HMRC Orders Crypto Exchanges to Hand Over User Data to Recover £300M
The UK’s HM Revenue & Customs has instructed cryptocurrency exchanges to hand over customer information as part of an intensified drive to recover £300 million in unpaid taxes in the coming year. HMRC says the demand for user data is a necessary step to identify undeclared crypto gains and bring accounts into compliance, signalling a sharper enforcement posture toward the sector.
The directive matters because it heightens compliance costs for platforms, raises privacy concerns among users, and could prompt stricter KYC and reporting procedures across UK exchanges. Market participants should expect increased scrutiny and possible legal challenges from privacy advocates or firms; for users, the move underscores the importance of accurate tax reporting and the shrinking anonymity of crypto activity in major jurisdictions.