UK Tax Authority Sends 65,000 Crypto ‘Nudge Letters’ to Suspected Tax Evaders

HM Revenue & Customs (HMRC) has intensified its scrutiny of the crypto sector, sending 65,000 “nudge letters” to investors suspected of underreporting or evading taxes on digital assets, more than double last year’s figure, according to The Financial ￰0￱ data, obtained through a Freedom of Information Act request by accounting firm UHY Hacker Young, shows a 134% increase in warning ￰1￱ letters are typically sent before formal investigations begin, urging recipients to review their filings and settle outstanding ￰2￱ and India Tax Authorities Tap Exchange Data to Track Crypto Evaders UHY partner Neela Chauhan said HMRC is leveraging data provided directly by crypto exchanges to identify potential cases of tax ￰3￱ UK’s campaign mirrors global ￰4￱ India, tax authorities are reportedly pursuing over 400 suspected crypto tax evaders using data shared by ￰5￱ examples highlight how governments are gaining deeper visibility into crypto activity through international data-sharing ￰6￱ January 2026, HMRC will gain even broader access to information through the Crypto-Assets Reporting Framework (CARF), a global initiative adopted by around 70 jurisdictions, including OECD ￰7￱ CARF, exchanges will be required to report user and transaction data to national tax authorities, with the first submissions due by May 31, ￰8￱ UK’s tax rules classify most crypto assets as ￰9￱ sale, swap, or purchase made with crypto counts as a disposal subject to Capital Gains Tax (CGT).

Top 0.1% earners in the UK already pay more income taxes than the bottom 50%. Why should they pay even more? At some point such unfair treatment simply makes the most successful people emigrate and take countless jobs with ￰10￱ is it so difficult to understand? ￰11￱ — Michael ￰12￱ (@MichaelAArouet) October 19, 2025 Earning crypto through mining, staking, airdrops, or employment is treated as income, taxed ￰13￱ adjustments raised CGT rates to 18% for basic-rate and 24% for higher-rate taxpayers for disposals made after October 30, 2024. Meanwhile, the UK’s financial regulator has lifted its four-year ban on crypto-based exchange-traded notes (ETNs), allowing asset managers to list products on the London Stock ￰14￱ analysts at IG Group expect the move to boost domestic crypto activity by as much as 20%, reflecting growing mainstream acceptance despite heightened tax ￰15￱ to Appoint ‘Digital Markets Champion’ to Oversee Blockchain Transition in Finance As reported, the UK government plans to appoint a “digital markets champion” to accelerate the nation’s shift toward blockchain-based financial infrastructure, according to remarks by Economic Secretary to the Treasury Lucy ￰16￱ new official will coordinate private sector efforts on tokenizing wholesale financial instruments and ensure that innovation aligns with the country’s regulatory ￰17￱ at the Digital Assets Week conference in London, Rigby also announced the creation of the Dematerialisation Market Action Taskforce, a new body focused on replacing paper-based share certificates with digital records to enhance market ￰18￱ initiative is part of the UK’s Wholesale Financial Markets Digital Strategy, which outlines plans for issuing blockchain-based sovereign debt known as “digital gilts” under the DIGIT framework.