Key U.K. Ministers have launched a crackdown on the crypto sector, specifically crypto traders and speculators who are not paying their taxes on profits earned from investments, as per U.K.-based media reports.
Under the new set of rules, people who hold Bitcoin, Ethereum, and other cryptocurrencies will have to report their personal details to crypto service providers to ensure that they are paying the correct amounts to the HMRC. Otherwise, they could face fines of 300 pounds.
The new rules under the Crypto Asset Reporting framework will take effect in January and is expected to raise 315 million pounds by April 2030. Crypto holders and traders who provide incorrect information relating to transactions and tax reference numbers will face additional fines.
‘By ensuring everyone pays their fair share, the new crypto reporting rules will make sure tax dodgers have nowhere to hide, helping raise the revenue needed to fund our nurses, police and other vital public services.’ said James Murray, Exchequer Secretary to the Treasury and MP.
The update comes as part of a larger series of changes being implemented, particularly tax increases for Britain’s richest. Chancellor Rachel Reeves refused to rule out the possibility of further tax increases.
“I’m not going to because it would be irresponsible for a Chancellor to do that,” said Reeves.