UK tax authority HMRC has sent nearly 65,000 “nudge letters” to crypto investors suspected of underreporting gains, doubling from the previous year. HMRC has issued over 100,000 such letters in the past four years, reflecting increased focus on crypto tax compliance as adoption and prices surge.

The Financial Conduct Authority estimates that 7 million UK adults now hold crypto, up from 5 million in 2022 and 2.2 million in 2021. Complex tax rules have led to confusion among traders, with HMRC receiving transaction data directly from exchanges and gaining global data access in 2026.

US lawmakers are considering updates to crypto tax policy, including exempting small transactions from taxation and clarifying staking rewards treatment. South Korea’s NTS has intensified its crackdown on crypto tax evasion, warning of asset seizures even from cold wallets linked to unpaid taxes.

Read more at Cointelegraph: UK Tax Authority Ups Crypto Warning Letters in Crackdown on Unpaid Gains