HMRC has requested UK taxpayer information from the largest exchanges operating within the country, including CEX.IO in 2019. While it has not been confirmed whether CEX.IO complied with the requests of HMRC, other prominent exchanges such as Coinbase have stated that they cooperated by turning over transaction details for users who received more than £5,000 worth of crypto on its platform.
HMRC has used data matching to crack down on crypto tax fraud. By using information provided by exchanges like CEX.IO, HMRC is able to track crypto transactions and identify individuals who have not met their tax obligations.
Yes. In the UK, your transactions on CEX.IO or other platforms are subject to capital gains tax and ordinary income tax.
If you’ve earned or disposed (ex. Sold or traded away cryptocurrency) during the year, you’ll have a tax liability to report to HMRC.
For more information, check out our complete UK guide to cryptocurrency taxes.
Yes. CEX.IO operates legally in the UK.
Remember, there is no way to legally evade your taxes in the UK. However, tools like tax-loss harvesting and cryptocurrency tax software can help you save thousands of dollars legally.
For more information, check out our guide on how to avoid crypto tax in the UK.