Crypto users forced to share account details with tax officials

People in the UK who buy cryptocurrency now have to share their account details with the tax authorities or risk being fined. This rule started on 1 January.

HMRC wants to make sure people pay the correct tax on crypto, including capital gains tax when they sell at a profit. To do this, HMRC will automatically collect information from cryptocurrency exchanges, which work like banks for crypto users.

The government believes this will help recover tens of millions of pounds in unpaid tax. It also comes as regulators consider stricter rules for the crypto industry, such as preventing insider trading.

People who buy crypto at a low price and sell it at a higher price are expected to pay tax on their profit, but HMRC has found this hard to enforce in the past.

Under the new rules, crypto exchanges must regularly share accurate details of their users’ accounts and earnings with HMRC. Exchanges that fail to do this could face fines.