The UK regulator cracked down on those underreporting and evading paying tax on digital asset gains. As more individuals trade crypto, the regulator has doubled down on its scrutiny.
The UK government department, HM Revenue & Customs (HMRC), which is responsible for tax collection, customs regulation, issued around 65,000 letters to investors requesting them to amend their tax filings before the regulator launched an official scrutiny. The year before, the regulator sent only about 27000 letters to the investor. However, this exponential rise in the letters shows that many people are being exposed to digital assets
According to the Crypto Asset Consumer Research 2024 report: “We see a continued rise in people that are aware of crypto, while crypto ownership continues to grow. Our research reveals that 12% of adults surveyed – extrapolated to around 7 million adults in the UK – owned cryptoassets in August 2024. This is compared with around 10% (5 million) in 2022 or 4.4% (2.2 million) we calculated in 2021, showing the growing interest. These results highlight the need for clear regulation that helps people better understand the risks and supports a safe, competitive, and sustainable crypto sector in the UK.”
These letters, also called “nudge letters” are an informal soft reminder or warning, urging the holders of the asset to voluntarily rectify the data before any legal action is taken.
Furthermore, the report indicates that traditional media, particularly television, along with online news platforms, have been the primary sources of public awareness. Around 25% of people heard about crypto on traditional media, while about the same percentage 24% were aware of crypto through online blogs and news.
