The UK has sent "nudge" letters to approximately 65,000 cryptocurrency investors to recover undeclared taxes.

BlockBeats News, October 19th, according to TheBlock, the UK's HM Revenue & Customs (HMRC) has sent 65,000 letters to investors suspected of owing cryptocurrency holding tax, a 134% increase from the previous year. These "reminder letters" are usually sent to individuals suspected of tax evasion or avoidance before a formal investigation is launched, as global tax authorities' ability to access cryptocurrency transaction data has significantly improved.

The UK's complex cryptocurrency tax system considers the cryptocurrency most individuals use as an investment, so selling, exchanging, or using cryptocurrency is considered a "disposal" and is subject to Capital Gains Tax (CGT). Cryptocurrency "earned" through mining, staking rewards, partial airdrops, and employment may be considered income and subject to separate Income Tax. Last autumn, the UK's Capital Gains Tax rates were increased, with disposals before October 30, 2024, subject to a 10% basic rate and a 20% higher rate, and disposals thereafter subject to an 18% basic rate and 24% higher rate. There are approximately 7 million adults in the UK holding cryptocurrency, and the asset size is also growing rapidly.