From January 2026, people who own crypto, such as Bitcoin, Ethereum or Dogecoin, must give personal details to each crypto service provider they use to make sure they are paying the right tax.
Those who do not comply risk a £300 fine from HMRC.
Once data is received from service providers, HMRC will identify those who have not been correctly paying tax on their crypto profits.
The move is part of a wider drive by HMRC to tackle non-compliance.
Service providers will start collecting data on users’ activities from January 2026. Any service provider that fails to report this information, or submits inaccurate or incomplete reports, could also be charged a penalty of up to £300 per user by HMRC, the revenue body said.
The new rules are known as the Cryptoasset Reporting Framework.
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