UK HMRC Sent 81K Crypto Tax Warning Letters in 12 Months, Up 25%

The letter volume matters less as a revenue tool than as a signal: HMRC is building a paper trail and normalizing the expectation that on-chain activity is taxable, which reaches far beyond the recipients. The burden falls hardest on retail holders who have never treated self-custody or DeFi activity as reportable, and on the exchanges and advisers now positioned as the intermediary layer. Whether the letters translate into assessments, disclosures or voluntary amendments is the open question — and whether other tax authorities mirror the approach.