Crypto exchange Coinbase is handing over selected customer data to the U.K. tax authority, Her Majesty’s Revenue & Customs (HMRC). The disclosure applies to users with a U.K. address who received more than £5,000 (about $6,450) in cryptocurrency during the 2019/20 tax year. According to the report, that includes funds received through crypto purchases as well as digital assets deposited into a Coinbase account.
In an email sent to U.K. users on Oct. 2, Coinbase said HMRC had originally sought records for all British customers dating back to 2017. After discussions between the exchange and the tax authority, however, the request was narrowed. Coinbase said the revised notice is more limited in scope and would affect fewer than 3% of its U.K. customers.
Narrower request, broader compliance message
A Coinbase spokesperson said such information requests are common across financial services. The company added that it worked with HMRC through a series of constructive conversations to reach a more focused disclosure arrangement. For tax authorities, these efforts are part of a wider push to protect the integrity of the tax system and identify individuals who may have failed to report taxable gains.
HMRC said it routinely collects information from multiple sources to verify compliance. The report also noted that other crypto platforms, including Etoro and Cex.io, were said to have received similar customer data requests, suggesting that the scrutiny extends beyond a single exchange.
Crypto tax enforcement is expanding globally
The Coinbase case fits into a broader international pattern. In New Zealand, the Inland Revenue Department has asked crypto companies to provide customer details, asset values, and the types of digital assets held. In the United States, the Internal Revenue Service has also sent warning letters to crypto investors seeking confirmation that their transactions were properly reported.
Taken together, these developments show that tax authorities are steadily increasing oversight of crypto trading, transfers, and gains reporting. As data-sharing channels between exchanges and regulators become more established, compliance around digital asset taxation is becoming harder for investors to ignore.