The UK tax authority is paying much closer attention to cryptocurrency users. During the 2025–2026 fiscal year, HM Revenue and Customs (HMRC) delivered over 81,000 warning letters to individuals it believed owed cryptocurrency taxes. Given that HMRC concentrates on profits realized during the 2022–2025 cryptocurrency bull run, that is almost three times the 27,714 letters delivered in 2024.
Additionally, HMRC has cautioned consumers that selling, exchanging, giving away, or using cryptocurrency to make transactions may result in tax responsibilities. This extensive warning campaign demonstrates how actively HMRC is currently monitoring bitcoin activities.
The tax laws are unclear to a lot of individuals. Generally speaking, owning cryptocurrency does not include paying taxes; but, selling it for a profit may. The same goes for swapping one cryptocurrency for another or using crypto to buy things. HMRC warns that not paying the tax you owe can lead to penalties of up to 100% of the unpaid amount, plus interest.
This scrutiny is likely to increase even more. Starting in 2027, HMRC will get extra information from offshore crypto companies because of new reporting rules. The tax authority thinks these changes could bring in £315 million, or about $430 million, by 2030.
Accounting expert Neela Chauhan from UHY Hacker Young told the BBC that many crypto traders are quite young and may not have much experience dealing with HMRC. Some investors also think that tax authorities cannot easily track their crypto transactions.
But this belief is getting riskier as exchanges and governments get better at sharing financial information. The UK crypto industry is also dealing with another problem: getting access to banking services.
Earlier this month, the Crypto and Digital Assets All-Party Parliamentary Group asked major UK banks to explain how they handle cryptocurrency businesses. MPs said they had heard complaints from companies that have trouble opening bank accounts or face limits on payments.
The group asked banks about their policies, transaction limits, and why they make certain decisions about crypto businesses. MPs agreed that banks must manage financial crime risks and protect customers, but said that each company should be judged on its real risk, not just because it is a crypto business.
Research from the UK Cryptoasset Business Council found that banks block or delay about 40% of attempted transfers to digital asset exchanges. For the UK’s crypto sector, stricter tax enforcement and trouble getting banking services make things more difficult.
At the same time, the government’s approach shows that crypto is becoming part of the mainstream financial system. Investors may have more rules to follow than before, but HMRC’s message is clear: profits from crypto are still taxed, even if they are on a blockchain.
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