Key Takeaways
- Starting in 2026, UK exchanges like Kraken will be required to share detailed user and transaction data with HMRC under the OECD Cryptoasset Reporting Framework (CARF).
- It’s likely that transfers from Kraken to other wallets can be traced by the HMRC.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Kraken’s tax reporting policies within United Kingdom. We’ll also break down a simple way to report your Kraken taxes in minutes.
What is Kraken?
Kraken is a centralized cryptocurrency exchange that serves UK investors and complies with Financial Conduct Authority (FCA) oversight. Kraken users must complete Know Your Customer (KYC) verification to get started trading.Â
What does HMRC do with the information that Kraken provides?
Yes. Kraken already complies with FCA obligations. Starting in 2026, the exchange will be subject to additional disclosure requirements under the Cryptoasset Reporting Framework (CARF).
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This means Kraken will be required to collect detailed customer data and report crypto transactions directly to HMRC.
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Even before CARF, HMRC has been increasing enforcement on crypto taxes. The agency has issued “nudge letters” to crypto investors, using exchange data and blockchain analytics to trace activity.
Do I owe taxes if I use Kraken in the UK?
Yes. All crypto activity on Kraken is subject to tax.
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- Capital gains. Selling or swapping crypto through Kraken counts as a disposal. You’ll incur a capital gain or loss depending on how the price of your crypto has changed since you originally recieved it.
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- Income. Staking, referral rewards, and airdrops are typically taxed as income at market value.
It’s important to note that wallet-to-wallet transfers are not subject to tax. Moving crypto from Kraken to your own wallet is not taxable.
Does Kraken have KYC?
Yes. All UK users must complete identity verification to get started trading on Kraken.
Is Kraken legal in the UK?
Yes. Kraken operates legally under FCA registration. Starting in 2026, CARF rules will increase HMRC visibility into user activity on Kraken and other centralized exchanges.Â
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How do I avoid Kraken taxes in the UK?
You cannot legally evade taxes. But there are steps you can reduce your tax liability:
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- Using cryptocurrency tax software. Crypto tax software like CoinLedger automatically tracks your Kraken activity and helps you find your biggest tax-saving opportunities.
Get a Kraken tax report today
Looking for a simple way to report your Kraken taxes? With CoinLedger, you can import your Kraken transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Kraken and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
