UK tax authority sends 65,000 letters to suspected crypto tax evaders, more than double last year's count: FT

The UK's tax authority has dramatically escalated cryptocurrency tax enforcement, sending 65,000 letters to suspected crypto tax evaders—more than double last year's volume. This aggressive crackdown signals heightened scrutiny of Bitcoin, Ethereum, and other digital asset transactions as authorities close loopholes in cryptocurrency tax compliance.

Starting in 2026, cryptocurrency exchanges will implement comprehensive reporting requirements, sharing detailed user activity data with approximately 70 international jurisdictions. This regulatory framework will create unprecedented transparency in the global crypto ecosystem, affecting traders, DeFi participants, and blockchain investors worldwide.

The surge in enforcement letters demonstrates how tax authorities are leveraging blockchain's transparent nature to identify unreported cryptocurrency gains. This development could significantly impact crypto market sentiment and trading behavior as investors face increased accountability for their digital asset portfolios.

Cryptocurrency holders should prepare for enhanced regulatory oversight and ensure proper tax documentation for Bitcoin transactions, altcoin trades, and DeFi activities. The new international reporting standards represent a pivotal shift toward mainstream crypto regulation, potentially affecting market liquidity and institutional adoption as compliance requirements intensify across major cryptocurrency exchanges and trading platforms.