The UK’s HM Revenue & Customs (HMRC) has intensified its efforts to recover unpaid crypto taxes, sending 65,000 warning letters to investors suspected of underreporting their digital asset holdings, a 134% surge compared to last year, according to the Financial Times.
The letters, described as “nudges,” are sent before formal investigations begin and aim to push taxpayers into voluntarily correcting their filings. Accounting firm UHY Hacker Young, which obtained the figures through a Freedom of Information request, said the move reflects growing regulatory sophistication in tracking crypto transactions.
Neela Chauhan, a partner at UHY Hacker Young, explained that HMRC now receives direct data from crypto exchanges, including Binance, to cross-check trading activity against self-reported income. “Authorities are leveraging exchange data to identify potential tax evasion cases,” she said.
The UK isn’t alone in ramping up enforcement. India’s tax department has also opened investigations into more than 400 suspected crypto tax evaders, reportedly using exchange data to trace undeclared gains.
The coordinated actions signal a global tightening of oversight, with tax agencies now possessing unprecedented access to blockchain-linked financial data. For investors, the message is clear — regulators are closing the gap between crypto anonymity and accountability.