Yes. HMRC has requested UK taxpayer information from the largest exchanges operating within the country. Kraken has provided contact details for UK users who have greater than £5,000 of crypto on its platform.
HMRC has used data matching to crack down on crypto tax fraud. By using information provided by exchanges like Kraken, HMRC is able to track crypto transactions and identify individuals who have not met their tax obligations.
Yes. In the UK, your transactions on Kraken 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. In the United Kingdom, Kraken is regulated by the Financial Conduct Authority (FCA) and holds the status of a crypto asset firm and an authorized futures trading venue.
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.