bitcoin, Ethereum or Dogecoin, every crypto service provider you use, must provide personal data to ensure that you pay the right tax.
Those who do not comply with a fine of £ 300 risk from the HMRC.
As soon as data from service providers have been received, the HMRC identifies those who have not paid taxes correctly on their crypto profits.
The move is part of a wider drive from HMRC to combat non -compliance.
Service providers will start collecting data on the activities of the users from January 2026. Every service provider who does not report this information or submits inaccurate or incomplete reports could also calculate a punishment of up to 300 GBP per user from HMRC, according to the revenue body.
The new rules are called Cryptoasset report framework.
The capital gains tax can be due when selling or replacing crypto, while income tax and national insurance can apply to crypto, which were obtained from employment, mining, compliance or creditors.
People who are not sure about their tax obligations can check whether they have to pay taxes if they receive or sell crypto on GOV.UK. You can also inform HMRC about unpaid tax on crypto using the cryptoasset.
James Murray, Exchange Secretary of the Ministry of Finance, said: “By paying their fair stock, the new rules for Krypto reports will ensure that tax dodger cannot hide anywhere and increase the income that is necessary for the financing of our nurses, police and other important public services.”
Jonathan Athow, General Director of HMRC for customer strategy and tax design, said: “It is important that this is not a new tax – if you achieve a profit when selling, replacing or transfer your crypto, it may already be due.
“These new reporting requirements give us the information that helps people to do their tax matters correctly.
“I ask all cryptoasset users to check the details you need to give your provider. Now take measures and have this information at hand, you can avoid punishments in the future.”
