81,000 warning letters sent to crypto holders in HMRC tax crackdown

81,000 warning letters sent to crypto holders in HMRC tax crackdown Image source, Getty ImagesByJoe TidyCyber correspondent, BBC World ServicePublishedJust nowHM Revenue and Customs (HMRC) sent more than 81,000 letters warning cryptocurrency holders they may owe capital gains tax in the past year.A Freedom of Information (FOI) request seen by the BBC showed the number of letters sent by the tax authority had almost tripled since 2024.Investors could face fines or prosecution if they fail to declare profits they made from selling, even if they exchange one cryptocurrency for another.New powers due to be given to HMRC next year will make it easier to target wealthy crypto investors, with one analyst saying investigations will be like "shooting fish in a barrel"."There is the expectation amongst tax authorities that cryptocurrency investment is rife with tax evasion," says Neela Chauhan, partner at UHY Hacker Young - which carried out the FOI."A lot of the traders are young, have had little previous exposure to HMRC and often work under the assumption that HMRC has limited visibility over their activities."In the 2025-26 financial year, HMRC sent 81,172 warning letters, emails and text messages to crypto investors it suspects may have underpaid tax.The number in 2023-24 was just 27,714.From Bitcoin to blockchain: Key cryptocurrency terms and what they meanPublished5 JuneThe value of cryptocurrencies such as Bitcoin and Ethereum has fallen in the past year, but HMRC suspects there are still large amounts of unpaid capital gains from the rise in cryptocurrency values between December 2022 and October 2025.During this time, the price of Bitcoin shot up from around £14,000 to £90,000.Accountants are urging investors to check whether they owe money, as upcoming powers will make it easier for HMRC to target individuals.From March 2027, cryptocurrency platforms located in dozens of countries outside the UK will be obliged to share information abo...