Why Does HMRC Cryptocurrency Tax Reporting Require Users to Share Their Account Details?

HMRC Cryptocurrency tax reporting has entered a new phase. From 1 January 2026, crypto platforms operating in or serving the UK must collect and share user account details with HM Revenue & Customs (HMRC).

This change directly affects individuals who buy, sell, trade, or hold cryptoassets. It also signals a clear message from HMRC. Crypto activity is no longer outside the tax system.

At Apex Accountants, we are already supporting clients who need clarity on what this means and how to stay compliant.

For more information on crypto tax reporting, read crypto tax reporting requirements and what they mean for the UK.

What Has Changed From January 2026

Crypto exchanges and similar platforms now have legal reporting duties. They must gather accurate information about their users and submit this data to HMRC.

This includes UK residents using both UK-based and overseas platforms.

The rules are part of the Cryptoasset Reporting Framework, an international standard adopted by the UK through domestic legislation.

The goal is simple.

Give HMRC reliable data to match against tax returns.

What Information Crypto Platforms Must Collect

Crypto platforms must now obtain and verify key personal and transaction details.

This includes:

• Full name
• Date of birth
• Home address
• Country of tax residence
• National Insurance number or Unique Taxpayer Reference
• Transaction history
• Values recorded in pound sterling

Platforms must also carry out due diligence to confirm the accuracy of this information.

If a user does not provide the required details, the platform may restrict access or report the failure. Penalties can apply.

Why Strict HMRC Cryptocurrency Tax Reporting Rules Are Being Introduced

HMRC has long been concerned about crypto tax non-compliance. Many investors misunderstood their obligations. Others failed to declare gains altogether.

Crypto prices have risen sharply recently. That created significant taxable profits.

At the same time, HMRC struggled to obtain consistent data. The new framework changes that.

HMRC can now:

• Identify undeclared crypto gains
• Compare exchange data with tax returns
• Detect patterns of non-reporting
• Share information with overseas tax authorities

This reduces the scope for error and avoidance.

Does This Create a New Crypto Tax?

No. The tax rules themselves have not changed. Cryptoassets are already taxed in the UK.

Depending on activity, this may include:

• Capital Gains Tax on disposals
• Income Tax on mining, staking, or trading activity

What has changed is visibility. HMRC now receives structured data directly from platforms.

What Counts as a Taxable Crypto Disposal?

Many UK investors are still unclear on this point.

A taxable event can arise when you:

• Sell crypto for cash
• Exchange one cryptoasset for another
• Use crypto to buy goods or services
• Gift crypto to someone other than a spouse or civil partner

Each of these can trigger a gain or loss. Accurate records are essential.

Reporting Deadlines UK Crypto Users Must Know

If you made crypto disposals during the 2024–25 tax year, you may need to submit a self-assessment return by 31 January 2026.

HMRC has updated tax return forms to include a specific crypto section. This removes any doubt about disclosure expectations.

Losses can still be claimed. These may be carried forward if reported correctly.

What Happens If You Have Undeclared Crypto Gains

HMRC is encouraging taxpayers to correct past errors voluntarily. If you have undeclared crypto gains from earlier years, acting early matters.

Voluntary disclosure often leads to:

• Lower penalties
• Reduced interest
• Better control over the process

Waiting for HMRC to contact you usually leads to harsher outcomes.

How We Can Help With Cryptoasset Tax Compliance

Apex Accountants provide specialist support for cryptoasset tax compliance, including:

• Crypto capital gains calculations
• Self-assessment preparation and filing
• Review of historic crypto activity
• Voluntary disclosure support
• Record-keeping systems and reconciliation
• HMRC enquiry and investigation assistance

Our crypto tax accountants in the UK work with individuals, investors, and business owners who want certainty, not surprises.

Conclusion

Apex Accountants support individuals and businesses with clear, practical crypto tax advice. We help you understand your reporting obligations, calculate gains accurately, and prepare compliant self-assessment returns. Where historic issues exist, we guide you through voluntary disclosure with care and precision.

Our approach is straightforward. We focus on accuracy, clarity, and timely action. This allows you to meet HMRC requirements with confidence and avoid unnecessary penalties or stress.

If you hold or trade cryptoassets and want certainty over your tax position, contact Apex Accountants today. Our team of crypto tax accountants in the UK is ready to review your situation and provide tailored support.

FAQs About Cryptoasset Tax Reporting

Do small crypto gains need reporting?

Yes. Even small gains may need reporting. HMRC reporting rules differ from tax payment thresholds. You must declare disposals if total proceeds or activity meet reporting criteria.

What if I used an overseas exchange?

Using an overseas exchange does not remove UK tax obligations. Platforms serving UK residents fall within reporting rules, and HMRC can receive data through international information-sharing agreements.

Will HMRC see my full transaction history?

Crypto platforms submit user details and transaction summaries. HMRC can request additional records during compliance checks or enquiries if figures reported on tax returns appear inconsistent.

Does holding crypto trigger tax?

No. Simply holding crypto does not trigger tax. Tax usually arises when you sell, exchange, spend, gift, or receive crypto income, such as staking or mining rewards.

How to avoid tax on crypto in the UK?

You cannot legally avoid tax on taxable crypto gains. The correct approach is accurate reporting, using allowances where available, claiming losses properly, and taking professional tax advice.

Can HMRC check my crypto account?

HMRC can access information reported by crypto platforms. It may also request records directly from taxpayers during reviews or investigations to confirm declared gains and income.

What are the new rules for HMRC crypto?

From January 2026, crypto platforms must collect and report UK users’ identity and transaction data to HMRC under international reporting standards, improving transparency and compliance checks.

How to hide crypto from HMRC?

You should not attempt to hide crypto. Failing to declare taxable activity is illegal. New reporting rules significantly reduce anonymity and increase penalties for non-compliance.

Does Crypto.com share information with HMRC?

Crypto platforms operating in or serving the UK must comply with reporting rules. This can include sharing user details and transaction data with HMRC where required by law.