UK Doubles Crypto Warning Letters as Tax Scrutiny Intensifies

The UK tax authority has ramped up its scrutiny of crypto investors by issuing double the number of warning letters in 2024–25. HMRC is aiming to encourage those suspected of underreporting or avoiding taxes on digital asset gains to rectify their filings before formal investigations commence. This surge reflects a growing focus on crypto-related tax compliance from HMRC, which has sent over 100,000 such letters in the past four years. The agency’s increased visibility comes with the ability to receive transaction data directly from major exchanges and will gain automatic access to global exchange data beginning in 2026.