Daily Mail<\/a>, holders of Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies must supply accurate information to exchanges and platforms they use for trading.<\/p>\nService providers that fail to report transaction details and tax reference numbers will also face penalties.<\/p>\n
<\/p>\n
\u2018I\u2019m not going to apologise\u2019: Chancellor Reeves<\/h3>\n
Exchequer Secretary James Murray MP stated the rules will help \u201ccrack down on tax dodgers as we close the tax gap.\u201d<\/p>\n
The minister emphasized that comprehensive reporting will ensure \u201ctax dodgers have nowhere to hide\u201d while generating revenue for essential public services including healthcare and law enforcement.<\/p>\n
The new framework forms part of broader government efforts to increase tax compliance across digital asset transactions. Current UK tax rules require cryptocurrency holders to pay capital gains tax on profits, but enforcement has been limited by reporting gaps.<\/p>\n
The timing coincides with Chancellor Rachel Reeves\u2019s refusal to rule out future tax increases following recent welfare reform reversals.<\/p>\n
Reeves defended the government\u2019s fiscal approach, stating, \u201cI\u2019m not going to apologise for making sure the numbers add up.\u201d<\/p>\n
The tax compliance measures complement the UK\u2019s broader cryptocurrency regulatory framework, with draft legislation published in April 2025. This brings crypto exchanges, dealers, and stablecoin issuers under traditional financial services oversight.<\/p>\n
<\/p>\n
The regulatory approach aligns more closely with the United States than the EU\u2019s Markets in Cryptoassets Regulation. UK authorities are extending existing financial regulations to crypto firms through phased implementation expected to be complete by 2026.<\/p>\n
The first phase focuses on stablecoins while the second phase will expand to broader cryptoasset categories and activities. Key rules and requirements are already being implemented throughout 2025.<\/p>\n
Cryptocurrency service providers will need to implement customer data collection systems and regular reporting procedures to avoid penalties. The compliance burden may increase operational costs for smaller exchanges and trading platforms.<\/p>\n
Users trading on non-compliant platforms or failing to provide required documentation face direct financial penalties. The \u00a3300 fine structure creates clear incentives for voluntary compliance while generating revenue from non-compliant actors.<\/p>\n
Chancellor Reeves acknowledged that recent policy reversals have been \u201cdamaging\u201d but maintained that fiscal responsibility requires comprehensive tax collection.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
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