UK crypto traders will face penalties if they fail to provide personal information under HMRC’s updated reporting requirements.

The UK’s HM Revenue & Customs (HMRC) has published updated guidelines introducing new reporting obligations for cryptocurrency traders and service providers on 7 July 2025.

Crypto bros are being forced to pay a fair share of tax

  • New rules will help unmask anyone evading tax due on their crypto profits
  • UK crypto holders must provide personal details to crypto service providers from January 2026 or face penalties of up to GBP 300
  • Aligns with the government’s Plan for Change to ensure everyone pays their fair share of tax to fund vital public services

Public coffers are set for a boost as HM Revenue and Customs (HMRC) goes after crypto owners who aren’t paying their fair share of tax.

From January 2026, people who own crypto–like Bitcoin, Ethereum or Dogecoin must give personal details to every crypto service provider they use to make sure they are paying the right tax.

Those who don’t comply risk a GBP 300 fine from HMRC.

Once data is received from service providers, HMRC will be able to identify those who haven’t been correctly paying tax on their crypto profits, bringing in money that will help pay for frontline nurses, police, and teachers.

This is estimated to raise up to GBP 315 million by April 2030 in tax revenue – the same amount needed to fund more than 10,000 newly-qualified nurses for a year.

It’s part of a major drive by HMRC to tackle non-compliance including the small minority who are deliberately evading tax due on their profits from crypto.

Service providers will begin 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 GBP 300 per user by HMRC.

The new rules mean crypto service providers must collect and report:

  • Your name, address, and date of birth
  • Your tax residence
  • Your National Insurance number or tax reference
  • A summary of your crypto transactions

James Murray MP, Exchequer Secretary to the Treasury, said:
“We’re going further and faster to crack down on tax dodgers as we close the tax gap and deliver on our Plan for Change.
“By ensuring everyone pays their fair share, the new crypto reporting rules will make sure tax dodgers have nowhere to hide, helping raise the revenue needed to fund our nurses, police and other vital public services.”