The UK tax authority increases crypto warning letters to combat unpaid gains

HM Revenue & Customs sent 65,000 warning letters in 2024-25, sharply rising from 27,700 the previous year, reflecting heightened efforts to ensure taxpayers report their crypto gains accurately.

With an estimated 7 million adults in the UK holding cryptocurrencies as of 2023, up from 4.4% in 2021, HMRC is adapting its practices to track tax compliance in an increasingly digital asset-driven economy.